Tax on bonds

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franc82

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Am I correct in thinking that capital gain made on Bonds are not subject to the 41% exit tax?

I would like to know more about the taxation about bonds in general. I am about to buy a few bonds on trade republic on discounts. I know that the coupons will be subject to the marginal tax rate, but the capital gain will not be subject to the 41% exit but the CGT with the 1270 euros exemption?

For instance, if I buy a bond issued by Romania for 1000 euros at a discount price of 800 euros. If I keep it until maturity, then I will not have to declare the CGT on the gains made on the bond given that it falls below the 1270 euros exemption?

Is the rule the same for a bond issued by a US company as well?
 
franc82 said:
For instance, if I buy a bond issued by Romania for 1000 euros at a discount price of 800 euros. If I keep it until maturity, then I will not have to declare the CGT on the gains made on the bond given that it falls below the 1270 euros exemption?
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If it is the only gain you have that year - Yes

If you have total gains on other investments that year over €1,270 - No

The exemption is per year, not per investment.
 
The word "gains" refers to capital gains.

Irish bonds are exempt from CGT on capital gains.

The coupon income is subject to normal income tax.
 
I think the references above to "Irish bonds" should say "Irish government bonds". Also, if you invest in foreign bonds, I imagine that in some cases there is a risk of also being taxed in the foreign country.
 
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