Taxes and charges
How can taxes and charges affect your investment returns?
Taxes and charges reduce the return on your investment. Depending on the type of investment, you may have to pay tax on any income or gains you make. Charges for advice, fund management or buying and selling investments can also apply.
What should you check before investing?
You should check:
- What taxes apply to the investment product you are considering?
- Is there an investment product that better suits your tax circumstances?
- What one-off and ongoing charges you may pay?
- If taxes and charges are deducted automatically?
- Who is responsible for managing any tax declaration to Revenue?
- How could taxes and charges affect the expected return you will receive?
What taxes might apply to your investments?
Different investments products are subject to different tax rules, and the way an investment is taxed depends on how the product is structured. Because the tax treatment of investments can be complex, it is important to understand the implications before investing. A financial or tax adviser can help you determine which option is most suitable for your circumstances.
The new new Investment Account is expected to introduce a new simplified tax treatment for certain investments in 2027.
Understanding how an investment is taxed can help you estimate the return you may keep and compare different investment options more effectively. If you are unsure how an investment will be taxed, consider getting tax or financial advice before investing.
| Tax | What is may apply to | Headline rate |
|---|---|---|
Capital gains tax (CGT) | Profits from selling certain assets such as shares, investment property and unit-linked life assurance i products. The first €1,270 of net gains each tax year is generally exempt from CGT. Capital losses can be carried forward and used against future capital gains. | 33% |
Exit tax | Gains from certain investment funds, ETFs and unit-linked life assurance products. Under the deemed disposal rule, tax may be charged every eight years even if you have not sold the investment. | 38% |
Dividend income | Dividends received from shares are generally taxable as income. The amount of tax you pay depends on your personal circumstances. | Varies |
Deposit interest retention tax (DIRT) | Interest from deposit and savings accounts with financial institutions. | 33% |
Incomes tax, USC and PRSI | Certain investment income, such as dividends and some foreign investment income, depending on the investment and your personal circumstances. | Varies |
What charges might apply to your investments?
The total cost of investing depends on how you choose to grow your money. Use this table to understand the typical charges you will encounter when investing through a managed fund versus buying individual assets yourself.
| Fee type | Managed investment funds through a bank or insurance company (unit-linked funds, mutual funds) | Direct shares and ETFs through an online trading app or broker |
|---|---|---|
Upfront costs | Allocation / Contribution Fee: A percentage that may be deducted from each payment before it is invested. Example: A 2% fee on a €1,000 payment leaves €980 to be invested. | Transaction / Dealing Fee: A flat fee or small percentage charged by the broker per trade. Example: A flat €3 fee to buy €500 worth of shares. |
Yearly accounts costs | Annual Management Charge (AMC): A recurring yearly fee taken from your total fund value. Example: A 1% AMC on a €10,000 fund costs €100 a year. | Platform / Custody Fee: A recurring maintenance fee charged by the broker to hold your portfolio. Example: A flat €10 per quarter or 0.2% of your portfolio value per year. |
Getting your money out | Early Withdrawal / Exit Fees: Some products may charge a fee if you withdraw your money within a specified period. Example: A 5% penalty on a €5,000 early withdrawal reduces your payout by €250. | Transaction / Dealing Fee: The same flat or percentage-based fee applied when you buy is charged again when you sell your shares. |
Internal / Ongoing costs | Fund Operational Charges: Day-to-day transaction and admin costs built into the fund's unit price. Example: 0.25% additional annual fund costs reduce your investment return. | ETF Ongoing Charges: The ETF's annual operating costs, built into the price of the ETF and deducted automatically from returns. Example: A 0.15% fee automatically deducted within the ETF. |
Additional / specific costs | Performance or Switching Fees: Potential charges for moving between funds or if an active fund beats a specific target. | Foreign Exchange (FX) Fees: A currency conversion fee (e.g., 0.25%) on non-Euro assets Stamp Duty: A 1% government tax that generally applies when buying shares in Irish companies (does not apply to ETFs). |
Why should you compare investment charges?
Charges reduce the return you keep from your investment. Even small differences in charges can have a significant impact over the long term, particularly if you invest for many years. Before investing:
- Ask for a written list of all fees and charges
- Check which charges are one-off and which are ongoing
- Check whether any early withdrawal or exit fees apply
- Compare the total cost of similar investments, not just their expected returns
How do financial advisers charge for their services? Financial advisers may charge a fee for their services or, in some cases, receive commission from a product provider. Before accepting advice, make sure you understand how the adviser is paid and what charges will apply.
Read more about financial advice and how much it can cost.
Frequently asked questions
What information should you receive about taxes and charges before investing?
You should receive clear information about applicable taxes, fees and charges before investing. If anything is unclear, ask your provider or adviser to explain the costs and how they could affect your return.Do you only pay investment tax when you make a profit?
Not always. The timing and basis of taxation depend on the investment. For some investments, the deemed disposal rule can trigger tax on gains every eight years even if you have not sold the investment. Check the tax treatment before you invest.Do I have to pay tax on savings and investments in Ireland?
Yes. The tax you pay depends on the type of savings or investment product you have.
Savings
- Interest earned on savings in Ireland is generally subject to Deposit Interest Retention Tax (DIRT) at 33%.
- DIRT is usually deducted automatically by the financial institution.
- If you earn interest from a bank in another EU Member State, you must declare that interest to Revenue.
Investments
The tax you pay on investments will depend on the type of product you invest in. Tax on investments can be complex but, investments are typically subject to one or more of the following:
- Capital Gains Tax (CGT) at 33%
- Income Tax at 20% or 40%
- Exit tax at 38% on certain investment funds
Some investment funds are also subject to the deemed disposal rule, which can trigger tax at 38% on any gains every eight years, even if the investment has not been sold.
Fees and charges
Investment fees and charges can reduce your returns, so it is important to consider them alongside any tax you may pay. Some fees and charges may include:
- One-off charges: Usually a percentage of the amount you invest.
- Ongoing charges: Regular fees for managing and administering the fund
- Fund management/administration charges: Annual fees for record-keeping, fund valuation & ongoing advice.
- Performance fees: Charged if the investment makes a profit, usually as a percentage of the profit.
- Commission: Payment to a financial adviser from the business on whose behalf they sell products.
Learn more about how much financial advice can cost.
How is the Investment Account taxed?
Investments held within the Investment Account will not be subject to existing investment tax regimes, including deemed disposal. Instead, a tax-free threshold will apply.
If the average value of your account is below this threshold during the relevant tax period, you won't pay tax. If it is above the threshold, a flat rate of tax will apply to the amount above it.
The threshold and tax rate are expected to be announced as part of Budget 2027.
