Hi,
I'm new to the forum and I have a question related to ETF taxation in Ireland.
If you're an Irish resident but not domiciled (e.g. expat, temporary worker) this means that foreign income and disposal of foreign assets are not taxable in Ireland as long as they are not remitted to Ireland (i.e. don't transfer any income/gains to an Irish bank account). This seems to be well established and I've read it and heard it from multiple sources, but let me know if I'm missing something.
For US domiciled ETFs, like Vanguard's:
Am I correct in assuming that this means that if you hold an ETF domiciled in the US you are actually not liable to any CGT on disposal as long as the money never reaches Ireland and you're also not liable to income tax on dividends because, again, assuming you just reinvest the dividends or never bring the money into the country?
For EU domiciled ETFs, like BlackRock iShares, Deutsche Bank, Amundi, etc, which are usually based in IE, LU or FR:
What is the treatment for the UCITS (Europe) domiciled ETFs? If one buys an ETF based in LU, for instance, does that mean that because as a non-domiciled resident you're not liable to the exit tax of 41% (instead of the CGT like the above example) as long as you just reinvest or never bring the money into the country? What is the rule regarding where the asset gain is made, is it the domicile of the ETF? In my example, because the fund is domiciled in Luxembourg this means that for instance, the same rules as for the above US domiciled ETFs would apply in regards to non-domiciled residents?
This would mean that an IE domiciled fund would possibly be treated differently and, in fact, in this case, even a non-domiciled resident would be subject to the 41% exit tax that applies to UCITS ETFs when selling their position at a gain.
Has anybody ever had this question before?
It's a lot of questions in one post, I suppose, but I've researched the subject a lot and I can't find anybody that asked about this particular case.
Cheers