The short answer
At vesting
PAYE, USC + PRSI
normally handled through payroll
When you sell
CGT may apply
only on post-vesting growth
Best first record
Vest statement
keep value, date and shares
An RSU can feel like a bonus that arrives in shares. Tax-wise, it is usually employment income first and an investment second. That distinction matters because the value of the shares when they vest is not treated like a capital gain. It is normally put through Irish payroll alongside your salary.
The practical mistake to avoid is treating the shares you keep after sell-to-cover as already fully dealt with forever. Your vest statement establishes a tax point and a base value. If you later sell at a higher price, that later movement is a separate capital-gains question. Revenue confirms that free or discounted employment-related shares are chargeable to Income Tax, USC and PRSI, and that CGT may arise on disposal.
The two tax moments, in plain English
| Moment | What is taxed | What to save |
|---|---|---|
| RSUs vest | Market value of shares delivered | Vest date, price, share count and payroll slip |
| You sell | Any growth from vest value to sale price | Broker sale confirmation and costs |
Granting an RSU is generally not the same as delivering it. The important employee tax event is ordinarily when the restriction lifts and the shares or cash are delivered. Your plan documents can change the detail, so use the employer statement rather than a generic internet rule.
What sell-to-cover actually does
A sell-to-cover arrangement sells or withholds part of the vest so that payroll deductions can be funded. It often prevents a large cash deduction from your payslip, but it does not make the vest tax-free. A €50,000 vest can leave you with fewer shares, not because those shares vanished, but because a portion funded the PAYE, USC and PRSI due on the full employment benefit.
Before deciding whether to hold or sell the remaining shares, ask a more useful question than “have I paid tax already?”: how concentrated is my personal wealth in the company that also pays my salary? That is an investment-risk choice, separate from the payroll tax calculation.
Worked example: €50,000 of RSUs vest
Assume shares worth €50,000 vest while you are already in the higher-rate bands. The employer uses sell-to-cover and withholds a meaningful portion for payroll deductions. The shares you keep have a starting value of €50,000 in total for the purpose of measuring a later gain, subject to your exact records and circumstances.
If those retained shares are later sold for €56,000, the later price movement is €6,000 before allowable selling costs and any applicable annual exemption. That is the amount to examine for CGT, not the original €50,000 vest value again. If they are sold at €48,000, there is no gain on that sale, even though the earlier payroll charge at vesting still happened.
Deadlines and reporting: do not rely on memory
Keep a simple RSU folder for every vest: grant notice, vest statement, payroll slip, broker confirmation, sale confirmation and any foreign-tax documents. Revenue's rules distinguish employment-related share awards, options and approved schemes, so a broker screen alone is not enough evidence.
CGT has its own payment and return deadlines, which differ depending on when in the year you dispose of shares. Check Revenue's current CGT guidance before filing or paying. If your employer uses a non-standard plan, cross-border payroll or you have sizeable gains, get advice early rather than reconstructing the trail at year end.
Selling the shares: payroll does not do this part for you
Revenue is explicit that a disposal of RSU shares may be subject to CGT and must be reported even when no CGT is due. Your employer's payroll job ends at vesting. A broker statement shows proceeds, but it does not calculate your Irish gain, apply losses, or file your Irish return.
Separate the sale price from the vest price and record brokerage costs. Revenue's current guidance says CGT on disposals from 1 January to 30 November is payable by 15 December of that year; CGT on December disposals is payable by 31 January of the following year. A return is generally due by 31 October in the following year. Check current Revenue instructions before acting because filing circumstances differ.
A five-minute RSU checklist before each vest
- Download the vest confirmation and note the market price and number of shares before sell-to-cover.
- Check the payroll slip to see how Income Tax, USC and PRSI were funded.
- Save the net share count and broker account statement.
- Decide whether holding the shares fits your investment risk, rather than letting inaction decide.
- When you sell, save the confirmation beside the original vest record.
Turn a stock-heavy offer into a real monthly number
Use the salary calculator for the cash pay first. Then value equity separately, with a clear vesting schedule and a downside scenario. Mixing the two makes a job offer look more certain than it is.
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Frequently asked questions
Are RSUs taxed twice in Ireland?
Not on the same value. The value at vesting is employment income and normally goes through PAYE, USC and PRSI. If you hold the shares and they later rise in value, only that later increase can be subject to Capital Gains Tax when you sell.
Does my employer handle RSU tax in Ireland?
For an RSU share award, employers normally operate payroll deductions. Check the vest statement rather than assuming every deduction or later reporting obligation is complete, especially if you sell shares after vesting.
What is sell-to-cover?
Sell-to-cover is where enough vested shares are sold or withheld to fund payroll deductions. It is a funding mechanism, not a separate tax relief. Keep the vest price and sale confirmations for your records.
Do I pay CGT if I sell RSUs immediately?
An immediate sale may create little or no gain because the sale price is close to the value used at vesting. It can still be a disposal, so retain the evidence and check the rules that apply to your situation.
Useful next steps
This guide is general information, not tax, financial, immigration or legal advice. Rules and individual circumstances matter. Confirm an important decision with Revenue, the Department of Enterprise, Tourism and Employment, or a qualified adviser.