Do Non-Residents Need Capital Gains Tax Clearance When Selling Irish Property?

Understanding CGT Clearance Rules for Non-Residents under Irish Tax Law

When a non-resident individual sells property in Ireland, it’s common for the solicitor handling the transaction to ask for “CGT clearance” from Revenue before releasing the sale proceeds. This request is often framed as a standard or mandatory step. However, the actual legal requirement to obtain clearance depends on the circumstances—most importantly, whether or not there is a capital gain.

In this article, we clarify the rules around CGT clearance for non-resident vendors, explain when it is and isn’t required, and outline how to deal with clearance in practice.

What Is CGT Clearance?

CGT clearance refers to a process where Revenue confirms that any capital gains tax due on a sale of Irish property by a non-resident has been dealt with, allowing the solicitor to release the proceeds to the vendor with confidence.

This process is influenced by two key provisions of Irish tax law:

  • Section 1043 TCA 1997 provides that the provisions of Section 1034 TCA 1997, which allow Revenue to assess income tax on a representative of a non-resident, also apply to Capital Gains Tax, with any necessary modifications.

  • In effect, this allows Revenue to assess and recover unpaid CGT from a representative (such as a solicitor) acting for a non-resident vendor.

This does not create an automatic personal liability, nor does it impose a direct duty to obtain clearance in every case. Rather, it empowers Revenue to pursue the representative for unpaid CGT where a gain has arisen and tax has not been paid.

Who Does This Apply To?

These provisions apply where:

  • The vendor is non-resident and non-ordinarily resident in Ireland, and

  • The asset sold is a “specified asset” under Section 29(3) TCA 1997—including land, buildings, mineral rights, and certain unquoted shares deriving value from Irish land.

When Is Clearance Actually Required?

The need for clearance depends on whether a capital gain arises:

1. If There Is a Gain

  • Yes, CGT clearance is required.

  • The vendor must submit a CGT return and pay any tax due.

  • Supporting documents must be submitted to Revenue, and a clearance letter is issued once Revenue is satisfied.

2. If There Is a Loss

  • No, clearance is not required.

  • This is confirmed in Revenue’s Tax and Duty Manual Part 45-01-05, page 12, Scenario 1:

"No gain arises on this disposal. As such, sections 1034/1043 TCA 1997 do not apply. No clearance is required as no gain has arisen."

Despite this, some solicitors may still request confirmation that the transaction has been reviewed, even if there is no liability. In that case, a tax adviser’s letter or voluntary submission can help satisfy internal compliance requirements.

The 35 Working Day Rule – Why It Matters

Where a gain arises and clearance is required, Revenue has 35 working days from the date of receiving a complete submission to either issue a clearance or raise queries. This is governed by Section 980(8) TCA 1997, and further explained in Tax and Duty Manual Part 45-01-05, Section 5.1:

"Where Revenue does not raise a query within 35 working days of receipt of the relevant documentation, Revenue clearance is deemed to apply."

This timeline is critical in practice: if the submission is incomplete or inaccurate, Revenue may raise queries—even on the 34th working day—which resets the clock entirely. That means the 35-day countdown starts again from the date Revenue receives your response.

Therefore, it is crucial that the initial submission is clear, correct, and fully documented. Delays in clearance can hold up release of funds, sometimes significantly, where the solicitor is unwilling to proceed without formal confirmation from Revenue.

Note: if the sale results in a loss, and no clearance is required, this timeline does not apply. However, some vendors may still wish to engage with Revenue on a voluntary basis for documentation purposes.

What Documents Are Needed for a Clearance Submission?

Where a clearance submission is necessary, the following documents should be included:

  • Appendix 1: Non-Resident Vendor Declaration (signed)

  • Transaction Advisory Notification (confirming agent appointment)

  • Form CG1 (manually completed, if not using ROS)

  • CGT Computation (detailing base cost, sale proceeds, gain or loss)

  • Contract for Sale

  • Property use disclosure (PPR or rental)

    • If the property was let, evidence that all Irish rental income was declared and taxes paid

Submissions are made via ROS MyEnquiries, selecting:

"Enquiry relates to: Capital Gains Tax (CGT)" → "More specifically: Non-Residents."

Voluntary Filing to Record a Loss

Even where no gain arises, and clearance is not required, vendors may still choose to file a CGT return voluntarily in order to:

  • Formally record the transaction, and

  • Preserve the capital loss for potential future use against Irish gains.

However, this adds complexity—particularly where Principal Private Residence (PPR) Relief applies. In such cases, the vendor must document the period of occupation and apportion any gain or loss accordingly. This often requires gathering records from many years ago and may not always be straightforward.

That said, filing a voluntary return without seeking full Revenue clearance can be a practical way to memorialise the transaction and retain a clear paper trail, especially for clients with ongoing or future Irish tax exposure.

Conclusion

Non-residents selling Irish property are not always required to obtain CGT clearance. The key factor is whether the sale gives rise to a taxable gain. Where there is no gain, no legal obligation to seek clearance arises.

Where clearance is required, the 35 working day timeline is critical—submitting the correct documents first time is essential, as even a late-stage query will restart the clock and delay the release of funds.

For those with a loss, voluntary filing may still be worthwhile, but comes with its own administrative burden. Clear advice, careful documentation, and an early understanding of the process can help all parties—vendors, advisers, and solicitors—manage the transaction smoothly and confidently.

Need Help with CGT Clearance?

If you are a non-resident selling Irish property and need assistance with the CGT position or the Revenue clearance process, or if you are a solicitor acting on behalf of a client and require technical tax support, feel free to get in touch.

We assist with:

  • Determining whether clearance is required

  • Preparing and submitting Revenue clearance requests

  • Drafting CGT computations and supporting documentation

  • Responding to solicitor queries and Law Society requirements

You can also download our Non-Resident Vendor Declaration (Word format) below to include in your submission:

Brendan BradyComment