Does Irish expat have exposure to Irish tax by holding Irish based ETFs?

[Right Winger]

Does a non-resident, non ordinarily resident, Irish domiciled individual have any exposure to Irish income or capital taxes by holding ETFs that are hosted in Ireland? (ISIN code starts with IE)

Asking for a nephew who's living for several years in the UK and has lots of such funds in his ISA.

 

[Horatio]

I think that's a no. He's not ordinarily resident & he's not tax resident. His dues if any are payable to HMRC.

 

[Marc]

Does a non-resident, non ordinarily resident, Irish domiciled individual have any exposure to Irish income or capital taxes by holding ETFs that are hosted in Ireland? (ISIN code starts with IE)

Asking for a nephew who's living for several years in the UK and has lots of such funds in his ISA.

No, U.K. resident subject to U.K. tax rules and no tax on funds held in an ISA.

However if you move back to Ireland there are no ISAs and therefore the underlying investments are taxed under Irish law.

This would give rise to a charge to Irish exit tax at 41% on income and gains from original purchase.

Therefore really important to sell ISAs before moving back to Ireland

 

[Right Winger]

Thanks @Horatio and @Marc , that's helpful.