Ireland · Investing
Ireland: how exit tax and deemed disposal work on ETFs
If you live in Ireland and buy an ETF, the gain is not taxed like shares. Instead you pay exit tax: 38% on gains in 2026, falling to 35% from 1 January 2027 after Budget 2027. You also pay it every eight years on gains you have not taken, a rule called deemed disposal.
Exit tax vs capital gains tax
Shares you hold directly pay capital gains tax at 33%, with the first €1,270 of gains each year tax-free, and you can offset losses. ETFs and other funds domiciled in the EU, the EEA or the OECD are taxed under the fund rules instead:
| Shares (CGT) | ETFs (exit tax) | |
|---|---|---|
| Rate on gains | 33% | 38% in 2026, 35% from 2027 |
| Yearly tax-free amount | €1,270 | None |
| Losses offset gains | Yes | No |
| Tax without selling | No | Yes, every 8 years |
| Dividends | Income tax at your marginal rate | Exit tax rate on distributions |
How deemed disposal works
Eight years after each purchase, Revenue treats you as if you sold that holding and bought it back. You pay exit tax on the gain so far, and the tax you paid is credited when you really sell. If you invest every month, each monthly purchase has its own eight-year date, so after year eight you have a small tax bill coming up almost every month. You report and pay it yourself through your tax return; your broker usually will not do it for you.
An example: €300 a month for 20 years
Assume a 7% yearly return and the 35% rate that applies from 2027. You pay in €72,000 over 20 years.
| Ireland | Germany | Netherlands | |
|---|---|---|---|
| Value after 20 years | €129,480 | €150,882 | €142,061 |
| Tax paid along the way | €16,168 | €1,194 | €8,503 |
| Tax when you sell | €9,609 | €9,704 | €0 |
| Left after all tax | €119,872 | €141,178 | €142,061 |
Accumulating equity ETF, no other investments. Germany uses the Vorabpauschale and the €1,000 saver’s allowance; the Netherlands uses the 2026 box 3 rules, which are expected to change. Estimates, not a forecast.
The Irish result is lower because tax is taken out every eight years, so less money keeps compounding. Over 20 years that costs about €20,000 compared with the same plan in Germany.
What is changing
- 35% from 1 January 2027. Budget 2027, announced on 7 October 2026, cut the rate from 38%. The government also said it intends to remove deemed disposal during its term, but no date has been set.
- A new Personal Investment Account. Budget 2027 also announced a tax-free account for Irish residents: up to €12,000 a year in shares, bonds and ETFs, with no Irish tax up to €50,000 of account value and a 1% yearly charge above that. The target start date is 1 July 2027. Details still need to pass into law.
Things to check
- US-domiciled ETFs are not covered by the fund rules, but EU rules (PRIIPs) mean most European brokers will not sell them to retail investors.
- Pension wrappers (PRSA, occupational pensions) are not subject to exit tax. If you invest for retirement, they may beat a taxable ETF account.
- Keep records of every purchase date and price. You will need them for each deemed disposal.
Sources
This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email contact@expatcents.com.