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Investing from Ireland in your 20's

  • 03-01-2020 2:52pm
    #1
    Registered Users Posts: 1 BionicG


    Hello Everyone,

    I am in my early 20's and I have developed a keen interest in investing in recent months.

    I have tried to learn as much as possible during this time but there are still some questions I need answered. I have invested very small amounts in recent months using the platform Degiro and I have enjoyed the experience. However, I would really appreciate it if someone could clear up some questions I have before I invest larger sums for the long term.

    (1) If investing from Ireland in Euro, is it wise to search for European listings of large cap stocks (eg TSLA, MSFT, AAPL) and invest in the stock on an exchange such as the XETRA rather than the NYSE or Nasdaq? I aim to invest over the long term and thus wish to minimize currency risk. I am wondering if I use this idea of investing on European exchanges are there any other hidden risks I should be aware of? (apart from slightly higher transaction fees).

    (2) I use Degiro as a broker for context. If I dispose of shares making a profit of 100 euro for example, what are the tax implications of this? Do I simply wait until the end of the year and submit a form 12 with details of my disposals during the year? I realise gains will be subject to CGT at 33%, does this imply that my total tax liability on this 100 euro profit would be 33 euro? (I realise stamp duty is also chargeable at 1%, is that it?)

    (3) Are there any other hidden risks/ tax obligations (excluding market risk) that may prevent a young investor in Ireland from doing well over a 5-10 year investment horizon?

    Any advice on the above questions would be hugely appreciated! I have a degree in Economics & Finance so I understand most investment risks on a basic level. I am just keen to avoid any mistakes that may seriously diminish returns in the long run. I am still new to the investing scene and it can be difficult to find information on small practical issues like this. I felt that Boards was a great place to search for people in a similar situation or with some experience that may be able to help me at this time. Thank you.

    Happy new year to you all!!


Comments

  • Registered Users Posts: 785 ✭✭✭ Zenify


    Welcome to Boards BionicG


  • Registered Users Posts: 1,553 ✭✭✭ Umaro


    (2) I use Degiro as a broker for context. If I dispose of shares making a profit of 100 euro for example, what are the tax implications of this? Do I simply wait until the end of the year and submit a form 12 with details of my disposals during the year? I realise gains will be subject to CGT at 33%, does this imply that my total tax liability on this 100 euro profit would be 33 euro? (I realise stamp duty is also chargeable at 1%, is that it?)

    You wouldn't pay any tax on a profit of €100. It is well below the threshold at which you start to pay 33% tax (profits above €1270).

    You submit a return on or before 31 October in the year following the tax year in which you disposed of the asset.

    More info: https://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_gains_tax.html


  • Registered Users Posts: 14 ✭✭✭ maca007755


    im long metals now so im not trading but i know that if you sell your losing postions before year end you can write some of your profits off against them and let the remainder be taxed at 33%. simply buy back into those positions after year end if you want to continue with them.
    im in the same position as you, would be great to pool info and resources, tried sending you a message but ive not got the required posts to do so. write to me if you think its a good idea.


  • Registered Users Posts: 959 ✭✭✭ greenfield21


    maca007755 wrote: »
    im long metals now so im not trading but i know that if you sell your losing postions before year end you can write some of your profits off against them and let the remainder be taxed at 33%. simply buy back into those positions after year end if you want to continue with them.
    im in the same position as you, would be great to pool info and resources, tried sending you a message but ive not got the required posts to do so. write to me if you think its a good idea.

    You will have to wait four weeks otherwise this loss can only be used on the subsequent same shares that you purchase.


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