Of all the questions I receive about cryptocurrency taxation in Ireland, the most common is the most fundamental: when exactly does tax apply, and how is the amount calculated? This article — part of our cryptocurrency tax guide series — answers both questions completely, with worked examples.
The Trigger: What Is a Disposal?
CGT arises when you dispose of a capital asset at a gain. In the context of cryptocurrency, Revenue treats each of the following as a disposal:
Selling cryptocurrency for euros or any other fiat currency. Swapping one cryptocurrency for another (Bitcoin for Ethereum, ETH for USDC — any crypto-to-crypto exchange). Spending cryptocurrency to purchase goods or services. Gifting cryptocurrency to another person (other than a spouse or civil partner). Receiving payment for the loss or destruction of cryptocurrency.
Transferring cryptocurrency between your own wallets or between your own exchange accounts is not a disposal. The asset is still yours — it has simply moved location. No CGT arises.
The Calculation: Four Steps
Step 1: Establish the disposal proceeds.
The disposal proceeds are the value you received in exchange for the cryptocurrency, expressed in euros. If you sold Bitcoin for €18,000, your proceeds are €18,000. If you exchanged Bitcoin for Ethereum when Bitcoin was worth €18,000 (at the time of the exchange), your proceeds from the Bitcoin disposal are still €18,000 — the market value of what you gave up, not what you received.
This is critical for crypto-to-crypto trades: you must convert the disposal proceeds to euros at the market rate on the date of the transaction, regardless of whether any euros actually changed hands.
Step 2: Establish the allowable acquisition cost.
The allowable cost is what you paid for the cryptocurrency being disposed of, in euros at the time of acquisition. This includes:
The purchase price in euros (or the euro equivalent of the fiat currency you used). Transaction fees paid on acquisition — exchange fees, gas fees, any other costs directly associated with acquiring the asset.
Step 3: Identify which specific units you are disposing of.
If you have acquired the same cryptocurrency multiple times at different prices, you need to determine which units you are treating as disposed of. Ireland uses a modified FIFO (First In, First Out) rule — with a same-day rule and a 30-day rule that prevent bed-and-breakfast transactions:
Same-day rule: disposals are matched first against acquisitions on the same day. 30-day rule: after same-day matching, disposals are matched against acquisitions in the following 30 days (in chronological order). FIFO: after same-day and 30-day matching, any remaining disposals are matched against the earliest acquisitions.
Step 4: Calculate the gain and deduct the annual exemption.
Gain = Disposal proceeds − Allowable acquisition cost
Net the gains and losses from all disposals in the tax year. Deduct the annual CGT exemption of €1,270. The remainder is the taxable gain, subject to CGT at 33%.
A Worked Example
Padraig buys 1 Bitcoin in January 2024 for €28,000 (including exchange fees). He buys another 0.5 Bitcoin in September 2024 for €16,000 (including fees). In June 2026, he sells 1 Bitcoin for €52,000.
Under FIFO, the 1 Bitcoin sold in June 2026 is matched against the January 2024 purchase (the earliest acquisition).
Disposal proceeds: €52,000. Allowable cost: €28,000. Gross gain: €24,000. Annual exemption: €1,270. Taxable gain: €22,730. CGT at 33%: €7,500.90.
The 0.5 Bitcoin purchased in September 2024 (cost: €16,000) remains in Padraig’s portfolio, unaffected by this disposal.
Losses: Can They Be Offset?
If you dispose of cryptocurrency at a loss — selling for less than you paid — the loss can be offset against gains on other disposals in the same tax year. Losses can also be carried forward to offset against gains in future years.
A loss can only be used against a gain — it cannot generate a repayment of tax. And losses from one asset class (crypto losses) can only be offset against gains from capital assets — they cannot be set against income.
This means that if you have crypto losses from disposals in a bad year, those losses are valuable — keep a record of them even if no CGT is due in that year, because they can reduce your tax in a future profitable year.
Disposal Expenses
In addition to the acquisition cost, certain costs directly associated with the disposal itself are also deductible:
Exchange withdrawal fees associated with the disposal. Any professional fees specifically incurred in connection with the disposal (for example, an accountant’s fee for calculating the gain on a complex set of transactions).
Normal ongoing accountancy fees for preparing tax returns are not deductible as disposal expenses — they are personal expenses. Only costs that are specifically and directly attributable to the disposal are deductible.
When Must CGT Be Paid?
CGT payment dates in Ireland are earlier than most people realise:
Disposals made 1 January to 30 November: CGT is due by 15 December of the same year. Disposals made 1 December to 31 December: CGT is due by 31 January of the following year.
The CGT return (on your Form 11 or via a standalone CGT return) is filed separately from the payment and has a later deadline — typically the October/November self-assessment deadline. But the payment must be made by December 15 or January 31.
This means a crypto investor who sells in June and makes a significant gain must have the cash available to pay the tax by December 15 — before the annual return is even filed. This catches people off guard, particularly if they have spent the disposal proceeds or reinvested them into other assets.
A practical rule: when you make a significant crypto disposal, set aside 33% of the estimated gain immediately. Do not wait until December.
Gifting Cryptocurrency
Gifting crypto to someone other than your spouse or civil partner is a disposal at market value. The donor (giver) pays CGT on the gain as if they had sold the crypto at its current market value. The recipient also potentially has a CAT (Capital Acquisitions Tax) liability depending on the relationship and value — we cover the inheritance and CAT angle in detail in our guide to how CAT applies to crypto estates.
Gifting to a spouse or civil partner is not a disposal — transfers between spouses are exempt from CGT. The recipient spouse takes on the donor’s original acquisition cost, and CGT arises when they later dispose of the asset.
The Most Common Mistakes
Not tracking crypto-to-crypto trades as CGT events. Assuming no tax is due until you convert back to euros. Not recording the euro value of each transaction at the date it occurred. Missing the December 15 payment deadline. Not keeping records of losses (which can offset future gains).
All of these are avoidable with the right record-keeping system, which I cover in detail in our guide to crypto CGT record-keeping in Ireland.
Paddy Malone FCA AITI
Paddy is the principal of Malone & Co. Chartered Accountants in Dundalk. A Fellow of Chartered Accountants Ireland and a Chartered Tax Consultant with the Irish Tax Institute, he has been advising businesses across County Louth and the North-East for over 35 years.