ETF 41% deemed disposal rule if moving abroad

[DonegalTown]

Hello
I have a question and wonder if anyone can shed a bit of light please.

My situation:

I bought a number of rollover ETFs 5 years ago (AVC on the pension are already at the maximum level).
These ETFs are the ones taxed @ 41% on the deemed disposal rule after 8 years.
Anyway at the end of 2025 I will be retiring and from 2026 plan to spend most of the calendar year (September-April) in
the south of Spain where I own an apartment and return to Ireland only for the 4 months of the "summer" May-August, .
This will make me tax resident in Spain, where the tax on the same ETFs is 19% on CGT when selling, no deemed disposal rule.
I wonder if I will still have to worry about any Irish tax on this, since as I understand for the first 3 years hence from 2026 to 2028
I will still be considered ordinary resident in Ireland and would have to pay the deemed disposal tax. Is this correct ?

Thanks!!!

 

[dublin67]

You will need to look at the tax treaty. The treaty provision will override any provision relating to the ordinarily tax resident. I'd guess that the treaty will give the taxing rights to Spain once you are resident there.

 

[DonegalTown]

Thanks Dublin67, yes it looks like all the EU countries have this double taxation treatment that overrides the rule of the non ordinary residence for 3 years when you move abroad. I was just talking to my accountant in Spain today since I have to pay the local city council taxes for my apartment through him and brought up the issue about this 41% deemed disposal after a few years. Not my case since I will move before the 8 years are over, but if someone today pays the deemed disposal tax of 41% leaving the rollover ETFs invested, moves to Spain and in a few years he will sell the ETFs while tax resident in Spain, it would be very difficult to explain the deemed dispoal scenario to the Spanish tax authorities since they would expect that a investor pays the full 19% on the profits even if 41% deemd disposal was paid already in Ireland.

Thanks !!