Hi,
Its great to save and to look into the best way to do that with the most effect in your country of residence and especially take advantage of any reduced tax within a pension. Put together an investment plan, lots of advice on the net for that. I would keep reading here and in particular concentrate on the tax aspects of investing as an Irish tax resident. If you are looking to invest in the future in VOO (not sure if you have a legacy investment) you probably already know that this is domiciled in the US and may not be available to you, it is also a large cap US equities fund (S&P 500) so will not reflect global diversity if you are aiming at the widest developed markets. For EU investors they have generally to look at UCITS designated ETF's.
BTW the tax on UCITs ETF's is high at 41% although there is no PRSI nor USC. Others better qualified here will probably chip in with more clarity.
J
No and No.Does Degiro automatically calculate the profit on any transaction 8 years old?
And deduct the tax?
It would and there is no deemed disposal after 8 years.I am not sure whether VOO would be treated as falling under income tax or CGT rules
Hi,
Its great to save and to look into the best way to do that with the most effect in your country of residence and especially take advantage of any reduced tax within a pension. Put together an investment plan, lots of advice on the net for that. I would keep reading here and in particular concentrate on the tax aspects of investing as an Irish tax resident. If you are looking to invest in the future in VOO (not sure if you have a legacy investment) you probably already know that this is domiciled in the US and may not be available to you, it is also a large cap US equities fund (S&P 500) so will not reflect global diversity if you are aiming at the widest developed markets. For EU investors they have generally to look at UCITS designated ETF's.
BTW the tax on UCITs ETF's is high at 41% although there is no PRSI nor USC. Others better qualified here will probably chip in with more clarity.
J
I cannot answer your question in its entirety as I am not sure whether VOO would be treated as falling under income tax or CGT rules, and I'm also not sure whether you need to sell your full position in a given security at the deemed disposal date, or just the shares that were bought >8 years prior.
One thing to note on your calculation is that the first €1270 of your gains per year are not taxed, so your calculation would be ((79,360 - 48,000) - 1270) * 33% = 9,929.70. There may be circumstances where it would make sense to sell part of your holding sooner than 8 years to make use of this annual CGT exemption.
All the above is correct. You don’t have global exposure with your choice of fund and you should consider a pension or mortgage if that’s on the cards. You’ll save more in a pension as you’ll avoid a certain % of tax on your contributions.
The other thing about UCITs, aside from the 41% exit tax, is that there is rollup taxation where you must fork out every 8 years for every investment made. That means (please correct me if I’m wrong, somebody) 12 investments a year will result in 12 taxation events 8 years later on profits accrued for each investment. It’s annoying.
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