Ireland guide
Principal Private Residence relief explained
Principal Private Residence relief exempts the gain on a house that was your only or main residence for the whole time you owned it. Where it was your home for only part of the period, the exempt share is the years occupied plus the final 12 months, divided by the years owned. The relief covers the house and up to one acre of grounds, and excludes any development value.
| Relief | Full exemption where it was always your home |
| Final period always counted | 12 months |
| Land limit | One acre (0.405 hectares) |
| Partial relief formula | (years occupied + 1) / years owned |
| Excluded | Development value |
When is a sale fully exempt?
Where the property was your only or main residence for the entire period of ownership, and the grounds do not exceed one acre, the gain is exempt and no capital gains tax arises. Nothing needs to be paid, though the disposal may still need to be returned.
How is partial relief calculated?
Relief is the gain multiplied by the qualifying period, divided by the total period of ownership. The qualifying period is the time you actually lived there as your main residence, plus the final 12 months of ownership, which always count provided the property was your main residence at some point.
The final period exists so that someone who moves into a new home before selling the old one is not penalised for the gap.
Which absences still count as living there?
Certain periods away are treated as occupation: any period during which all the duties of your employment were performed outside the State, and up to four years where your employer required you to live elsewhere. Time in a hospital, nursing home or convalescent home, or in a fee-paying retirement home while the house stood empty, also counts.
What about a large garden or development land?
The relief covers the house and grounds up to one acre, excluding the site of the house itself. Where the property is worth more than its value as a home because it has development potential, that extra development value is outside the relief and remains chargeable.
Worked example: lived in for 10 of 14 years
| Sale price | €400,000 |
| Less purchase price | −€250,000 |
| Gain | €150,000 |
| Less PPR relief for 132 of 168 months | −€117,857 |
| Chargeable gain | €32,143 |
| Less personal exemption | −€1,270 |
| Estimated CGT at 33% | €10,188 |
Relief months are the 120 months lived in plus the final 12 months.
Try your own figures in the Ireland capital gains tax on property calculator.
Common questions
Do I pay CGT when I sell my home in Ireland?
Usually not. If the house was your only or main residence for the whole period you owned it and the grounds are within one acre, Principal Private Residence relief exempts the gain entirely.
Does the last year of ownership always count?
Yes. The final 12 months of ownership are treated as occupation, as long as the property was your main residence at some point during the period you owned it.
Can a couple claim PPR on two houses?
No. A married couple or civil partners can have only one principal private residence between them for any given period.
Does renting a room affect the relief?
Renting under the rent-a-room scheme does not normally restrict the relief for the house as a whole. Letting a separate self-contained part can restrict it, so check the position before selling.
This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with Revenue (revenue.ie) or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.
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