Get ahead of the upcoming tax changes and get started with ETF investing today! Check out Trade Republic and Trading 212 for two of the best platforms for ETF investing in Ireland 📈 ► Try out Trade Republic*: trade.re/Dan ► Try out Trading 212*: www.trading212.com/invite/11QS32TKvw
Great video mate. This is spot on and potentially very exciting news. I've been writing emails to the desks of 3 different finance ministers over the past 7 years, trying to get this changed, so to finally even see recognition of it as a problem is a huge deal. Cautiously optimistic is a good way to put it. I'm the same, I'll believe it when I see it but definitely a positive here. Thanks
Tax on unrealised gains is more than theft it is corruption of big government the highest order that only big corporates would find a way around not paying
The tax on ETF’s for Irish residents is scandalous and deemed disposal on the unrealized gain is a joke. Whoever the finance minister will be going forward, they need to get this changed immediately. Why are Irish residents being punished with higher taxes on these type of investments than any other European investor 😡
I found it very interesting as a Japanese who have migrated from Japan to the UK and then to Ireland. Japan was in a similar situation about a decade ago and they introduced NISA, N stands for Nippon("Japan" in Japanese). I think we have the same culture that people tend to save money in the bank but with the declining population, the government took it seriously and finally introduced NISA by imitating what the UK have in 2014. They even reformed NISA as New NISA this year with much bigger benefits. When I first moved to the UK few years ago, I found those ISA system amazing, then moved to Ireland and got disappointed what they have. I will be in Ireland only for few years so it isn't a big deal for me but I really hope there will be Irish ISA for the great Irish people in the near future 🙏
Thanks for this. A video suggestion that i think would get you some views. Step by step on how to pay DIRT tax for deposit accounts with T212 & TR. Asking for a friend 😅
@12:00 there's no reason the Dept. of Finance can't have two Epics on their Jira board for 2026/27/28. 1) Remove DD and reduce tax on ETFs and 2) Start working on an ISA-like product
Absolutely, I'd love to see work started on this ASAP. It was the opinion of the review team that it wouldn't serve the immediate recommendations of the COTW as well as the recommendations of those consulted during the public consultation, which is correct. Both should exist in parallel, but one (ETF reform) is of a higher priority than the other in terms of what was laid out by the COTW
Pretty sure uptake in investing would increase significantly if this were to happen. Could increase the overall wealth in the country with the obviously benefits to the overall tax take. Having so much money in deposit accounts is a wasted opportunity for individuals and the country as a whole.
Ireland are part of europe an the goverment would want to start acting like it and stop been the only country in europe punishing people who want to invest, the deemed disposal i personally think is criminal, even if cgt stayed at 41 and deemed disposal was gone we be better much off. Hoping for change so that i can set myself up in 20 years.
You, my man, are a rare breed. We defo need the barriers to entry into ETFs & other investments reduced so more people can take part. Irish banks like AIB, PTSB, BOI have been taking the piss for far too long with ridiculous ROI on savings. I would much rather invest my money at home in Irish banks, but the returns have to be encouraging otherwise, I look elsewhere. Thanks for playing a key role....
I was delighted to read this report a couple of weeks ago. To the last point on your video, the only way we can keep momentum on this is individually and collectively lobbying for it. As you say a GE is coming up at the end of Nov '24. Remind each candidate that comes canvassing about this. Follow up with emails if/when they get elected. Email the new minister of finance if Jack Chambers is replaced.
Fair play Dan. You're doing gods work. Moving to Canada has really put into perspective how poor financial literacy is in Ireland. Living in Canada, I've learned how to manage my own investments using a TFSA (Canadian ISA) and my own pension while paying an annual management fee of just 0.2%. It's made very easy with online brokers like Wealthsimple, and all-in-one ETFs provided by Vanguard (e.g. VEQT, VGRO, VBAL). You choose the ETF with the asset allocation that suits your volatility appetite (e.g. 80% stock/20% bonds), set up auto investing each month and forget about it. Teenagers here can't wait to turn 18 to start growing their wealth. It would be amazing if Ireland progessed to something like this in the future 🤞.
Great update, thank you. With taxation on gains from investments in shares directly being more favourable than investments in ETFs you could argue that the Irish government is incentivising retail investors to invest more risky.
I've been living abroad for six years and its amazing how well ETFs perform when compared to anything else. Reassessing the way ETFs are taxed could also have the benefit of helping the housing market as it offers people a form of passive income that isn't rental income!
Positive noise Malone. Lets hope changes do happen. I starter investing in ETF's in mid-2021. Hopefully the changes happen before 2029, where if things do not change DD will be applied.
Worst country in europe where to be when it comes to etf investments. . Retail has to bear all the risks to then give 40% of gain to state. ..no thanks
Let us hope for the best. Ireland has undergone significant changes, and it's my hope that crucial and evident issues such as this will gain more traction within the government.
@4:09 and why is that? DD, 41% tax, lack of financial education, people who got burnt with Eircom shares, people seeing their pension only grow 2% or 3% per year as the default fund is 30/40/50% bonds/'lifestyling' even though they are still in their 30s/40s and think the 'stock market' isn't for them...
This would be a great advance to level the taxation playing field. Personally I feel that the current restriction around purchasing funds (you must go through bodies like Davy and Goodbodies to make purchases of certain products) even if using platforms like Trading212, is an effort to funnel such trades through these organisations, propping them up. A similar issue is tax on rental properties. Given the large number of small volume landlords (1-2 properties), such landlords are taxed as income tax, whereas large investment organisations get taxes at corporation tax rates. This overly penalises the smaller landlord.
A great video Dan, keep up the great work. Tax on investment is punitive. The reality is most people investing have already paid 41% on their income. They want to invest their savings and they are penalised, no wonder 178bn sits in deposit accounts.
About time.Why can’t have retirement type ISA using trading 212 also like the UK? Vanguard is based here for Europe and would can’t have an account directly if your in Ireland.
Something you talked about is the culture in ireland around investing, and irish people's propensity to saving. What i take from your video is you largely favour a government led approach, which is good, but i think voices like yourself is great too. There should be an overall sea change in Irish people's feelings on investments, and i think we can't rely on the government to do that. Just on my own personal experience, i try to get my wife into investing now while we're still young, but it's just not a priority for her or something she cares to think about.
For sure, in a perfect world people would actively seek out the information on their own and that's what I'm here for if and when they choose to do so! But the Government certainly needs to be doing more to nudge people in the right direction.
We can't be surprised why people don't invest when there is no education in schools and insane tax on investments compared to other countries. Hopefully the positive changes keep showing up.
I agree. A financial literacy exam should be mandatory for the leaving cert. I don't know how it's possible to know calculus leaving school but not have a clue how to invest or file taxes.
I agree with you. Let's start with the basics (no DD, matching stocks at 33%) before we start thinking about ISAs. I am late to the investing game because of ignorance and fear. For a long time I felt like investing was for rich people or for those in the know. I know people who do not want to have a pension, even though they don't have any investments, property or family money. I am not sure what they'll do when they retire. On the other hand, other people think that educating myself on TH-cam means I'll get scammed and lose all my money. I think an ISA will give people the sense that they don't need to know too much about the market and that investing is not too risky.
Why couldn't they get this report out a few weeks before the budget and get it included. Does this mean there will be no possibility of a change before next October? Thanks for the excellent video as always.
It's rare that these reports result in immediate changes to tax policy. The Government aren't bound by the recommendations and have their own separate teams to consider the recommendations themselves. With the timing of the report it was likely never the intention to action this in Budget 2025. There is absolutely a possibility for Budget 2026 though!
Love to hear this! Got another 20 years left in the market, hoping by then surely...this has changed. I wonder what would happen with funds invested before any sort of change in legislation.
I'm going to say the reason majority of irish people don't invest in stocks is because of the eircom stocks a state funded stock in the late 80's early 90's which was basically one of the largest ever pump and dump and it has left a bitter taste in irish households for generations.
Thanks for your work on this. I have delayed investing for the sole reason that I don’t know how to complete the tax requirements. Is there a way we can add our voice to be heard by the government? If so, please let us know.
Deemed disposal, a great way to penalize individuals who are actually trying to save for future. Whilst some wait endlessly for this so called auto enrolment” others pause their investments to save for an impending tax bill of 41%, every 8 years.
I totally agree on buying stocks individually. Amazon share price up more than the S@P 500 year to date, ok I know with an ETF u get exposed to bits of hundreds of stocks but I'm a single stock invester.
The country has plenty of money in their coffers so they should use it on what you suggested. Otherwise, their residents would just have a small pension and end up pleading to the government for a handout. I find they could do even better than the proposal by taxing the gain on ETFs as part self-assessment - just like tax on dividends, rental income. UK and Australia do the same thing.
Great video as always. Hopefully these changes get realised soon despite the upcoming election. Keep up the great work your videos are badly needed in Ireland.
Fuck me. Im irish but have lived in Australia for 13 years. I buy ETF's here. The rules are. You do not get taxed on unrealised gains( of course not thats theft). You trigger a capital gain if you sell your ETF. The capital gain is added to your total income and falls then within your normal tax rate, whatever that it. Captial gains can be offset against capital losses including other assets (real estatge etc) Also, if you hold your shares for more than 12 months. You have a capitall gains discount of 50%. When i look back at the UK and ireland i realise you are all getting robbed. It's like they give you no avenue to build your own wealth
The UK has tax-free investment accounts (i.e. Stock & shares ISA). So yes, Ireland is awful for your average retail investor but he UK is very good. Ireland needs to get it's act together before there's a border poll or it will be a massive headache for reunification.
Seeing as the report was commissioned under a Fine Gael finance minister and completed/supported by a Fianna Fail finance minister, that should give you an indication of the parties most likely to see this across the line
Could you do a video on how to calculate dd after 8 years? And how to pay that bill (sell etfs vs save cash to pay it). For example, if I sell my etfs to pay my dd bill, does the exit tax cover that, or am I double taxed? I really hope this tax is scrapped or improved before 2030.....
Been following financial channels for years delighted to see an Irish one as so hard to relate to US and UK…finally someone discussing deemed disposal which is a travesty
Hi there, been a regular viewer of the channel for some time now. Your videos are a great help. Just a quick question if you get a chance to answer. I lost about €5000 on stock about 3 years ago. If I sell a ETF now will the first €5000 profit be free from tax now?
No. It’s taxed as income not capital gains. The €5k loss can be rolled over against any capital disposal though such as gains on property or individual stocks.
If they were to change this in the next year or two, would it only effect etf shares bought after the deemed disposal rule was scrapped or would previously bought etf stocks be exempt from having to pay deemed disposal too?
Not necessarily, they may just align the rate of tax with CGT but without applying the other provisions of CGT (like the annual exemption). Will have to wait and see!
The report looks great, I was banking on them making changes in this years budget and moved all my investments into etfs before the budget, as long as they change the rules in the next 8 years it’s fine for me but the sooner the better. I worked out that over a 24 year period it would make approx. €2m of a difference to my account so it is a big deal.
education is the first step, second should be simplifying taxes for ETF investors, so people won’t be afraid to invest not knowing what tax to pay and be forced to pay hundreds of euros for tax advisors who has knowledge about etf’s investment
Would it be a good idea to start investing in ETFs now with Trade 212, I know it might take a few years for this change to be implemented. But its 8 Years before you are Taxed 41% so hopefully it is implemented before then.
Taxation should never be the sole reason you don't do something and that's especially true when you consider the colossal long-term benefits of ETFs. The sooner the better IMO!
Great video and well done for putting forward the many views held by many investors on etf's. Let's hope these recommendations are implemented soon. Keep up the great work.👊👏👏👏
We have a natural disaster in spain many dead and crickets from the EU. No mobilisation not even a mechanism to help, you can drowned in water debt and toll roads.
Sorry but I really hate living in Ireland, We get hammered with tax. How does it work with crypto? Are we supposed to do our own taxes? Another thing, Ireland is the only country in Europe that charges for importing cars. Kip
What about SPDR® S&P® 500 UCITS ETF (Acc), ISIN IE000XZSV718, i find it so cheap when compares with iShares Core S&P 500 UCITS ETF acc or even Vanguard S&P 500 UCITS ETF (USD) Acc, why so? Can you make a video compare these 3 ETFs?
They're almost identical. The main difference is the expense ratio and even that is a very small difference. SPDR has the lowest expense ratio, then ishares followed by vanguard I think.
Hi Malone! how are you doing? I have a question for you. I started investing on stocks a few months ago and I am aware that I have tax credit in the first 1270 euros for capital gain tax. I still did not make those 1270 euros but my question is do I have to declare that I did some revenue at the end of the month? Let me explain better. If I make 500 euros by the end of the year do I have to submit a form o send an email to revenue about the 500 I made? Thank you so much for the videos! they are really usefull
@@weeeeehhhhh So basically i have until the 31st of 2025 to report the profit i made? is that right? thank you for your response. plus. which section do I have to go to report them on revenue?
@FrankT860 yep, if you sold this year. You need to fill out a form 11 on revenue website under the CGT section. There are a few videos on TH-cam that show you how. Search "pay CGT Ireland"
I am not very up on financial products, platforms and systems but am fully sold on bitcoin. Is there a way in Ireland of getting all the tax benefits of a pension that is based on the high risk of BitCoin ETF's, or better again ownership or shares of MicroStrategy etc... But of course from an Irish context?
Not an expert in Irish pensions, but you get the tax benefit once it's invested in a proper, approved pension product. Then it's up to you to see if the pension provider has a clue about how to direct your investment/let you choose. I'd start with looking up PRSA providers and see if any of them have any products with exposure to BTC...
Great content - thanks! I currently invest in individual stocks over ETFs for the tax reason! Crazy. I’m kinda thinking now to kick off some ETF investing on the basis it’s unlikely not to have been sorted in eight years. 😂🤷♂️
There is some momentum behind the movement now. Personally I will be asking any of the candidates about this when they come around canvassing in the next few weeks. Keep it fresh on their minds.
I hope Sinn Fein won't be the party who objects to any sort of progress....I mean the American style of some of the best savings accounts have got the word IRA in the name of the product...(stands well back... 🙂
They will, because they oppose everything just for the sake of opposition. It's a way to build wealth for working people but they will spin it as a change to benefit the wealthy
Disagree with last point from report. Handing people a 20k per year tax free investment account would spread like wild fire. That would incentivise people into educating themselves about investing and content creators like yourself would see more traction by sharing the information.
For sure, but this report was commissioned on the basis of the Commission on Taxation and Welfare's recommendation to simplify the taxation of investments. The report isn't denying the importance of an ISA-styled product, it just acknowledges that its introduction wouldn't simplify the system.
I, for one understand the need for a tax to exist, but can someone, for the love of god show me where our taxes are going? Because it certainly isn’t going into our roads, education, infrastructure (unless you count hotels 🙃)…the list goes on. Compared to The Netherlands, for example and you’ll see we’re just getting robbed every month
Get ahead of the upcoming tax changes and get started with ETF investing today! Check out Trade Republic and Trading 212 for two of the best platforms for ETF investing in Ireland 📈
► Try out Trade Republic*: trade.re/Dan
► Try out Trading 212*: www.trading212.com/invite/11QS32TKvw
Great video mate. This is spot on and potentially very exciting news. I've been writing emails to the desks of 3 different finance ministers over the past 7 years, trying to get this changed, so to finally even see recognition of it as a problem is a huge deal.
Cautiously optimistic is a good way to put it. I'm the same, I'll believe it when I see it but definitely a positive here. Thanks
Tax on unrealised gains is theft and 41% tax rate is a joke
Tax on unrealised gains is more than theft it is corruption of big government the highest order that only big corporates would find a way around not paying
I agree. I have over 20000 in an ETF and the thought of paying 41% every 8 years is galling.
Not enough Irish investment channels, makes it so hard to get accurate and helpful information. Love your videos mate
Cheers!
The tax on ETF’s for Irish residents is scandalous and deemed disposal on the unrealized gain is a joke. Whoever the finance minister will be going forward, they need to get this changed immediately. Why are Irish residents being punished with higher taxes on these type of investments than any other European investor 😡
Let's hope it doesn't take long. 41% is far too high.
I found it very interesting as a Japanese who have migrated from Japan to the UK and then to Ireland.
Japan was in a similar situation about a decade ago and they introduced NISA, N stands for Nippon("Japan" in Japanese). I think we have the same culture that people tend to save money in the bank but with the declining population, the government took it seriously and finally introduced NISA by imitating what the UK have in 2014.
They even reformed NISA as New NISA this year with much bigger benefits. When I first moved to the UK few years ago, I found those ISA system amazing, then moved to Ireland and got disappointed what they have. I will be in Ireland only for few years so it isn't a big deal for me but I really hope there will be Irish ISA for the great Irish people in the near future 🙏
Thanks for sharing this, really interesting!
Thanks for this. A video suggestion that i think would get you some views. Step by step on how to pay DIRT tax for deposit accounts with T212 & TR. Asking for a friend 😅
That would be great.
Thanks for the suggestion, noted!
Likewise would like this
step 1: don't
step 2: pray
Great video, too many of us have no knowledge on how to get started and those who do are turned off by the tax on etfs
@12:00 there's no reason the Dept. of Finance can't have two Epics on their Jira board for 2026/27/28. 1) Remove DD and reduce tax on ETFs and 2) Start working on an ISA-like product
Absolutely, I'd love to see work started on this ASAP. It was the opinion of the review team that it wouldn't serve the immediate recommendations of the COTW as well as the recommendations of those consulted during the public consultation, which is correct. Both should exist in parallel, but one (ETF reform) is of a higher priority than the other in terms of what was laid out by the COTW
Need full ISAs, not reducing 41% to 33%.
Pretty sure uptake in investing would increase significantly if this were to happen. Could increase the overall wealth in the country with the obviously benefits to the overall tax take. Having so much money in deposit accounts is a wasted opportunity for individuals and the country as a whole.
I agree that we need an ISA-styled product, but aligning the rate of ETF taxation with that of CGT is of fundamental importance
We're so far behind both of these standard recommendations seem like there innovative to our government.
Ireland are part of europe an the goverment would want to start acting like it and stop been the only country in europe punishing people who want to invest, the deemed disposal i personally think is criminal, even if cgt stayed at 41 and deemed disposal was gone we be better much off. Hoping for change so that i can set myself up in 20 years.
Zero financial literacy in Ireland.. education fails desperately on this topic.. lets learn religion instead..
Channels like this are beyond needed
I remember you calling it...fair play Malone.
(about time too).
You, my man, are a rare breed. We defo need the barriers to entry into ETFs & other investments reduced so more people can take part. Irish banks like AIB, PTSB, BOI have been taking the piss for far too long with ridiculous ROI on savings. I would much rather invest my money at home in Irish banks, but the returns have to be encouraging otherwise, I look elsewhere. Thanks for playing a key role....
I was delighted to read this report a couple of weeks ago. To the last point on your video, the only way we can keep momentum on this is individually and collectively lobbying for it. As you say a GE is coming up at the end of Nov '24. Remind each candidate that comes canvassing about this. Follow up with emails if/when they get elected. Email the new minister of finance if Jack Chambers is replaced.
Couldn't agree more, keep the conversation going!
Fair play Dan. You're doing gods work. Moving to Canada has really put into perspective how poor financial literacy is in Ireland. Living in Canada, I've learned how to manage my own investments using a TFSA (Canadian ISA) and my own pension while paying an annual management fee of just 0.2%. It's made very easy with online brokers like Wealthsimple, and all-in-one ETFs provided by Vanguard (e.g. VEQT, VGRO, VBAL). You choose the ETF with the asset allocation that suits your volatility appetite (e.g. 80% stock/20% bonds), set up auto investing each month and forget about it. Teenagers here can't wait to turn 18 to start growing their wealth. It would be amazing if Ireland progessed to something like this in the future 🤞.
Best of luck for the future in Canada!
Great update, thank you. With taxation on gains from investments in shares directly being more favourable than investments in ETFs you could argue that the Irish government is incentivising retail investors to invest more risky.
For sure! That's what's called "distortionary behavior" where, as a result of a tax policy, an individual chooses one course of action over another
Exactly, the incentive structures in Irish tax are atrocious.
I've been living abroad for six years and its amazing how well ETFs perform when compared to anything else. Reassessing the way ETFs are taxed could also have the benefit of helping the housing market as it offers people a form of passive income that isn't rental income!
Thank you!
Positive noise Malone. Lets hope changes do happen.
I starter investing in ETF's in mid-2021. Hopefully the changes happen before 2029, where if things do not change DD will be applied.
Worst country in europe where to be when it comes to etf investments. . Retail has to bear all the risks to then give 40% of gain to state. ..no thanks
Great update, good to see you back!
Let us hope for the best. Ireland has undergone significant changes, and it's my hope that crucial and evident issues such as this will gain more traction within the government.
@4:09 and why is that? DD, 41% tax, lack of financial education, people who got burnt with Eircom shares, people seeing their pension only grow 2% or 3% per year as the default fund is 30/40/50% bonds/'lifestyling' even though they are still in their 30s/40s and think the 'stock market' isn't for them...
This would be a great advance to level the taxation playing field. Personally I feel that the current restriction around purchasing funds (you must go through bodies like Davy and Goodbodies to make purchases of certain products) even if using platforms like Trading212, is an effort to funnel such trades through these organisations, propping them up.
A similar issue is tax on rental properties. Given the large number of small volume landlords (1-2 properties), such landlords are taxed as income tax, whereas large investment organisations get taxes at corporation tax rates. This overly penalises the smaller landlord.
A great video Dan, keep up the great work. Tax on investment is punitive. The reality is most people investing have already paid 41% on their income. They want to invest their savings and they are penalised, no wonder 178bn sits in deposit accounts.
About time.Why can’t have retirement type ISA using trading 212 also like the UK? Vanguard is based here for Europe and would can’t have an account directly if your in Ireland.
Good one Bro
Nice one Malone
Something you talked about is the culture in ireland around investing, and irish people's propensity to saving. What i take from your video is you largely favour a government led approach, which is good, but i think voices like yourself is great too. There should be an overall sea change in Irish people's feelings on investments, and i think we can't rely on the government to do that.
Just on my own personal experience, i try to get my wife into investing now while we're still young, but it's just not a priority for her or something she cares to think about.
For sure, in a perfect world people would actively seek out the information on their own and that's what I'm here for if and when they choose to do so! But the Government certainly needs to be doing more to nudge people in the right direction.
We can't be surprised why people don't invest when there is no education in schools and insane tax on investments compared to other countries. Hopefully the positive changes keep showing up.
I agree. A financial literacy exam should be mandatory for the leaving cert. I don't know how it's possible to know calculus leaving school but not have a clue how to invest or file taxes.
I agree with you. Let's start with the basics (no DD, matching stocks at 33%) before we start thinking about ISAs.
I am late to the investing game because of ignorance and fear. For a long time I felt like investing was for rich people or for those in the know. I know people who do not want to have a pension, even though they don't have any investments, property or family money. I am not sure what they'll do when they retire. On the other hand, other people think that educating myself on TH-cam means I'll get scammed and lose all my money. I think an ISA will give people the sense that they don't need to know too much about the market and that investing is not too risky.
Brilliant video! I wonder why they can’t just preface everything with the standard “this is not financial advice”
Why couldn't they get this report out a few weeks before the budget and get it included.
Does this mean there will be no possibility of a change before next October?
Thanks for the excellent video as always.
It's rare that these reports result in immediate changes to tax policy. The Government aren't bound by the recommendations and have their own separate teams to consider the recommendations themselves. With the timing of the report it was likely never the intention to action this in Budget 2025. There is absolutely a possibility for Budget 2026 though!
Love to hear this! Got another 20 years left in the market, hoping by then surely...this has changed.
I wonder what would happen with funds invested before any sort of change in legislation.
My guess is that it'll just be scrapped altogether with no clause capturing investments made before the date of change
@malone_financial that would be brilliant 👏
Well done Malone. Crazy tax, especially since it lowers exchequer funding in the long term. They're interfering with their own compounding, crazy
I'm going to say the reason majority of irish people don't invest in stocks is because of the eircom stocks a state funded stock in the late 80's early 90's which was basically one of the largest ever pump and dump and it has left a bitter taste in irish households for generations.
Great to get all this info thanks
Thanks for your work on this. I have delayed investing for the sole reason that I don’t know how to complete the tax requirements. Is there a way we can add our voice to be heard by the government? If so, please let us know.
Keep mentioning it to your local representatives when they come knocking on the door canvassing for votes!
Deemed disposal, a great way to penalize individuals who are actually trying to save for future. Whilst some wait endlessly for this so called auto enrolment” others pause their investments to save for an impending tax bill of 41%, every 8 years.
Just buy shares directly and avoid the issue entirely... simples
I totally agree on buying stocks individually. Amazon share price up more than the S@P 500 year to date, ok I know with an ETF u get exposed to bits of hundreds of stocks but I'm a single stock invester.
The country has plenty of money in their coffers so they should use it on what you suggested. Otherwise, their residents would just have a small pension and end up pleading to the government for a handout. I find they could do even better than the proposal by taxing the gain on ETFs as part self-assessment - just like tax on dividends, rental income. UK and Australia do the same thing.
Love this channel, thank you for that Malone. :)
Thank you!
Great video as always. Hopefully these changes get realised soon despite the upcoming election. Keep up the great work your videos are badly needed in Ireland.
Fuck me. Im irish but have lived in Australia for 13 years. I buy ETF's here. The rules are. You do not get taxed on unrealised gains( of course not thats theft). You trigger a capital gain if you sell your ETF. The capital gain is added to your total income and falls then within your normal tax rate, whatever that it.
Captial gains can be offset against capital losses including other assets (real estatge etc)
Also, if you hold your shares for more than 12 months. You have a capitall gains discount of 50%.
When i look back at the UK and ireland i realise you are all getting robbed.
It's like they give you no avenue to build your own wealth
The UK has tax-free investment accounts (i.e. Stock & shares ISA). So yes, Ireland is awful for your average retail investor but he UK is very good. Ireland needs to get it's act together before there's a border poll or it will be a massive headache for reunification.
I've moved away from ETFs because the tax is too high. Better to invest in multiple stocks instead
Malone, do you have an opinion on which parties might implement the recommendations from the report, or which would be unlikely to implement them?
Seeing as the report was commissioned under a Fine Gael finance minister and completed/supported by a Fianna Fail finance minister, that should give you an indication of the parties most likely to see this across the line
Could you do a video on how to calculate dd after 8 years? And how to pay that bill (sell etfs vs save cash to pay it). For example, if I sell my etfs to pay my dd bill, does the exit tax cover that, or am I double taxed? I really hope this tax is scrapped or improved before 2030.....
Been following financial channels for years delighted to see an Irish one as so hard to relate to US and UK…finally someone discussing deemed disposal which is a travesty
Hi there, been a regular viewer of the channel for some time now. Your videos are a great help. Just a quick question if you get a chance to answer.
I lost about €5000 on stock about 3 years ago. If I sell a ETF now will the first €5000 profit be free from tax now?
No. It’s taxed as income not capital gains. The €5k loss can be rolled over against any capital disposal though such as gains on property or individual stocks.
No. Currently ETFs have no way to cut tax due to losses, even if from another ETF.
Capital losses on stocks cannot currently be used against gains on ETF disposals
does this mean I can by IBIT Bitcoin ETF?
If they were to change this in the next year or two, would it only effect etf shares bought after the deemed disposal rule was scrapped or would previously bought etf stocks be exempt from having to pay deemed disposal too?
Good question. I hope he will answer to you.
No taxation on gambling whilst we have such high taxes on investing is nuts
Have to ask, why do you have 3 identical mustaches..... ?😂
Under the new proposals, would ETF profits be classed as capital gains, and hence be subject to the €1270 yearly tax exemption?
Not necessarily, they may just align the rate of tax with CGT but without applying the other provisions of CGT (like the annual exemption). Will have to wait and see!
The report looks great, I was banking on them making changes in this years budget and moved all my investments into etfs before the budget, as long as they change the rules in the next 8 years it’s fine for me but the sooner the better. I worked out that over a 24 year period it would make approx. €2m of a difference to my account so it is a big deal.
education is the first step, second should be simplifying taxes for ETF investors, so people won’t be afraid to invest not knowing what tax to pay and be forced to pay hundreds of euros for tax advisors who has knowledge about etf’s investment
Would it be a good idea to start investing in ETFs now with Trade 212, I know it might take a few years for this change to be implemented. But its 8 Years before you are Taxed 41% so hopefully it is implemented before then.
Taxation should never be the sole reason you don't do something and that's especially true when you consider the colossal long-term benefits of ETFs. The sooner the better IMO!
Dont think it will ever happen myself if anything more countrys will be joining us with higher tax rates and new tax laws to try close deficits.
Great video and well done for putting forward the many views held by many investors on etf's.
Let's hope these recommendations are implemented soon. Keep up the great work.👊👏👏👏
We have a natural disaster in spain many dead and crickets from the EU. No mobilisation not even a mechanism to help, you can drowned in water debt and toll roads.
Sorry but I really hate living in Ireland, We get hammered with tax.
How does it work with crypto? Are we supposed to do our own taxes?
Another thing, Ireland is the only country in Europe that charges for importing cars. Kip
Excellent video and great news.
Now… when will Ireland start to build a strategic reserve of Bitcoin to offset the national debt?
What about SPDR® S&P® 500 UCITS ETF (Acc), ISIN IE000XZSV718, i find it so cheap when compares with iShares Core S&P 500 UCITS ETF acc or even Vanguard S&P 500 UCITS ETF (USD) Acc, why so?
Can you make a video compare these 3 ETFs?
They're almost identical. The main difference is the expense ratio and even that is a very small difference. SPDR has the lowest expense ratio, then ishares followed by vanguard I think.
I'm liking this to heavens😀
@11:35 Translation: "This would mean we couldn't tax you twice."
Hi Malone! how are you doing? I have a question for you. I started investing on stocks a few months ago and I am aware that I have tax credit in the first 1270 euros for capital gain tax. I still did not make those 1270 euros but my question is do I have to declare that I did some revenue at the end of the month?
Let me explain better. If I make 500 euros by the end of the year do I have to submit a form o send an email to revenue about the 500 I made?
Thank you so much for the videos! they are really usefull
Yes, by Oct 31st the year after you make the sale.
@@weeeeehhhhh So basically i have until the 31st of 2025 to report the profit i made? is that right? thank you for your response. plus. which section do I have to go to report them on revenue?
@FrankT860 yep, if you sold this year.
You need to fill out a form 11 on revenue website under the CGT section. There are a few videos on TH-cam that show you how. Search "pay CGT Ireland"
@@FrankT860google CGT1 form. There’s also videos on how to complete the form yourself and save a few quid!
@@FrankT860you report it on the form 11 if you are self employed / self assessed. Or if PAYE worker, on a cg1 form.
We've been impressed with what you're doing and would like to partner with you!
I am not very up on financial products, platforms and systems but am fully sold on bitcoin. Is there a way in Ireland of getting all the tax benefits of a pension that is based on the high risk of BitCoin ETF's, or better again ownership or shares of MicroStrategy etc... But of course from an Irish context?
Not an expert in Irish pensions, but you get the tax benefit once it's invested in a proper, approved pension product. Then it's up to you to see if the pension provider has a clue about how to direct your investment/let you choose. I'd start with looking up PRSA providers and see if any of them have any products with exposure to BTC...
@declanmcardle thanks appreciate reply 👍
Great content - thanks! I currently invest in individual stocks over ETFs for the tax reason! Crazy. I’m kinda thinking now to kick off some ETF investing on the basis it’s unlikely not to have been sorted in eight years. 😂🤷♂️
No harm getting the ETF portfolio started!
I'll believe it when I see it....
Isn't it convenient that we're hearing about this right before the elections?
There is some momentum behind the movement now. Personally I will be asking any of the candidates about this when they come around canvassing in the next few weeks. Keep it fresh on their minds.
Who do I vote for to make this happen?
FG would be the safest bet I’d say but FF would also likely see it across the line too
Badly needed
just DCA into Berkshire Hathaway stock
Thanks again for your awesome work! Can’t wait to get this stupid deemed disposal to be removed
Cheers
you definitely watch kara n nate
Becoming a landlord isn't very attractive anymore they might as well incentivise us do something else.
If history is anything to go by, your net real returns would be significantly better in index fund ETFs than in real estate!
What ridiculous is very profitable farmers pay next to zero inheritance tax
I hope Sinn Fein won't be the party who objects to any sort of progress....I mean the American style of some of the best savings accounts have got the word IRA in the name of the product...(stands well back... 🙂
They will, because they oppose everything just for the sake of opposition.
It's a way to build wealth for working people but they will spin it as a change to benefit the wealthy
😂
Disagree with last point from report. Handing people a 20k per year tax free investment account would spread like wild fire. That would incentivise people into educating themselves about investing and content creators like yourself would see more traction by sharing the information.
For sure, but this report was commissioned on the basis of the Commission on Taxation and Welfare's recommendation to simplify the taxation of investments. The report isn't denying the importance of an ISA-styled product, it just acknowledges that its introduction wouldn't simplify the system.
Or just incorporate in the cayman islands and don’t pay anything….
I, for one understand the need for a tax to exist, but can someone, for the love of god show me where our taxes are going? Because it certainly isn’t going into our roads, education, infrastructure (unless you count hotels 🙃)…the list goes on. Compared to The Netherlands, for example and you’ll see we’re just getting robbed every month