RSUs in Ireland — vest, sell, and what gets taxed

Vesting 101

A grant is a promise of future shares. Vesting is when the promise becomes yours. Typical schedules:

• 4-year cliff + monthly: nothing for 12 months, then 1/48 each month for 36 months. Common at US tech.
• 4-year quarterly: 1/16 of the grant each quarter. Common at later-stage companies.
• 3-year, 1/3 each year: simpler schedules at smaller employers.

Each vesting event is a separate taxable event in Ireland. The fair market value of the shares at vest is treated as employment income.

What happens at vest

Since 1 January 2024, the employer is required to withhold income tax (PAYE), USC, and PRSI through payroll on the value of the vesting RSUs. Before 2024, employees self-assessed via Form RTSO1 — if you have pre-2024 vests you didn't file, that's a Revenue inquiry waiting to happen.

For most Irish PAYE workers at higher-rate, that's an effective tax of roughly:

• 40% PAYE
• + 8% USC
• + ~4.25% PRSI
• = ~52% tax on the vest value

So for €10,000 of RSU value vesting, you keep about €4,800 net. Source: Revenue: RSU tax treatment.

Sell-to-cover vs. net-settle vs. cash

How you actually receive the post-tax shares varies by employer:

• Sell-to-cover: the broker auto-sells enough shares to pay the tax. You receive the remaining ~48% as shares. Cash flow doesn't change.
• Net-settle: the company keeps enough shares to cover the tax and gives you the balance. Same effective outcome.
• Cash: rare — some plans let you pay the tax in cash and keep all the shares. Means a real cash outflow at vest.

Your cost basis after vest

This is the bit that confuses people. After the dust settles, your cost basis in the vested shares is the fair market value at vest — NOT zero. You've already paid tax on that value as income.

Example: 100 RSUs vest at €100/share. Income tax of ~€5,200 goes to Revenue. Your cost basis is €10,000 (€100 × 100), even though you paid nothing out of pocket.

When you sell

Selling the post-vest shares is a CGT event:

• Gain = (sale price − cost basis at vest) × number of shares sold
• Tax = (gain − €1,270 annual exemption) × 33%
• FIFO matching applies if you've had multiple vests of the same stock — the CGT calculator handles this

If the shares dropped between vest and sale, you have a CGT loss. Losses can offset other gains in the same year and carry forward indefinitely. They can't, however, offset the income tax you already paid at vest — that's gone.

The cashflow trap nobody warns about

When to sell — diversification vs concentration

A common rule of thumb: don't let any single stock exceed 10–20% of your investable wealth. RSUs make this hard because they continuously add to your exposure. Each vest is a fresh decision:

• Sell at vest: lock in diversification. The "would I buy this stock today with after-tax cash?" test usually says no.
• Hold: bet on continued appreciation. You're already concentrated by your salary — adding equity exposure compounds the bet.

Selling at vest is also tax-cheap: you might trigger a small CGT event on a tiny gain (or none at all if the price hasn't moved since vest), well within the €1,270 exemption.

If your shares are in USD or GBP

The vest income is converted to EUR at the rate on the vest date — usually your payroll provider does this for you. When you sell, you convert the proceeds at the rate on the sale date. The CGT calculator handles ECB historical rates if you need to verify your numbers.

Next

• Salary calculator — open the Employer benefits panel and enter annual RSU vest value
• CGT calculator — model post-vest disposals with FIFO + €1,270 exemption
• CGT exemption strategies — pair RSU sales with the annual €1,270
• Why ETFs are different — RSU shares post-vest are CGT, not deemed disposal