Non-Resident CGT Clearance Ireland for Selling Irish Property
If you’re not tax resident in Ireland and you’re selling Irish property, you’ll need Non-Resident CGT Clearance from Revenue before your solicitor can release your sale proceeds. This clearance ensures any Capital Gains Tax (CGT) due is properly paid. Without it, your solicitor cannot legally release the funds.
In this guide, we’ll explain:
- What the Non-Resident CGT Clearance process is
- Why solicitors must withhold funds until Revenue approval
- How it differs from a CG50 certificate
- What you need to do to get your funds released
What Is a Non-Resident CGT Clearance?
Under Irish tax law, non-resident individuals and companies must pay Capital Gains Tax (CGT) on the sale of certain Irish assets, usually land, buildings, or shares that derive value from Irish property.
When a non-resident sells Irish property, Revenue requires a clearance to confirm that the correct CGT has been declared and paid. Solicitors withhold sale proceeds until Revenue gives approval. This is known as a letter of no audit or non-resident CGT clearance letter.
CG50 vs Non-Resident Clearance — What’s the Difference?
These two processes are often confused, but they serve different purposes:
CG50 Certificate
- Applies to sales over €500,000 (€1 million for residential property)
- Prevents 15% of the sale price being withheld by the purchaser
- Applies to both residents and non-residents
Non-Resident Clearance
- Required only for vendors not tax resident in Ireland
- Managed through the solicitor, not the purchaser
- Involves withholding of the sale proceeds until Revenue approval
In some transactions, both may apply, but they are separate procedures.
Why Solicitors Withhold Sale Funds
Solicitors withhold funds to protect themselves and comply with Irish tax law. Under Sections 1034 and 1043 of the Taxes Consolidation Act 1997, a solicitor can be personally liable for unpaid CGT if they release funds before Revenue clearance is received.
To avoid this, they must follow Revenue’s procedure and wait until a clearance letter is issued or the 35-working-day period passes without a query.
Who Needs Non-Resident CGT Clearance in Ireland?
You will need Non-Resident CGT Clearance if you are not tax resident in Ireland and you are disposing of a chargeable Irish asset.
This commonly applies to:
- Non-resident individuals selling Irish property, land, or development sites
- Non-resident companies disposing of Irish property or property-rich assets
- Executors of estates where the deceased was non-resident at the time of sale
- Trustees selling Irish property on behalf of non-resident beneficiaries
If you fall into any of these categories, Revenue clearance is required before your solicitor can release the sale proceeds, even if no CGT ultimately arises after reliefs or losses.
How to Apply for Non-Resident CGT Clearance
Here’s what’s involved:
- Appoint an Irish Tax Agent
Non-residents must appoint an accountant or tax advisor in Ireland to act on their behalf. - Register for PPSN and CGT
If you don’t have one, your agent can help you obtain a Personal Public Service Number (PPSN) and register for CGT. - Prepare and File a CGT Return
Your tax agent calculates the gain (if any) and files Form CG1 for individuals. - Submit a Clearance Request via ROS (MyEnquiries)
The request should be submitted under Capital Gains Tax > Non-Residents. - Wait Up to 35 Working Days
If Revenue raises no queries, clearance is deemed granted, and the solicitor can release funds. - Receive a Letter of No Audit (If Issued Earlier)
If Revenue completes its review early, it issues a clearance letter directly.
Documents Required for Non-Resident CGT Clearance
To avoid delays, your agent must submit:
- Declaration of non-residence
- CGT computation
- Form CG1
- Contract for sale
- Details of property use
- Evidence that rental income was declared
- Proof of CGT payment or applied reliefs
- Client-agent mandate
How Long Does Non-Resident CGT Clearance Take?
Revenue typically processes clearance requests within 35 working days. If documentation is complete and no queries arise, clearance is automatic after that period.
However, missing documents or undeclared rental income can delay approval or trigger a compliance review.
Can You Avoid Non-Resident CGT Clearance?
No. If you are not tax resident in Ireland, Non-Resident CGT Clearance is mandatory where a chargeable disposal occurs. Revenue approval is required before your solicitor can legally release the sale proceeds.
While the clearance itself cannot be avoided, you can reduce delays by taking the right steps early:
- Appointing an Irish tax agent as soon as the sale is agreed
- Submitting complete and accurate documentation to Revenue
- Ensuring all prior Irish income, such as rental income, has been correctly declared and paid
Frequently Asked Questions (FAQ)
Do non-residents always need CGT clearance?
Yes, for disposals of Irish land or property valued over €500,000 since December 2016.
How long does CGT clearance take?
Up to 35 working days from Revenue receipt, though often faster with complete submissions.
Can a solicitor apply on behalf of a client?
Yes, solicitors commonly submit on behalf of vendors to meet contract conditions.
Does CGT clearance delay property sales?
It can if not planned early; start 6-8 weeks before closing to avoid holds.
Final Thoughts
If you’re selling Irish property while living abroad, Non-Resident CGT Clearance is essential to receive your proceeds. Appoint an Irish tax agent early, stay compliant, and prepare all documents in advance to avoid delays.
Need Help With Non-Resident CGT Clearance?
We assist non-resident vendors in obtaining CGT clearance quickly and efficiently. If you need support releasing your funds or managing your Irish tax obligations, contact us today for a consultation or learn more here.
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.
