📝 Description
In Ireland, the tax authority (Revenue Commissioners or simply Revenue) does not have a specific "crypto" law but has published clear guidelines applying existing tax laws. For the vast majority of individuals, cryptocurrencies are treated as assets subject to Capital Gains Tax (CGT).
You often have to pay the tax even before declaring your income! This guide explains these nuances and how to set up Waltio so you don't miss any deadlines.
Essential Crypto Tax Facts in Ireland
Category | Tax Rule |
Global Tax Rate | 33% (Capital Gains Tax - CGT) |
Exemption Threshold | €1,270 of net gains per year |
Crypto-to-Crypto Trades | Taxable (Considered a disposal) |
Loss Deduction | Yes (Can be carried forward indefinitely) |
Tax Payment | End of the current year (Mind the calendar!) |
💰 Calculation and Tax Rates: The 33% CGT
In Ireland, if you buy and sell cryptocurrencies personally, you are subject to CGT. The rate is fixed at 33% on the net profit (Selling Price - Purchase Price - Allowable Expenses).
🛡️ Personal Exemption
Every Irish taxpayer benefits from an annual capital gains exemption. The first €1,270 of net gains (across all assets: cryptos, shares, etc.) realized during the tax year are completely tax-exempt. Note: this exemption cannot be carried forward to the next year if unused.
📉 Losses and the "4-Week Rule"
Deduction: You can deduct your crypto losses from your capital gains. If you end the year with an overall loss, you can carry it forward indefinitely to future years.
The 4-Week Rule (Bed & Breakfasting): To prevent investors from selling at a loss solely to reduce taxes and immediately rebuying the same crypto, Revenue imposes the 4-week rule. If you rebuy the same cryptocurrency within 4 weeks of its sale, the loss from the first sale cannot be used to offset other gains (it will be linked to the new purchase cost).
🔄 Crypto-to-Crypto Operations (Trading)
Revenue Commissioners are strict: exchanging one cryptocurrency for another (e.g., selling Bitcoin to buy Cardano) is a taxable event. It constitutes the "disposal" of the first asset and triggers the capital gain or loss calculation at the second of the swap.
⚙️ How are these managed on Waltio?
Great news: Waltio's behavior is perfectly aligned with Irish law.
The software automatically considers every Crypto-to-Crypto exchange operation as taxable.
Your process: You have no manual action to perform for these operations. The engine will process your intermediate trades accurately.
🎁 Passive Income (Staking, Mining, Airdrops)
In Ireland, income generated from mining, staking, or airdrops does not fall under CGT (33%) at the time of receipt. It is considered "Miscellaneous Income." It is taxable in the year of receipt and subject to standard Income Tax, as well as potentially PRSI (Social Security) and USC (Universal Social Charge).
⚙️ How are these managed on Waltio?
To simplify basic accounting tracking, Waltio applies a different default methodology:
Passive income is marked as non-taxable upon receipt.
The software assigns them an acquisition value of €0.
Practical consequence: Taxation is deferred. You will only pay the 33% CGT upon resale, on the entire amount.
To be 100% compliant with Revenue (Declaration upon receipt): Manual action is required on Waltio. You must individually modify each transaction to enter its acquisition price (the market value in euros on the exact day of receipt). Thus, the operation will be counted as income for the current year, and this value will become your purchase price for future CGT.
✅ What Triggers Tax (Crypto ➔ Fiat)
Any "disposal" triggers the 33% CGT calculation:
Sale for fiat currency: Converting your cryptos into Euros (EUR), Dollars (USD), etc.
Payment for a good or service: Using your cryptos for a purchase is a disposal.
Making a gift: Giving cryptos to someone (other than your spouse) is considered a sale at market price!
📝 Declaration and Payment:
The tax year is the calendar year, but tax payment is due before the annual declaration.
1. Payment (Pay and File):
Gains between Jan 1 and Nov 30: CGT payment due by December 15 of the same year.
Gains between Dec 1 and Dec 31: CGT payment due by January 31 of the following year.
2. Declaration (Tax Return):
You must detail these gains the following year, by October 31 at the latest, using Form 11 (self-employed) or Form CG1 (PAYE employees).
Disclaimer: This guide is provided for informational purposes only. Irish legislation is strict and late payment penalties are high. Waltio does not provide tax or legal advice. We recommend consulting a certified tax advisor in Ireland.