Crypto Tax Tip: Offset Your Losses and Save on Your Tax Bill in Ireland
Share
With the rise and fall of cryptocurrencies, many Irish investors are finding themselves facing losses. But here’s the good news: those losses aren’t just painful — they can actually be valuable.
Under Irish tax law, you can offset capital losses against gains, potentially reducing your overall tax bill. Here’s how it works:
💡 What Is Capital Gains Tax (CGT) in Ireland?
Capital Gains Tax (CGT) in Ireland is charged at 33% on profits made from selling assets like shares, property, or cryptocurrency.
If you sell your crypto at a profit, CGT applies.
But if you sell at a loss, you can use that loss to reduce your tax on other gains.
🔁 How to Offset Crypto Losses
If you sold crypto assets at a lower price than you bought them, you’ve made a capital loss.
You can offset this against any capital gains in the same tax year (e.g., gains from stocks, property, or even other crypto).
Example:
• You made €2,000 profit on shares.
• You made a €1,200 loss on crypto.
• You only pay CGT on €800 (€2,000 – €1,200).
This brings your CGT liability down significantly.
🕒 Can You Carry Forward Crypto Losses?
Yes — if your losses exceed your gains, or if you had only losses, you can carry them forward to offset future capital gains.
✅ You must declare the loss to Revenue in the year it occurs.
💱 What If You Still Hold the Crypto?
You cannot claim a loss unless the asset has been disposed of. That means:
• Selling it for EUR (fiat currency)
• Swapping it for another cryptocurrency
• Using it to purchase goods or services
Just holding a coin that’s dropped in value doesn’t count — you need to actually sell, swap, or use it.
🧾 Reporting Crypto Losses to Revenue
You must report crypto losses on your CG1 form (Capital Gains Tax return), if you’re self-assessing.
Revenue will require:
• Description of the asset
• Date acquired & sold
• Amount received (proceeds)
• Purchase cost (cost basis)
✅ Keep accurate records of:
• Exchange screenshots
• Wallet addresses
• Transaction history
📅 CGT Deadlines in Ireland
Make sure you file on time:
• December 15th for disposals made between January 1 – November 30
• January 31st (following year) for disposals made in December
⚠️ Filing late can result in penalties and interest.
✅ In Summary:
• Crypto losses can reduce your tax bill
• You can offset them against current or future gains
• You must sell the asset to claim the loss
• Keep proper records and declare losses to Revenue