Why are ETFs taxed differently from shares in Ireland?

Most exchange-traded funds (ETFs) pay exit tax: 38% in 2026 and 35% from 2027, with a tax every 8 years and no relief for losses. Shares pay capital gains tax at 31%, with €1,270 a year tax-free and relief for losses. Their dividends are taxed as income.

Is deemed disposal a tax on top of the exit tax?

No. Every 8 years you pay exit tax as if you had sold. When you really sell, the tax already paid is credited. The cost is that the money paid early stops growing.

Investing

ETFs or direct shares: which leaves you more?

The same money in an exchange-traded fund (ETF), with exit tax every 8 years, against shares, with capital gains tax and tax on dividends.

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Common questions

Why are ETFs taxed differently from shares in Ireland?: Most exchange-traded funds (ETFs) pay exit tax: 38% in 2026 and 35% from 2027, with a tax every 8 years and no relief for losses. Shares pay capital gains tax at 31%, with €1,270 a year tax-free and relief for losses. Their dividends are taxed as income.
Is deemed disposal a tax on top of the exit tax?: No. Every 8 years you pay exit tax as if you had sold. When you really sell, the tax already paid is credited. The cost is that the money paid early stops growing.

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