Buying ETFs in Ireland with different domicile of origin

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k06351000

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Hope this is the right place to put this.

I have a friend who wants to buy some ETF’s, I was explaining how deemed disposal makes it somewhat unattractive . However despite living here he isn’t Irish, could he benefit from still having domicile of origin in his home country? He has been here five years, owns a house here, will probably live here for the next 25-30 years and then return home to retire. In his home country capital gains on ETF’s are taxed at 15% so a lot more attractive.

He has opened an account with degiro.ie but to do this would he need to open an account at home? Does he need to inform the Irish tax authorities in any way?
 
Those ETFs don’t qualify for the remittance basis (i.e. Non-Dom taxation).

So your friend is taxed the same as any of us…41% on income or gains, 8 year rule, etc
 
Thanks Gordon. I know he has talked about buying an investment property in his home village in the past, would qualify for the remittance basis? Or I guess a better question would be what qualifies?
 
if I'm right provided they don't qualify as an offshore fund remittance basis apply. I can't add a link to a thread for some reason. Search for: do i need to file tax return (non-domiciled)
 
Thanks guys, I’m thinking Berkshire Hathaway shares could be a good option to avail of the remittance basis but avoid the dividend payments and associated paperwork from uk investment trusts or us ETF’s.
 
tbh taking a professional advice is money well spent especially if he wants to utilise his non-domicile status as the tax savings outweigh the advice cost.
 
I’ll suggest it.

To be honest he probably won’t and the money will just sit in a deposit account which is a pity.
Had hoped there would be a simple solution,
 
Gordon Gekko said:
Those ETFs don’t qualify for the remittance basis (i.e. Non-Dom taxation).

So your friend is taxed the same as any of us…41% on income or gains, 8 year rule, etc
Click to expand...
Thanks Gordon, does this apply to all EU ETFs? Or just Irish-domiciled ones?
Any reading material on the subject?

Edit: found the answer:


Gordon Gekko said:
Indeed I do.

The remittance basis only applies to income that is taxed under Schedule D Case III of the Taxes Act.

Regulated European Funds are taxed under Schedule D Case IV, so the remittance basis does not apply to either income or gains in respect of same.
Click to expand...
 
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