Investment Diversification and Tax Concerns: ETFs for Unemployed Spouse in Ireland

Hey folks,

I've been on PAYE for the past few years, and my wife is currently unemployed. We moved to Ireland three years ago, and during this time, I've been consistently investing in ETFs using IBKR. Given our circumstances, where my wife doesn't have any income and isn't registered for Form 11 or 12, I'm looking to diversify our investments across both our accounts.

The idea is to send a monthly sum to her, allowing her to invest in ETFs from her separate account. This approach could provide some added security, so that in case of any financial disruptions or security breach it would be more safe. I'm even considering the possibility of using two different brokerages for further diversification.
However, my main question revolves around potential tax implications. If we proceed with purchasing ETFs for her, would this create any complications? Do we need to worry about her having to fill out a tax return, specifically Form 11? I understand the concept of deemed disposal and the 8-year timeframe, but my concern is more about the process of declaring these purchases.

Looking forward to hearing your insights and experiences. Thanks in advance!

Asking this question in isolation from your other post makes no sense.
If you're not Irish, and not planning to stay in Ireland, your tax concerns are different to an Irish domiciled & resident person.

noonamer said:

Do we need to worry about her having to fill out a tax return, specifically Form 11?

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Married, with 1 income, I hope you've had the wisdom to be jointly assessed for income tax, so it's a joint return you should be making already.

RedOnion said:

Asking this question in isolation from your other post makes no sense.
If you're not Irish, and not planning to stay in Ireland, your tax concerns are different to an Irish domiciled & resident person.

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Sorry for missing the context,
yeah, but we still probably remains in Ireland for next 1-2 years, as we are awaiting for a newborn now

RedOnion said:

Married, with 1 income, I hope you've had the wisdom to be jointly assessed for income tax, so it's a joint return you should be making already.

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oh, I just realized that, it is a good point. Thanks!

I was trying to research here, but is there a possibility to declare ETF purchase within form 12 (as a PAYE)? or there is no need, I see it is a bit controversial even in here.

noonamer said:

as we are awaiting for a newborn now

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Congratulations. Get all the sleep you can now!

noonamer said:

is there a possibility to declare ETF purchase within form 12 (as a PAYE)?

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No, the reason being that acquiring an ETF makes you a 'chargeable person', and therefore need to submit a Form 11.


But you need to get some advice on investment strategies as a non Irish domiciled person, taking into account the tax treatments in your country of domicile and the country you plan to be in when you cash in the investments.

RedOnion said:

Congratulations. Get all the sleep you can now!

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hah, sleep is the top priority now. Thanks

RedOnion said:

But you need to get some advice on investment strategies as a non Irish domiciled person, taking into account the tax treatments in your country of domicile and the country you plan to be in when you cash in the investments.

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that’s for sure, this will be part of our relocation, just a really complex topic.

I was just curious about implications for my wife without income (in fact her income is her spouse money) buying ETFs.

noonamer said:

I was just curious about implications for my wife without income (in fact her income is her spouse money) buying ETFs.

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There's no benefit putting them in wifes name vs yours, if you're subject to Irish taxation, as ETF is no subject to income tax. There might be some merit in investing in high dividend stocks in her name, as they'd be taxed at lower rate, and she has a personal tax credit. However, that benefit somewhat disappears once your child is born, as your wife can then apply for homecarers credit, which hives you an extea credit but makes her income chargeable at higher rate.

But there might be far more beneficial tax treatments depending on your domicile & plans.

RedOnion said:

There's no benefit putting tgdmnin wifes bane vs yours, if you're subject to Irish taxation, as ETF is no subject to income tax.

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yeah, the only reason was to have separate account in sake of security. in case of one account was compromised / hacked you at least have another one.

that seems from reading as long as it is Ireland domicile ETF you do not have to declare purchase as it is part of UCITS, if it is EU or non-EU you have to declare everything within Form 11