Circumventing the harsh Irish investment climate

[settlement]

Hi all,

Taxation on investments in Ireland seems punitive compared to other countries, for example
1. Deemed disposal
2. Exit tax (41%) rather than CGT (33%)
3. CGT of 33% (2nd highest in Europe)
4. CGT exemption of €1,270 (eg compared to £12,300 in the UK)
5. High inheritance/gift tax (does not exist in many countries, eg Australia)
6. For those who invest in housing, mortgage rates are the 3rd highest in Europe

and probably many others.

What is the best way to fight against these measures? Is there an example of an Irish investment regulation which is more sympathetic to investors than the average? The only thing I can think of is the pension, but not all who invest are able to put so much away or they may not be working. I have heard of investment trusts but they seem a bit more fiddly and nuanced for the everyday investor.

Any thoughts are welcome

 

[jpd]

This topic has been discussed longly and largely in many. many postings

It is hard to see the value in opening another topic on the subject

 

[Daithi7]

Is there any scope/ precedent for setting up a simple investment company or trust offshore to bypass penal Irish investment taxes?

So an investor has funds to invest, for arguments sake say €1m .

Rather than be hit with the horrendous levels of tax listed by the OP above , could an investor instead form an investment company or trust, to hold his or her investments, in a tax friendly jurisdiction overseas?

Then when drawing down the investment returns after say 10+years, take back their original sum tax free, as that was just a loan to the trust or investment company anyway, and then pay tax on the remainder in the most efficient manner at that time??

 

[Steven Barrett]

Hi all,

Taxation on investments in Ireland seems punitive compared to other countries, for example
1. Deemed disposal
2. Exit tax (41%) rather than CGT (33%)
3. CGT of 33% (2nd highest in Europe)
4. CGT exemption of €1,270 (eg compared to £12,300 in the UK)
5. High inheritance/gift tax (does not exist in many countries, eg Australia)
6. For those who invest in housing, mortgage rates are the 3rd highest in Europe

and probably many others.

What is the best way to fight against these measures? Is there an example of an Irish investment regulation which is more sympathetic to investors than the average? The only thing I can think of is the pension, but not all who invest are able to put so much away or they may not be working. I have heard of investment trusts but they seem a bit more fiddly and nuanced for the everyday investor.

Any thoughts are welcome

Move to the other countries that you speak of

 

[benbuffett]

I wonder how much revenue comes in from CGT on gains under €5,000? If they raised the CGT exemption level to €5,000 what would the State lose out on?

It would make little difference to the large investor, but the small guy it would help.

 

[joe sod]

Is there any scope/ precedent for setting up a simple investment company or trust offshore to bypass penal Irish investment taxes?

So an investor has funds to invest, for arguments sake say €1m .

That has also puzzled me why hasn't any irish financial institution established their own investment trusts specifically for irish investors. There are loads of investment trusts in the UK and elsewhere, its hardly rocket science. I thought the IFSC was supposed to be the most innovative and tax friendly institution in the EU, oh well that obviously only applies to the Apples and Googles of this world not for the little irish guys

 

[FintanJ]

This topic has been discussed longly and largely in many. many postings

It is hard to see the value in opening another topic on the subject

Ideally it would be pinned as its key topic. What’s best to search under. ?