CALCULATOR · INVESTING

ETF vs investment trust calculator

How Ireland’s 41% exit tax and 8-year deemed disposal rule affect your returns.

Illustrative only. Tax rules are complex — consult a tax professional or Revenue.ie for your specific situation.

€5,000

€500€100,000
1%15%

Global equities have averaged ~7–8% historically. This is not a prediction.

1 yr35 yr

Irish Revenue requires a minimum 8-year holding period for exit tax purposes, but you can model shorter periods to compare growth.

2 deemed disposals at years 8, 16.

Tax rates used

UCITS ETF exit tax41%
CGT rate (shares)33%
CGT annual exemption€1,270
Deemed disposal cycleevery 8 years

UCITS ETF

€13,466

net after all tax

Final value€19,348
Total gain€14,348
Total tax paid€5,883
Effective rate41%

Investment trust

€15,033

net after tax

Final value€19,348
Total gain€14,348
Tax paid€4,316
Effective rate30.1%

With these assumptions, the investment trust leaves you €1,567 better off than the UCITS ETF over 20 years — mainly because the 33% CGT rate is lower than the 41% exit tax, and there are no deemed disposal events along the way.

Deemed disposal events (ETF)

Yr 8

Portfolio value €8,591 · gain since last event €3,591

Tax due

€1,472

Yr 16

Portfolio value €14,761 · gain since last event €6,170

Tax due

€2,530

Yr 20

Final sale — exit tax on remaining gain

Tax due

€1,881

What this models

  • UCITS ETF: Most mainstream index funds (Vanguard, iShares, SPDR) sold through brokers to Irish residents. 41% exit tax, 8-year deemed disposal rule, no CGT exemption.
  • Investment trust: A listed company (e.g. Scottish Mortgage, Ruffer). Taxed as CGT at 33% on disposal. One €1,270 exemption in year of sale.
  • Assumes lump-sum investment, no ongoing contributions, and growth-only (no dividends distributed). Deemed disposal taxes are paid separately and not deducted from the portfolio.

Want to understand ETF investing in Ireland? Read the investing lesson →