CG50 Clearance Certificate: What Sellers of Irish Property Need to Know
If you’re selling Irish property worth more than a certain amount, the buyer may have to withhold part of the sale price, unless you get a CG50 Clearance Certificate from Revenue.
This certificate is an important step in many Irish property sales. Whether you live in Ireland or abroad, this guide explains:
- What a CG50 certificate is
- When it’s required
- Who needs to apply
- What documents are needed
- How long it takes
- How it differs from non-resident clearance
What Is a CG50 Certificate?
A CG50 certificate (officially “CG50A”) is a Revenue clearance confirming that the buyer does not need to hold back tax from the sale price.
Revenue issues it under Section 980 of the Taxes Consolidation Act 1997, which states that in certain property sales, the purchaser must hold part of the price and pay it to Revenue unless this certificate is provided.
In short, the CG50 helps Revenue make sure that any Capital Gains Tax (CGT) due on the sale is paid correctly.
When Do You Need a CG50?
You need a CG50 if:
- The asset is land, buildings, or certain Irish-based assets (like options or rights over land), and
- The sale price is over €500,000, or €1 million for residential property, and
- The seller is not a company.
Even if you live in Ireland, you may still need a CG50 for high-value sales.
If you don’t provide one, the purchaser must legally hold part of the funds and send it to Revenue.
What Happens If You Don’t Have a CG50?
Without a valid CG50, the purchaser is required by law to withhold part of the payment and send it to Revenue.
This rule applies even when the seller is fully tax-compliant.
Therefore, it’s always best to apply early to avoid any delays or withheld funds.
Who Applies for the CG50 Certificate?
Usually, the seller or their accountant or solicitor applies for the CG50 before the sale is completed.
Applications are submitted through Revenue’s MyEnquiries service on ROS.
You’ll need to:
1. Select Capital Gains Tax as the category
2. Choose the CG50 subcategory
3. Upload the required documents
Documents You’ll Need
Revenue generally asks for:
- A copy of the contract for sale
- Details of the property being sold
- The seller’s tax residency status
- A statement confirming if CGT applies
- Your PPSN or tax reference number
In some cases, Revenue may also request:
- A CGT computation
- Proof of acquisition costs, legal fees, or improvements
- Evidence for Principal Private Residence (PPR) relief, if you’re claiming it
Submitting these documents accurately helps your application move faster.
How Long Does It Take?
Revenue usually processes CG50 applications within 20 working days.
However, it can take longer if:
- Information is missing, or
- The seller has outstanding tax returns or balances.
As a result, it’s a good idea to apply as soon as contracts are signed. That way, you can avoid last-minute problems when closing the sale.
CG50 vs Non-Resident Clearance
It’s common for people to confuse these two processes.
Here’s the difference:
| CG50 | Non-Resident Clearance | |
|---|---|---|
| Applies to | All sellers (resident or non-resident) | Only non-residents |
| Purpose | Prevents the purchaser from having to hold funds | Allows solicitor to release held funds |
| Trigger | Sale price exceeds €500k (€1m for residential) | Seller is non-resident |
| Application made by | Seller, accountant, or solicitor | Seller’s tax agent |
In some cases, both may apply to the same transaction.
For example, a non-resident selling a high-value property may need both clearances to complete the sale.
Summary
If you’re selling Irish property worth over €500,000 (or €1 million for residential), you probably need a CG50 clearance certificate.
Without it, the purchaser must hold part of the sale price and send it to Revenue.
To avoid problems:
1. Apply early
2. Submit all documents correctly
3. Ensure your tax affairs are up to date
Need Help with Your CG50 Application?
We regularly help clients prepare and submit CG50 clearance requests to Revenue.
Our goal is to make sure your property sale runs smoothly and that no funds are withheld unnecessarily.
Contact Richard OShea Consultancy today to get help with your CG50 or any Irish property tax queries.
This article is intended for informational purposes only and should not be considered a replacement for professional advice. The author(s) disclaim any liability for actions taken or not taken based on the content of this document. It is recommended to seek tailored advice before making any decisions related to the topics discussed in this article.
