How Are RSUs Taxed in Ireland?
A client told me last year he'd been "saving" in his company shares for six years.
He hadn't saved anything. He'd built a single-stock bet with money he'd already paid 52% tax on, and he had no idea a second tax bill was waiting when he sold.
This is the gap I want to close for you. RSU tax in Ireland is not complicated once you see it as two separate moments.
Moment one: vesting
When your RSUs vest, the market value of those shares on that day is treated as salary.
You pay Income Tax, USC and PRSI on it. For most tech employees in Ireland that means the top rates apply, so a large slice goes straight to Revenue. Your employer takes it through payroll, often by selling some of the shares automatically to cover the bill ("sell to cover").
So when the shares land in your account, the income tax on them is already paid. That money is now yours, already taxed, sitting in one company's stock.
Moment two: selling
From the day they vest, the clock starts on a second, separate tax: Capital Gains Tax.
If you sell later for more than the value at vesting, the growth is a capital gain. You pay CGT at 33% on that gain, after a 1,270 euro annual exemption.
A quick example. Say 10,000 euro of RSUs vest. You've already paid income tax on that 10,000 euro. A year later they're worth 13,000 euro and you sell. Your gain is 3,000 euro. Knock off the 1,270 euro exemption and you pay 33% on 1,730 euro, so about 571 euro.
If the shares had instead dropped to 8,000 euro, you'd have a 2,000 euro loss you could carry against other gains. No magic. Just normal CGT.
The part your employer does not do
Here is what catches people.
Your employer handles the income tax at vesting. They do not handle the CGT side. You have to report the sale to Revenue yourself, and you have to file even if you owe nothing after the exemption.
The deadlines:
- Sold between 1 January and 30 November: pay the CGT by 15 December that year.
- Sold in December: pay by 31 January the following year.
- File the CGT return by 31 October of the year after the sale.
Miss them and you're paying interest and penalties on top. Nobody at work reminds you, because to payroll the job was done the moment the income tax came off.
What I do with mine
I sell on the day they vest and reinvest into a global index fund.
The income tax is already paid, so holding is not "letting my investment grow." It's choosing, fresh, to keep a concentrated bet on one company. I'd rather own the whole market than guess whether my employer beats it. Across 25 public companies my clients work for, only 9 beat the index over five years.
That's the short version. The full strategy, including where your pension fits first, is in the main guide: RSU & ESPP tax in Ireland: the complete guide.
This is general information, not personal advice
These are the rules as they stand, not a recommendation for your situation. If you want help working out your own numbers, that's what I do.
I'm Sjoerd Bak, a qualified financial adviser. No products, no commission. I help tech professionals in Ireland keep more of what they earn.
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Frequently asked questions
At what rate are RSUs taxed in Ireland?
At vesting, RSUs are taxed as income (Income Tax, USC and PRSI), so most tech employees pay at the higher rates. Any growth after vesting is taxed at 33% Capital Gains Tax when you sell.
Does my employer pay the tax on my RSUs?
Your employer takes the income tax at vesting through payroll, often by selling some shares to cover it. They do not handle the Capital Gains Tax when you later sell. That part is your responsibility.
Do I have to tell Revenue when I sell RSU shares?
Yes. You must file a CGT return yourself, even if no tax is due after the 1,270 euro exemption.
When do I pay CGT on RSU shares in Ireland?
For sales between January and November, pay by 15 December that year. For December sales, pay by 31 January. File the return by 31 October the following year.