Hiya, I’ve invested a small amount in FCIT just to test the waters. The dividend yield is currently only 1.39% so relatively low. I wrote a more detailed post about why I will NOT be forming the majority of my portfolio in investment trusts here https://mrsmoneyhacker.com/how-investment-trusts-compare-to-etfs/ but you can hear someone who IS investing more heavily in them and why in this podcast https://podcast.firepodcast.ie/e/ep-71-investment-trusts-with-andrew-driver/. As with everything personal finance, it is just that, personal. There are pros and cons with everything and you need to work out what works best for your own goals and risk tolerance. Hope that helps

Hi Meagan,

A great post. Just interested to know your two cents Re these alternative investments. Which F&C IT’s did you go for in the end? A lot of them pay dividends which is a downside rather than capital appreciation.

Hello Ed,
Hope your well, I too am interested in investment trusts as an alternative to the EFT’s as the tax situation here is frankly terrible. How did you get on a year on from this post?
Robert

Hi Aaron,
Just wondering did you buy some investment trusts as an alternative to EFT’s?

Hi Cormac, Hard for me to say without more info 🙂 Are you in the UK now and moving to Ireland? If so, it would be worth chatting with a cross border tax specialist who can advise on your particular situation. You’ll need to determine your tax residency, tax domicile and ordinary tax residence. You’ll also need to figure out the tax treatment of an ISA once you are tax resident in Ireland. I know for the Canadian equivalent of an ISA you no longer gain contribution room nor can you contribute once you are no longer tax resident. Also depending on your domicile, you may owe tax on the growth within the ISA in Ireland, possibly even without remitting to Ireland. Unfortunately never a simple question when it comes to cross border investing 🙂

As someone looking to begin investing in ETFs, and was thinking of setting up an ISA with Vanguard but now have learned that this can’t be done in ireland. Should I be looking to set up an ISA before using degiro to invest in stocks? This may a simple question but only starting out and trying to learn as much as possible. Love the blog btw 🙂

Hi John, I actually just did up a more detailed post on employee shares here if you want to check that out https://mrsmoneyhacker.com/how-to-pay-tax-on-employee-share-purchase-plans-in-ireland/. In terms of avoiding US estate tax I think you need to look into setting up a trust or something to that effect. Maybe reach out to a solicitor or accountant to see if they can clarify. I think the annual fees can be quite expensive so may only be worth opening a trust when you reach a large sum. I think I recall sums of around 1 million being mentioned as the sum that might justify the costs but I could be wrong.

Regarding employee share options, you mention a 40% tax. I’m not sure I understand in which case this tax has to be paid. I currently own over 60k ESPP stock. How can you avoid the US estate tax?
Thank you.

Hi Farhan, Thanks for reaching out. Unfortunately, I am not familiar with the specifics of cross border double taxation agreements between India and Dubai. I’d suggest finding a cross border tax specialist who is familiar with the double taxation treaty between India and Dubai (or if there even is one). They would be best suited to answer your question.