Retiring from farming is a big step. Whether you’re handing over the land to your children or leasing it out, there are serious tax considerations to take into account. At Eoin O’Gorman Solicitors, we, together with your Tax Advisory Accountants, guide farmers through the legal and tax implications of farm retirement in Ireland – helping you protect your legacy and avoid costly surprises.

What Does Farm Retirement Involve?

In Ireland, retirement from farming usually means either:

  • Transferring your farm to a successor (often a family member), or
  • Leasing your land long-term while stepping away from active farming duties.

Both options come with potential tax consequences – but also with significant reliefs if handled properly.

Capital Gains Tax (CGT) – Retirement Relief

If you transfer your farm to a family member, it’s technically a “disposal” of an asset for Capital Gains Tax purposes. Thankfully, Retirement Relief may reduce or eliminate your CGT liability.

Read more about Retirement Relief on Revenue.ie

Key Eligibility Criteria:

  • You must be 55 years or older at the time of disposal.
  • You must have owned and farmed the land for 10+ years.
  • Transfers to children usually get full relief, no matter the farm’s value.
  • Transfers to non-children have thresholds of €750,000 (age 55–65) and €500,000 (over 66).

Even leasing your land before retirement might not disqualify you – but leases must meet Revenue conditions.

Capital Acquisitions Tax (CAT) – The Successor’s Tax Bill

Your child or other successor might face Capital Acquisitions Tax (CAT) on the gift or inheritance of the farm. However, Agricultural Relief can reduce this liability by 90%.

Details on Agricultural Relief from Revenue.ie

Conditions:

  • The beneficiary must be a “farmer” for tax purposes (the 80% rule).
  • They must actively farm the land or lease it to an active farmer.
  • A 6-year clawback applies if these conditions are broken.

Stamp Duty – Reliefs for Young Farmers and Family Transfers

Stamp Duty can be reduced or eliminated in some circumstances:

  • Young Trained Farmer Relief: Full exemption if the person is under 35, has approved agricultural training, and commits to farming for 5 years.
  • Consanguinity Relief: A reduced 1% rate for family transfers instead of the standard 7.5%.

Learn more about Stamp Duty Reliefs for Young Farmers

These reliefs are valuable but can be lost if paperwork or eligibility conditions are not met, so professional guidance is vital.

Long-Term Leasing – An Alternative to Selling

Many farmers choose long-term leasing instead of transferring ownership. If the lease is for 5 years or more, you could earn tax-free rental income of up to €40,000 annually, depending on the lease length.

Revenue guidance on leasing farmland

This is a flexible option for farmers looking to step back without giving up ownership of the lands.

Legal Guidance Makes All the Difference

Farm retirement is about more than just stepping away – it’s about preserving your life’s work, supporting the next generation, and managing your tax liabilities wisely.

At Eoin O’Gorman Solicitors, we understand the unique needs of farming families. We offer tailored legal and tax advice to help you plan your retirement with clarity and confidence.

Need Advice on Farm Retirement?

Contact us today for expert advice on farm retirement, succession planning, and tax reliefs.

📧 Email: info@ogormansolicitors.ie
📞 Phone: 053-9140040
🌐 Website: www.ogormansolicitors.ie