Last edited: Jun 27, 2016 Thread closed as it's replaced by this one The Tax Treatment of ETFs for Irish residents This applies to ETFs only. I have excluded discussion of Investment Trusts and EU unit linked funds(SICAVs), as they merit separate threads. The attached article by Kieran Twomey is well worth reading. The tax situation is not clear cut and people have got contradictory answers from the Revenue 1. There are two types of ETFs "Good" ETFs are based in an EU country or a country which has a double taxation treaty with Ireland. All other ETFs are bad ETFs. 2. A bad ETF is taxed like a share. Dividends will be subject to income tax. Any gains will be subject to the Capital Gains Tax regime. As this is well understood, the rest of this thread is about the Good ETFs which are far more common. 1.Good ETFs are subject to the gross roll up regime 2. Annual payments are subject to 33% ( or is this also 41%?) 3. Exit tax is payable on the gains at deemed disposal and at actual disposal, currently at 41%. What does this mean? If you get a dividend from an ETF, you should declare it as a distribution and pay exit tax of 41%. When you cash in the fund, you must pay 41% exit tax on the gain. After 8 years, you must deem yourself to have made a disposal and you must pay 41% exit tax on the gain.