Non-Resident Vendor Clearance in Ireland: What the New 31% CGT Rate Means
Updated guidance for non-residents selling Irish property and the solicitors handling their transactions.
Ireland’s standard Capital Gains Tax (CGT) rate has fallen from 33% to 31% for most disposals made on or after 7 October 2026. This change matters to non-residents who sell Irish property. However, it does not remove the need to check Revenue’s vendor clearance requirements.
Vendors and solicitors should check the new rate and the documents Revenue may need before a sale completes.
Revenue also updated its non-resident vendor clearance guidance in May 2026. The update explains what to do when a property was rented during ownership. This article covers the main points for vendors and solicitors.
What Is Non-Resident Vendor Clearance in Ireland?
Non-resident vendor clearance may apply when someone who lives outside Ireland sells certain Irish assets, including land and buildings.
The process often involves a CG50A Capital Gains Tax Clearance Certificate, also called a Letter of No Audit. Depending on the sale, the vendor or their representative may need to apply to Revenue for clearance. This can help the buyer avoid the relevant withholding requirement.
Under section 980 of the Taxes Consolidation Act 1997, the buyer may have to withhold 15% of the purchase price if the clearance requirements are not met. This can reduce the amount the seller receives at completion.
Vendors can help avoid delays by checking the clearance requirements and gathering the documents early.
For more detail on the process and the role of solicitors, read our guide to CGT Clearance for Solicitors: Letter of No Audit Guide.
Ireland’s CGT Rate Has Fallen From 33% to 31%
Budget 2027 announced a reduction in the standard CGT rate from 33% to 31%. The new rate applies to most disposals made on or after 7 October 2026.
The change may affect non-residents who sell Irish property. Non-resident individuals can owe Irish CGT on gains from Irish land and buildings.
The lower rate does not apply to every gain. Development land remains subject to the 33% rate.
CGT applies to the taxable gain, not the full sale price. The calculation may include the purchase cost, sale proceeds, allowable expenses, available losses and any relevant reliefs or exemptions.
The correct rate depends on the disposal date and the type of asset. Check the treatment before calculating the tax due.
Vendors should also check when they must pay CGT. Our guide to CGT preliminary tax and payment deadlines in Ireland explains the payment rules.
Does the New CGT Rate Change the Clearance Process?
The rate reduction does not replace the non-resident vendor clearance process.
Vendors and solicitors should still check whether Revenue requires a clearance request. They should also confirm which supporting documents to provide. The CGT rate determines how the gain is taxed. Clearance deals with the process required for the sale.
The requirements depend on the transaction, the property’s use and the vendor’s tax position.
If CGT is due, check the tax position and arrange payment as required. Revenue’s guidance also explains the payment timing for non-resident individuals disposing of specified assets.
What Documents and Information May Be Required?
The documents needed will depend on the sale. Vendors and solicitors should review the following:
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Details of the property and proposed sale.
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Purchase and sale details needed to calculate any taxable gain.
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How the vendor used the property during ownership.
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Rental income details and relevant Irish tax returns, where applicable.
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The vendor’s tax position and any CGT due.
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Any further information requested by Revenue.
Complete, consistent information can help Revenue review the application. If Revenue asks for more details, the process may take longer.
Solicitors should check the property’s history early in the conveyancing process, rather than waiting until completion is close.
What If the Property Was Rented During Ownership?
Revenue’s updated guidance from May 2026 clarifies this point.
A vendor must submit a clearance request if no chargeable gain arises but the property was rented during ownership.
If no clearance request is required, the vendor should give the solicitor written confirmation that they did not rent out the property during ownership.
If the property was rented, the vendor must also consider the Irish income tax position. Revenue’s guidance covers rental income information and confirmation that relevant returns were filed and liabilities paid.
So, calculating CGT alone may not be enough. The property’s rental history can also affect the steps needed before the sale completes.
What Should Non-Resident Vendors and Solicitors Do Before Completion?
Before the sale proceeds, vendors and solicitors should:
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Confirm the disposal date. This helps determine the correct CGT rate.
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Check the asset type. Confirm whether the standard rate applies or whether a different rate applies, such as the rate for development land.
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Check the clearance requirement. Consider the property, how it was used and the vendor’s circumstances.
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Review the rental history. Check whether the property was rented during ownership and whether the relevant income tax obligations have been met.
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Gather supporting documents. Prepare the sale details, tax calculations and information Revenue may request.
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Allow time for Revenue queries. Start early so you can respond to requests before completion.
Check Revenue’s current guidance against the facts of the individual sale.
Need Help With Non-Resident Vendor Clearance?
Richard O’Shea Consultancy assists non-resident vendors and solicitors with Irish CGT clearance for qualifying property sales.
Our Non-Resident CGT Clearance service can help you check whether clearance may be required, identify supporting documents and manage the Revenue application process.
Final Thoughts
Ireland’s standard CGT rate has fallen to 31% for most disposals, but non-resident vendor clearance remains a separate issue.
Vendors and solicitors should confirm the applicable rate, check the property’s ownership and rental history, and establish what Revenue needs before completion.
For more context, read our article on non-resident CGT clearance when an estate sells Irish property.
The rate change and Revenue’s updated guidance make it worth reviewing the tax position early. This can help reduce uncertainty and avoid unnecessary delays.
Disclaimer: This article provides general information and does not constitute tax or legal advice. The applicable CGT rate and clearance requirements depend on the facts of the disposal. Always consult Revenue’s current guidance and obtain professional advice where necessary.
Frequently Asked Questions
What is the CGT rate in Ireland from 7 October 2026?
The standard CGT rate is 31% for most disposals made on or after 7 October 2026. Development land remains subject to a 33% rate.
Does the new 31% CGT rate apply to non-residents selling Irish property?
The reduced standard rate may apply to a qualifying disposal by a non-resident where Irish CGT is chargeable. The applicable rate depends on the disposal date and the type of asset.
Does a non-resident always need a CG50A clearance certificate?
Not every transaction has the same requirements. The vendor and solicitor should establish whether a clearance request is required under Revenue’s guidance for the particular disposal.
Is clearance required if no CGT is payable?
The answer depends on the circumstances. Revenue’s updated guidance confirms that a clearance request is required where no chargeable gain arises but the property was rented during ownership. Where no clearance request is required, written confirmation that the property was not rented should be provided to the solicitor.
What happens if the required clearance is not available?
Where the relevant requirements under section 980 are not satisfied, the buyer may have to withhold 15% of the purchase price. Vendors should establish the clearance position early to help avoid delays and uncertainty over the proceeds available at completion.
