Non-fungible tokens (NFTs) sit in an interesting position in Irish tax law. They are a distinct asset class — each NFT is unique, unlike fungible cryptocurrencies where one Bitcoin is equivalent to any other Bitcoin. But the principles that govern their tax treatment are not fundamentally different from the principles applied to other digital assets and, in many respects, to art and collectibles.
Revenue has not published specific guidance on NFTs as of the time of writing. This means the tax treatment must be derived from applying existing principles — primarily those governing capital assets and trading income — to the specific facts of each NFT-related activity, as we cover across our cryptocurrency tax guide series. The analysis differs depending on whether you are a collector, a trader, or a creator.
NFTs as a Collector / Investor
If you purchase NFTs as an investment — buying them with the expectation that they will appreciate in value — and later sell them at a profit, the likely tax treatment is CGT at 33% on the gain.
The calculation is the same as for other capital assets:
Disposal proceeds (in euros at date of sale, including any crypto-to-crypto conversion at that date). Minus: allowable acquisition cost (what you paid in euros, or the euro equivalent of the crypto used to purchase the NFT at the time of purchase).
The fact that you purchased the NFT with Ethereum rather than euros does not change the analysis — the cost is the euro value of the Ethereum at the time it was used for the purchase. And paying for an NFT with Ethereum is itself a disposal of Ethereum for CGT purposes, in addition to acquiring the NFT.
Example: Ciara uses 0.5 ETH (worth €900 at the time) to purchase an NFT in March 2022. She sells the NFT in January 2026 for 2 ETH (worth €7,200 at the time of sale). Two CGT calculations arise:
First, the disposal of 0.5 ETH to purchase the NFT: proceeds €900, cost depends on when she acquired that ETH. Second, the disposal of the NFT: proceeds €7,200, cost €900. Gain on the NFT: €6,300.
NFTs as a Trader
If you buy and sell NFTs frequently, in a commercial, systematic way — flipping NFTs as a business rather than holding them as investments — Revenue may treat the activity as a trade. Trading income from NFT activity would be subject to income tax (at up to 40%) plus PRSI and USC, rather than CGT (33%).
The distinction between investment and trading is a facts and circumstances assessment. The frequency and volume of transactions, the nature of the activity, whether it has the characteristics of a business (time committed, resources deployed, systematic approach), and the intention at the point of acquisition all contribute to the analysis.
For most casual NFT collectors who flip occasionally, CGT treatment is most likely. For someone who is treating NFT trading as a full-time business, buying and selling dozens of NFTs per month, the trading characterisation is more likely — and more appropriate, since the profits may exceed what CGT rates would apply.
NFTs as a Creator
Artists, musicians, digital creators, and others who mint and sell their own NFTs are in a different position from collectors. The income from the initial sale of a self-created NFT is generally trading income — the proceeds of selling the product of your creative work.
For an artist who creates an NFT and sells it for €5,000, that €5,000 is income from their trade or profession. It is subject to income tax, PRSI, and USC, not CGT. The allowable expenses of the trade — materials, software, platform fees, time — are deductible in the normal way.
Royalties From Secondary Sales
Many NFT platforms allow creators to specify a royalty percentage that is paid on every subsequent secondary sale of the NFT. If Seán creates an NFT and specifies a 10% royalty, he receives 10% of every future sale of that NFT, potentially in perpetuity.
These royalties are income — recurring income from the exploitation of a creative work. They are taxable as trading income or miscellaneous income depending on the scale and nature of the activity. They are not capital gains.
Tracking royalties is a record-keeping challenge because they are paid automatically by the smart contract and may be received as cryptocurrency (ETH, SOL, or the relevant blockchain’s native token). Each royalty payment must be recorded at its euro value on the date received, and declared as income.
The Crypto Used to Buy NFTs
As noted in the example above, purchasing an NFT with cryptocurrency is itself a disposal of that cryptocurrency for CGT purposes. This is the same rule that applies to any use of crypto to purchase goods or services.
If you buy an NFT using Ethereum, you have disposed of Ethereum and acquired an NFT — the same principle that applies to all crypto-to-crypto trades under Irish CGT rules. Two separate tax events:
The disposal of Ethereum: CGT on any gain between your acquisition cost of the ETH and its value on the date of the purchase. The acquisition of the NFT: new asset acquired at the cost of the ETH used.
Active NFT collectors who buy multiple NFTs per month using Ethereum are generating a significant volume of CGT disposal events that must be tracked.
Record-Keeping for NFTs
NFT transactions are on-chain and therefore publicly verifiable — every purchase, sale, and royalty payment is recorded on the relevant blockchain. This actually makes record-keeping simpler than for off-chain transactions, provided you use tools that can import on-chain data.
For each NFT purchase and sale, record: the date, the NFT identifier (contract address and token ID), the amount paid or received in the relevant cryptocurrency, and the euro value at the transaction date.
For royalties, record each royalty payment with its date and euro value at the time of receipt.
Platforms like OpenSea, Magic Eden, and others provide transaction history exports. On-chain wallets can be imported into crypto tax software which will identify NFT-related transactions automatically. We cover the full record-keeping system — including software recommendations — in our guide to crypto CGT record-keeping in Ireland.
Revenue’s Developing Position
Revenue has not yet published specific NFT guidance, and the application of existing principles to the variety of NFT-related activities — particularly more complex structures like fractional NFT ownership, NFT-backed loans, and NFTs embedded in DeFi protocols — requires careful analysis.
This is an area where the law is genuinely still developing, and the correct position on some edge cases is uncertain. Professional advice specific to your NFT activity is important if you are involved in anything beyond straightforward purchasing and selling.
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.