CGT Annual Exemption (Ireland)

Ireland levies Capital Gains Tax (CGT) at 33% on chargeable gains. However, each individual has an annual personal exemption of €1,270 — the first €1,270 of gains in any tax year is tax-free. This exemption is not transferable between spouses and cannot be carried forward.

Application to prediction markets

If Revenue (the Irish tax authority) classifies prediction market gains as chargeable gains, the first €1,270 of profit each year is exempt. On a €5,000 gain, you'd pay 33% on €3,730 = approximately €1,231.

Payment deadlines

Ireland has an unusual CGT payment schedule:

• Initial period (Jan 1 – Nov 30): CGT due by December 15 of the same year
• Later period (Dec 1 – Dec 31): CGT due by January 31 of the following year

This means Irish traders may need to pay CGT before filing their annual return.

Gambling vs. CGT

Ireland does not tax gambling winnings for individuals. If prediction markets are classified as gambling rather than financial instruments, profits could potentially be tax-free. However, Revenue has not issued specific guidance on prediction market contracts.

Comparison with other tax-free allowances

Ireland's €1,270 annual CGT exemption is small compared to other countries:

• UK: £3,000 annual CGT exemption (2024/25) — about 2.5× Ireland's
• Germany: €1,000 Sparerpauschbetrag — slightly smaller, but covers all capital income
• Luxembourg: €500 speculative gains exemption — even smaller
• Netherlands: €57,000 heffingvrij vermogen — much larger but works differently (asset threshold vs. gains exemption)

For active prediction market traders with significant gains, Ireland's €1,270 makes a minimal impact on the total tax bill.

Self-assessment obligations

Ireland uses a self-assessment system. You must file a Form 11 (for self-assessed taxpayers) or Form 12 (for PAYE workers with additional income) to declare prediction market gains. Revenue's myAccount or ROS (Revenue Online Service) portal handles electronic filing.

Frequently asked questions

If prediction market profits are gambling in the UK, are they also gambling in Ireland?

Not necessarily. Each country has its own tax rules and classification criteria. While both Ireland and the UK exempt gambling winnings, the definition of "gambling" varies. Revenue (Ireland) and HMRC (UK) may classify prediction market contracts differently.

What rate applies above the €1,270 exemption?

33% CGT on all chargeable gains above the exemption. Ireland's 33% CGT rate is among the highest in Europe — higher than Germany (~26.4%), Italy (26%), and Sweden (30%), but lower than Denmark's top rate (42%).