Buying US domiciled ETFs through a Financial Advisor

[hedgeeverything]

Hi,

I've been looking at options for buying US-domiciled ETFs that are subject to CGT vs. Exit Tax. There are some options available in Ireland if you go through an advisor and are willing to pay management fees.

Given the difference between CGT (33%) and Exit (41%) and the fact you have to pay the 41% every 8 years, plus you can offset CGT losses against your gains, why isn't doing this a no-brainer?

Curious if I'm missing anything.

thanks

 

[Marc]

Yes we can do this.

It’s not just the CGT advantage. Having income subject to marginal rates of income tax with a 15% tax credit from the IRS is also a factor.

One consideration is the exposure to US estate taxes which is an issue for married couples and civil partnerships in Ireland.

There are some solutions but as in all things it’s really a series of trade offs for any particular investor.

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