Tax help for an Irish investor

Help
#1

Hi All,

I would appreciate a little bit of advise regarding tax. I’m from/live in Ireland and have recently set up my T212 account. I have decided to use 2 different investment strategies.

  1. Use ETFs for long term Investing. This will be around 80% of my investing.
  2. Buy/Sell stock with the hope to use the profit to re-invest.

From my research on the this, it’s not very clear the amount of tax I would be required to pay on any profit. Seems like I could be paying over 50% tax on dividends? Is tax the same for Irish based companies compared to EU based or is there anyway to keep taxes at a minimum? Would it be a better strategy to invest in a dividend paying company within an ETF rather than the ETF itself?

Sorry for all the questions but I’m new to investing. Any other tips or advice would be greatly appreciated.

Thank you in advance for the reply’s

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#2

My take on it is that we have arrangements with certain countries (I am living in Ireland too)
In some cases we might only have to pay 15% but there is alot more variables too this also.

I am still doing my own research and I have not invested yet. I hope someone more knowledgeable can weigh in here. But I do know should be tops 41% or I believe or 20% plus usc prsi if in 1st bracket ect. I would also like to know this even some things I looked up said alot of it can be left to enterpretation, so I am thinking even hiring an expert to just lay this out for myself.

#3

Hi Ryan,

That 15% is called a tax treaty and Ireland has it with countries such as USA. So if a company domiciled in America pays you a dividend then 15% is automatically taken off before you see any of it. We also have to pay our own dividend tax on what’s left over (depending on which tax bracket you fall into).

I’m still doing my own research but seeking professional advice is definitely the way to go. If you do I’d love for you to update this thread :blush:.
Also, this is an article I found a bit helpful. If you put Ireland into the search bar a few other articles will come up.

#4

Get an address up here in the North lads and make use of the special status. You can get a UK passport to say you are a UK citizen as can members of the UK do the same for an Irish Passport

#5

@Vince Are you aware of the Irish government kicking you in the balls every 8 years if you hold ETFs? You mentioned that 80% of your investing is in ETFs. I would probably look at moving your money elsewhere. If you hold an ETF, you have to pay 41% tax on profits every 8 years, even if you don’t sell. You basically have to pretend that you sold everything, and give Revenue tax on the pretend profits.

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#6

What investor information does Trading 212 report to the tax authorities in the investors resident country ?

#7

None I’d imagine. It’s the individuals responsibility to report tax.