The €1,270 CGT exemption — what it is, what it isn't

The basics

• Rate: 33% on net gains.
• Exemption: €1,270 per individual, per tax year.
• Not transferable between spouses — each person gets their own €1,270.
• Use it or lose it — it doesn't carry forward.
• Applies to: individual stocks, crypto, gold, foreign property, business assets.
• Does NOT apply to: EU UCITS ETFs (those use 41% deemed-disposal — see the ETF guide).

How it actually works

The exemption is applied after netting gains and losses for the year:

(Total gains − total losses − €1,270) × 33% = CGT due

If your net result is a loss, the exemption goes unused — it can't be banked or applied to next year's gains. Losses themselves do carry forward.

Strategy 1: Realise €1,270 of gain every year

If you have a buy-and-hold portfolio sitting on unrealised gains, sell enough each year to lock in up to €1,270 of gain tax-free, then buy the position back. This resets your cost basis upward and bakes in the exemption permanently.

Watch out for the "4-week rule": if you sell at a loss and rebuy the same security within 4 weeks, Revenue disallows the loss. The rule cuts both ways — selling at a gain and rebuying within 4 weeks doesn't undo the gain (you still pay CGT on it), but you're best to wait the 4 weeks before rebuying to avoid wash-sale ambiguity. Source: Revenue: CGT.

Strategy 2: Spousal asset transfer before sale

Transfers between spouses or civil partners are CGT-free. If one spouse has the gains and the other has unused €1,270 exemption, transferring half the asset before sale lets both exemptions apply. That's €2,540 of gain shielded per year, fully legitimate.

Asset must be transferred properly (broker re-titling, contract, etc.) before the disposal — not after.

Strategy 3: Loss harvesting before year end

The CGT year ends 31 December. Late-year is when you reconcile:

• Sitting on a position at a loss? Selling it before year-end realises the loss to offset other gains.
• Sitting on gains and your portfolio also has losers? Pair them up — the losses cancel out gains, and your €1,270 still applies on top.
• Wait 4 weeks before buying the same security back, or the loss is invalidated.

Strategy 4: December disposals push the deadline

CGT payment dates are odd:

• Disposals 1 Jan – 30 Nov: payment due 15 Dec same year.
• Disposals 1 Dec – 31 Dec: payment due 31 Jan following year.

Selling on 30 November means you pay CGT 15 days later. Selling on 1 December means you pay 60 days later. Same gain, very different cash flow. If liquidity matters, the December window can buy you over a month of breathing room.

FIFO is mandatory — your cost basis isn't a choice

Revenue requires First-In, First-Out matching. If you bought the same stock at €10, then €50, then €80, and sell some shares, Revenue treats the sale as coming from the €10 lot first. You don't get to pick the highest-cost lot to minimise gain.

The CGT calculator applies this automatically and shows you which lots matched against each disposal.

Non-EUR purchases and disposals

If you bought shares in USD or GBP, you have to convert both the purchase price (using the rate on the buy date) and the sale price (using the rate on the sale date) into EUR before computing the gain. FX movement is part of the gain, not separate from it.

Practically: use the European Central Bank's daily reference rate (ECB historical rates), or the broker's statement if it provides one. The CGT calculator handles this conversion automatically once FX data is loaded.

Don't forget

Next

• CGT calculator — plug in your buys and sales, FIFO is automatic
• ETFs and Deemed Disposal — why your ETF gains use 41%, not 33%
• RSUs after vest — how the cost basis carries from vest to sale