Crypto Taxation in Ireland

How does Revenue classify cryptocurrency for tax purposes?

Revenue Commissioners apply no special tax regime to cryptocurrency. The official position, set out on revenue.ie, is that "there are no special tax rules for cryptocurrencies or crypto-assets" -- existing income tax, CGT, and corporation tax rules apply according to the nature of each transaction (Revenue Commissioners [SC1]). The detailed technical treatment is published in Tax and Duty Manual Part 02-01-03, "Taxation of crypto-asset transactions," which Revenue updates as new transaction types emerge. The starting point is whether a receipt or disposal is a capital event (CGT) or a revenue event (income tax); that classification drives the applicable rate and reporting form.

What CGT rate applies to crypto disposals, and what counts as a disposal?

For individuals holding crypto as an investment asset, each disposal is a chargeable event under Part 19 of the Taxes Consolidation Act 1997. The flat CGT rate is 33% on chargeable gains above the annual personal exemption of EUR 1,270 per individual per tax year under Section 601 TCA 1997 (Revenue Commissioners [SC2]). The exemption is not transferable between spouses or between years, but each spouse holds their own EUR 1,270 allowance separately.

The following are all treated as disposals that can trigger a CGT liability:

• Selling crypto for euros or other fiat currency
• Swapping one cryptocurrency for another -- each crypto-to-crypto trade is a disposal of the given-up asset at its euro market value at the time of the swap, and a new acquisition of the received asset at that same euro value
• Spending crypto to purchase goods or services -- using bitcoin or any other crypto to pay for something is a disposal at market value
• Gifting crypto (except transfers between spouses or civil partners, which are generally exempt)

Transfers between wallets an individual controls themselves are not disposals provided those transfers are clearly documented. Buying crypto with euros is also not a taxable event -- it establishes the cost base for any future disposal.

The cost-identification method Revenue accepts is First In First Out (FIFO): when disposing of units from a holding, the cost of the earliest-acquired units is matched first. An exception applies under Section 581 TCA 1997 where assets of the same type are bought and sold within four weeks: those matched units use the most-recent acquisition cost rather than FIFO, to prevent artificial loss creation through quick-turnaround trades (Revenue Commissioners [SC2]).

How is mining and staking income taxed?

Revenue taxes mining and staking rewards as income at the euro fair market value of the tokens on the date they are received, not at the point of any later conversion or sale. The applicable income-tax treatment depends on the scale of the activity:

• Trading-scale mining -- where the activity meets the badges-of-trade test (regularity, organisation, commercial purpose), block rewards are Schedule D Case I trading income. Income tax applies at 20% on income within the standard-rate band and 40% above it. Universal Social Charge (USC) applies at graduated rates up to 8% on employment income, rising to an 11% surcharge rate for self-assessed individuals with income above EUR 100,000. PRSI Class S of 4% also applies, making the combined marginal rate for a higher-rate self-assessed earner approximately 55%. Allowable deductions include electricity costs and capital allowances on mining hardware (Revenue Commissioners [SC1]).
• Hobbyist or small-scale mining -- treated as Schedule D Case IV miscellaneous income at euro fair market value on receipt, with no deductions available against the gross receipt.
• Staking rewards -- whether earned through direct proof-of-stake participation, third-party staking services, or DeFi protocols, staking rewards are taxable as income at fair market value on receipt (Revenue Commissioners [SC1]). A subsequent disposal of the same staking-reward tokens is a separate CGT event, with the cost base set at the euro value that was already brought into income on receipt -- Revenue does not double-tax the same appreciation twice, but each stage is separately assessable.

Summary: key rates, thresholds, and deadlines

When is CGT due, and which forms are used?

Ireland's CGT operates on a two-period payment system. Gains on disposals made between 1 January and 30 November must be paid by 15 December of the same calendar year. Gains on disposals made in December must be paid by 31 January of the following year. Payment is made through Revenue's Online Service (ROS) or myAccount portal (Revenue Commissioners [SC2]).

The filing deadline for the self-assessment return is 31 October of the year after the disposal, which is a separate obligation from the earlier payment dates. Late payment attracts an interest charge; a late return attracts a penalty.

Form CG1 is the standard CGT return for individuals who are PAYE workers or those who do not otherwise file an annual income-tax return. Form 11 is used by self-assessed individuals -- those with trading income from mining or significant staking activity, or those who already file annual self-assessment -- and it covers both income tax and CGT in one return (Revenue Commissioners [SC2]).

Record-keeping is essential: Revenue requires documentation of each transaction including acquisition date and euro cost, disposal date and euro proceeds, the euro market value at each crypto-to-crypto swap, and wallet-address evidence for intra-wallet transfers. Records must be retained for at least six years from the end of the relevant tax year.

For a broader overview of Irish tax obligations, see the Ireland country overview. Crypto holdings are global and rules evolve quickly -- consult a qualified Chartered Accountant Ireland or CPA Ireland member with experience in digital assets before filing.