Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Tax and investments

Options
  • 10-04-2024 11:03am
    #1
    Frozen Veg
    Registered Users Posts: 512 ✭✭✭


    What's the most tax efficient way of investing long term?

    For example, investing a set amount each month/year with the objective of accessing it in approx 20 years time.

    Considering monthly purchase of indexed funds/ETFs or payroll input to AVC but trying compare tax implications.



Comments

  • Options
    #2
    marathonic
    Registered Users Posts: 1,662 ✭✭✭marathonic


    Pension contributions without any shadow of a doubt if you aren't already maxing your contributions and don't need access until whatever age your scheme permits access.

    Be careful of ETF's and deemed disposal tax rules.



  • Options
    #3
    Frozen Veg
    Registered Users Posts: 512 ✭✭✭Frozen Veg


    Thank you.

    In addition to setting up an AVC, I am considering a one off lump sum investment in indexes or ETFs (approx €10k).

    Is there any way of avoiding having to make annual tax declarations and payments? Is there any difference between indexed funds and ETFs in that regard.

    I have no issue paying tax when the investments are cashed out, but I want to avoid having to administer tax returns and amounts annually if that is possible.



  • Options
    #4
    Wossack
    Registered Users Posts: 7,001 ✭✭✭Wossack


    I’m looking into similar myself. Consider an accumulating ETF instead of a divesting one so you don’t have to deal with dividend income. Unless there’s something else (I’m no expert !) I think it should be hands off, bar the deemed disposal every 8 years



Advertisement