RSU tax in Ireland: What you need to know

If you work for an Irish company, one of the benefits you might receive as part of your new starter or performance-related package are Restricted Stock Units (RSUs).

While RSUs are great to have, as they mean you’ll end up owning shares in the company, they may also come with tax implications.

Here in this helpful guide, we’ll run through everything you need to know about Ireland RSU tax. This includes info on income tax and capital gains tax, including rates and who is affected.

We’ll also show you how the Wise account could be the perfect solution for when it comes to selling your RSUs in a different currency. A Wise account lets you hold and convert between 40+ currencies, including euros, for low fees* and mid-market exchange rates.

But first, let’s take a quick look at what RSUs are and how they work.

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What are RSUs?

Restricted Stock Units (RSUs) are a type of employee compensation or benefit issued by a company. They are essentially a promise to transfer shares in the company to an employee according to a set schedule.

A company may want to offer them as an incentive for new employees, helping them secure the best talent. Or they may grant RSUs to staff on different occasions, such as on an annual basis, to reward long service or when the company reaches a particular milestone or performance-related target.

The key thing to note is that RSUs don’t have monetary value at the time they’re granted. After a set period of time known as a ‘vesting period’, the RSU will convert to actual stock which can be sold for a cash value.

Read more about the difference between RSUs and stock options here in our handy guide.

When you sell RSUs, there will almost certainly be tax implications. This is what we’ll be exploring below, specifically in relation to Ireland’s RSU taxes. The country has its own tax laws, and it’s crucial to understand how they’ll affect you in this situation.

How are RSUs taxed in Ireland?

Now, let’s run through how RSUs are taxed in Ireland, including tax rates and who is affected.

When are RSUs Taxed? (Vesting vs. Sale)

In Ireland as in many countries worldwide, RSUs aren’t taxed at the time they are granted.

They only become liable for tax at the end of the vesting period. This is the point when they are considered ‘vested’ and are transferred over to you as either shares or the cash equivalent (depending on your employer's RSU scheme).

At this stage, you’ll need to pay income tax on the market value of the shares on the date of vesting. You may also need to pay Universal Social Charge (USC) and Pay Related Social Insurance (PRSI). ¹

If you receive the cash equivalent of the shares instead of the shares themselves, this is known as cash-settled RSUs. In this scenario, you’ll need to pay income tax, USC and PRSI on the cash payment. This will be deducted through payroll by your employer, who will pay the tax directly to Ireland’s tax authority.¹

Want to sell your shares? In Ireland as in many other countries worldwide, the profits from selling investments are subject to capital gains tax (CGT).¹

It can be more complicated if you’re a tax resident in another country. For example, if you are still considered a tax resident in the UK, you may have to pay capital gains tax when selling stocks under the UK’s tax rules.

This is why it’s crucial to seek professional tax advice personalised to your specific circumstances. This can help you to understand your obligations and paying either too much or too little tax.

Breakdown of Income Tax, Capital Gains Tax, and Other Levies

When your RSUs vest, you will be liable for income tax and other employment-related taxes based on their market value.

To give you an idea of what your tax bill is likely to be, here are Ireland’s income tax rates for the year 2025:²

The figures above are for a single unmarried person - they differ for lone parents and married people with one or two incomes. Tax credits and personal allowances can also reduce the amount of income tax you pay.

The Universal Social Charge (USC) is payable on incomes above €13,000, with rates ranging from 0.5% to 11.% dependent on income.³ Pay Related Social Insurance (PRSI) rates vary depending on the nature of your work.

There’s also capital gains tax to consider, for when you decide to sell your shares. This is set at a flat rate of 33% in Ireland.⁴

And as we mentioned above, you’ll also need to check whether you’re liable for CGT, income tax or other levies back in the UK.

Who is affected by RSU taxes in Ireland?

If you are Irish resident (for tax purposes) at the time your RSUs vest, they will be fully taxable under the country’s income tax rules. You’ll also be liable for capital gains tax (CGT) when you sell your shares.

If you’re not an Irish resident at the time your RSUs vest or you sell them, neither income tax¹ or capital gains tax⁴ will be due.

It’s wise to get professional tax advice though, just to make sure other taxes (or another country’s tax rules) won’t apply in your circumstances.

Use Wise to save on unnecessary currency fees on your next share or RSU payout

After reading this, you should have a better idea of how tax on RSUs works in Ireland - and how the country’s tax laws apply to you.

Key takeaways to remember:

• RSUs are only taxed when vested, not when granted
• You may have to pay income tax when your RSUs are vested
• You may have to pay capital gains tax (CGT) when you sell your shares
• If you’re not an Irish resident for tax purposes, you won’t have to pay income tax or CGT on RSUs in Ireland - but you may have to in your country of residence.
• It’s crucial to get professional tax advice to understand your tax obligations and avoid double taxation, especially if you’re a UK tax resident.

But it’s also important to think about the best way to manage share profits and dividends - especially if it’s in multiple currencies.

Without the right type of account or transfer service, you could end up losing out to high fees and poor exchange rates for currency conversion.

Wise is the ideal solution, helping you manage your money in 40+ currencies including euros (EUR), and convert between them whenever you need to.

Thanks to its low fees* and mid-market exchange rates, you could save a bundle on currency conversion fees. For an example of how it could benefit you, check out this guide to using Wise for RSU payouts in USD.

Ready to make new investments? It’s easy to fund your portfolio or top up an account on a trading platform using your Wise account - which lets you securely send money worldwide in just a few clicks.

FAQs about RSU tax in Ireland

Still have questions about RSU tax in Ireland? Take a look below for a handful of commonly asked questions and answers that you may find useful.

How do RSUs work in Ireland?

Restricted Stock Units (RSUs) issued by Irish companies tend to work in a similar way to other countries.

They are granted as part of employee compensation packages, often linked to performance targets or other key milestones.

There will be a set vesting period, after which they become shares and can be sold - and of course, become taxable.

How to avoid paying capital gains tax on shares in Ireland?

If you are not an Irish resident for tax purposes at the time of selling shares acquired from RSUs, you won’t be liable for capital gains tax (CGT) in Ireland.

If you are an Irish tax resident, it’s useful to know that the first €1,270 EUR of gains is tax-free. After that, you’ll need to pay CGT at the standard rate of 33%.⁴

How to avoid double taxation on RSU in Ireland?

If you live and work between two countries (i.e. the UK and Ireland), there’s a risk that you end up paying tax on the same income in both jurisdictions. This is known as double taxation.

Tax can be complicated and can depend on your personal circumstances, so the best way to avoid double taxation on RSUs in Ireland is to seek personalised advice from an overseas tax specialist.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates, and it is not intended as a substitute for obtaining advice from a tax advisor or any other professional.

Sources used:

Sources last checked on date: 05-Mar-2025