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Tax efficient investments for non-domiciled Irish resident

  • 25-10-2023 9:59am
    #1
    kursk
    Registered Users, Registered Users 2 Posts: 6 ✭


    Good morning everyone,

    I am a non-domiciled Irish resident that is looking for tax efficient investments, especially but not limited to the 41% exit tax and deem disposal.

    I do hold some capital into a corporate US brokerage account, coming from RSU vested positions that I would like to invest. I was told by a tax advisor that, although I do have to pay income tax at the time those shares vest, as a non-domiciled Irish resident as long as I don't remit those funds to Ireland this would not trigger a tax event, hence not having to pay CGT.

    This is a great deal of course, yet I would prefer to diversify this portfolio (On Index funds, ETFs, etc.) rather than keeping all that capital into a single company stock as long as I don't have to pay 41% exit tax, plus deemed disposal. Ideally I would love to keep the advantage of 0% taxes on gains, although I might consider a low tax rate such as 15%.

    My tax advisor recommended looking to ETFs that happen to be domiciled on the US, or other off-shore jurisdiction but very importantly that fit the criteria of "Non-equivalent" fund in the EU/Irish market.

    There seems to be no such product in DEGIRO, I think US ETFs were delisted to meet PRIIPS.

    I've been also looking into opening a US broker account with Schwab who accept Irish residents starting at 25kUSD, and which confirmed automatic withholding of 15% taxes on gains, but I am unclear on the tax implications, both here in Ireland and in the US.

    In a nutshell my questions are

    - What would be the criteria to identify "Non-equivalent" ETFs in the legal documentation? Would that be non-UCITS?

    - Does anyone have a specific product recommendation that would meet some of those criteria?

    - What (and where) would be the best way of buying it?

    - Any other strategy or investment recommendation for a non-domiziled?

    Thanks in advance!



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