Avoid high CGT by moving to another country?

leeewl

Registered User
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I recently started investing and was really surprised (ok, not really) by the high capital gains tax rate in Ireland. Especially when it comes to ETFs. At 41% plus a "deemed disposal" every 8 years is just nuts and really kills your profits.
So my question is quite simple, is it possible to avoid this by moving to another country like the UK (20% CGT) or Switzerland (0% CGT!!) after a few years investing in Ireland?

Scenario:
Working in Ireland for about 5 more years while investing in shares and ETFs. Move to another country, find a job and register as a tax payer there etc. You are now exempt from paying any CGT on sale of shares, dividends or "deemed disposal" to Irish government.

Just to give a few more details, my broker is Interactive Brokers and according to their page, it shouldn't be a problem to change the country of residence on my account.

I've used the search feature on this forum but could not really find a question like this. So any info would be appreciated.
Thanks!
 
Look at setting up an ICAV that is free from income taxes and CGT - Ireland is the biggest tax haven, stay where you are if you ask me... it's complex but potentially worth it if you have the cash to invest...

[broken link removed]
 
Look at setting up an ICAV that is free from income taxes and CGT - Ireland is the biggest tax haven, stay where you are if you ask me... it's complex but potentially worth it if you have the cash to invest...

[broken link removed]

Yes, if you’ve a nine figure sum to invest the ICAV route might be the way to go...
 
Yes, if you’ve a nine figure sum to invest the ICAV route might be the way to go...
I'll admit I wasn't aware the figure was so high, but there are other countries which have similar setups but I'm not going to reveal where... I'll let the OP do their research seen as they haven't done any other than throw their hands up in the air and say "I'll leave the country!" Being from Ireland is not a hinderance to building wealth...
 
I'll admit I wasn't aware the figure was so high, but there are other countries which have similar setups but I'm not going to reveal where... I'll let the OP do their research seen as they haven't done any other than throw their hands up in the air and say "I'll leave the country!" Being from Ireland is not a hinderance to building wealth...
I did spend a few days doing research and reading multiple threads on this forum. I guess as I'm totally new to this, I need to keep looking.
It's great to hear that being in Ireland isn't a hindrance but it does seem like it's harder to figure out how to invest properly compared to other countries.

Unless this thread is wrong it seems like buying UCIT ETFs isn't really the way to go at all?

Anyway, to answer my original question, yes, it is possible to not have to pay anything after you stop being "[broken link removed]".

Thanks, everyone
 

You do your investing in companies, shop around and find the right fit

You'll find that link by googling "Deloitte Tax Guides"

You need to do more research, that I can't help you any more than that... the clues are in the link - avoid the Caribbean tax havens, too much trouble
 
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You are taxed in the country you are resident in. So if you become tax resident where the tax is 0%, that is fine. For most people, moving country isn't an option given their home is Ireland. And moving country to avoid pay tax is pretty drastic step. If paying as little tax as possible is the driver, I would question why you are in Ireland at all given the high level of incomes taxes.


Steven
www.bluewaterfp.ie
 
UCIT ETFs isn't really the way to go at all?
Unfortunately, it's complicated. I think for a lot of investors if the ETF's were sensibly taxed they would be the way to go but as they're not you're left with a variety of options, none ideal. Direct shares - attractively taxed but you take on the stock-picking risk or if you want to pay someone to do that for you, the fees. Life-company-wrapped products - in many ways hassle-free and usually well diversified but again, the fees are high and you haven't solved the tax problem. Investment trusts - seem to me to be the least worst option but you are taking on some fund manager risk there and will have to do a deal of research about what to buy. If you have a boatload of money you can deal with a discretionary fund manager and access the ETF's domiciled offshore but then you're tied into high fees and have to weigh up whether that's worth it. It's a frustrating conundrum and there isn't an easy answer. I'd say you'll find an easier answer than leaving the country though! That's my take on it so far anyway and like you, I'm on the learning curve and am sure that most other posters here know a bit more about it than I do.
 
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