15 Questions to Ask Your Tax Advisor (+ Answers)

Knowing which questions to ask can really make all the difference in understanding your tax liabilities and ensuring compliance.

But with tax obligations varying across different types of taxpayers, it’s not always easy to know where to start. 

To help, our team of experienced tax advisors in Ireland is here to outline some of the key questions you should be asking as a:

• Non-resident or expatriate
• Investor
• Property owner or landlord
• Retiree or pensioner
• High-income earner

Tax Questions for Non-Residents & Expatriates in Ireland

As a non-resident or expatriate, understanding your tax obligations in Ireland can be complex. You may be subject to special tax rules depending on the amount of time you’ve spent in the country during a tax year, and you may also need to consider Double Taxation Agreements and reliefs between Ireland and the country you’re moving to/from.

Here are 15 questions to ask a tax advisor to help clarify your tax situation and ensure the best outcomes as an expat or non-resident:

As a non-resident, what Irish taxes am I liable for?

Non-residents are liable for Irish taxes on Irish-sourced income and potential Capital Gains Tax (CGT) on assets located/deriving their value from Ireland. Your tax residency status and (sometimes) the source of your funds will be important for determining your tax liabilities, so it’s essential to always keep detailed records as an expat or non-resident in Ireland.

How do Double Taxation Agreements affect my tax situation?

Double Taxation Agreements (DTAs) prevent double taxation on the same income by outlining which country has taxing rights. These agreements can help you avoid paying taxes on the same income in two countries, so familiarising yourself with the specific DTA between Ireland and your country of origin/residence is essential.

What are the tax implications of remitting income to Ireland?

The remittance basis of taxation generally applies if you are a resident but non-domiciled in Ireland. Because the remittance basis of tax is determined case-by-case, it’s vital to consult with a tax expert before making assumptions about your tax liabilities.

How does my residency status impact my tax obligations?

Your residency status determines whether you’re only taxed on worldwide or Irish-sourced income. This status is based on the number of days spent in Ireland. Additionally if you have spent three consecutive years in Ireland you will become ordinarily resident. This has tax implications also. As an expat, it’s advised to maintain residency records and documentation to accurately determine and support your residency status.

Are there any specific tax considerations for expatriates living in Ireland?

Expatriates need to consider worldwide income for tax purposes, as well as special expatriate tax reliefs and social security implications. For example, exploring potential expatriate tax reliefs like the Special Assignee Relief Programme (SARP) may be worthwhile in reducing your tax burden.

Does foreign income or assets need to be reported to Irish tax authorities?

Foreign income and newly acquired assets/foreign bank accounts must be reported under Irish law and potentially under the Common Reporting Standard (CRS). Failure to report can result in penalties, so always use detailed and accurate records to report foreign income and assets correctly.

What tax credits or deductions can I claim as a non-resident?

Non-residents may be eligible for certain Irish tax credits and deductions, depending on their residency status, citizenship and the nature of their income. Be sure to speak directly with a tax advisor to investigate which tax credits or deductions might be available to you, even as a non-resident.

How does the domicile levy affect me?

Generally, the domicile levy applies to Irish-domiciled non-residents with substantial worldwide income and Irish property holdings — regardless of citizenship. It ensures that high-income individuals contribute a minimum amount of Irish tax.

What are the tax implications of renting out property in Ireland while living abroad?

Whether in Ireland or abroad, you must still pay Local Property Tax (LPT) on residential rental properties. Non-resident landlords will also need to consider general income tax rules and speak with a local tax advisor to discuss whether tenants or collection agents must withhold tax at source.

 How do I handle taxes on pensions or retirement funds from abroad?

Foreign pensions and retirement funds may be subject to Irish tax, though Double Taxation Agreements (DTAs) can provide relief to avoid paying tax more than once on the same income. It’s also important to consult with your tax advisor about the structure of your pension withdrawals as part of a tax planning strategy.

 What is Exit Tax, and could it apply to me?

Exit Tax applies to unrealised gains in certain investment funds on the 8th anniversary of investment. It also applies if the investment owner dies. Essentially, it’s a tax on a deemed disposal of your investments — which is why it’s vital to consider if these types of investments are appropriate for you from a tax perspective. 

Can I avail of the Foreign Earnings Deduction (FED)?

FED is available for Irish residents working abroad in certain countries, reducing taxable income from foreign earnings. However, because FED’s eligibility criteria and documentation can be complex, it’s a good idea to speak with a tax advisor before making assumptions about your entitlement.

 How do I navigate inheritance and gift taxes as a non-resident?

Non-residents may have Capital Acquisitions Tax (CAT) obligations on gifts or inheritances if they give/pass assets to an Irish resident or ordinary resident. Additionally, they may have an Irish CAT liability if they receive a gift/inheritance from an Irish resident or ordinary resident. Always plan your estate with a tax expert to ensure compliance and minimise CAT where possible.

 What are the tax implications of transferring money to Ireland?

Generally, there is no tax on transferring money to Ireland, but the source of funds and the taxpayer’s domicile will drive the related tax implications. To avoid scrutiny from tax authorities and support your case during revenue audits, retain documentation relating to the transfer of funds and understand your domicile position.

 How do changes in tax laws in Ireland affect me as an expatriate?

Staying informed about tax law changes is crucial, as they could impact your residency status, income taxation, and taxation of your investments— even over the course of a few tax years. It’s important to regularly consult your tax advisor after moving to maintain compliance.

Tax Questions for Investors in Ireland

Investing in Ireland comes with its own set of tax implications. Asking the right questions can help you understand your liabilities and take advantage of available reliefs to optimise your investment returns.

To maintain tax compliance and plan your tax affairs more effectively, here’s our list of 15 key questions to ask your tax advisor:

How are my investments taxed in Ireland?

In Ireland, investment income/gains are subject to taxes like Capital Gains Tax (CGT), Income tax, Dividend Withholding Tax, and Exit Tax, depending on the type of investment. 

What is Capital Gains Tax, and how can I minimise it?

CGT is usually charged on the gain from the sale of an asset. It might be possible to leverage annual exemptions or offset your losses to minimise your CGT liability, but this should be discussed with your tax advisor before making assumptions. 

Are dividends from Irish and foreign stocks taxed differently?

Dividend income is subject to tax, with potential differences in taxation for Irish vs. foreign dividends, particularly regarding withholding taxes. An experienced tax advisor can more accurately review your portfolio and determine your tax obligations.

How do Exit Taxes on life assurance policies and investment funds work?

Exit Tax may be charged on gains in life policies and investment funds, and for Irish products, the fund or policy provider typically withholds it.

What tax considerations should I be aware of for property investments?

Tax considerations for property investments in Ireland include income tax on rental income, CGT on sale, and potential reliefs like the Rent-a-Room scheme. Explore all available tax reliefs, deductions, and obligations with a tax expert to stay compliant and maximise returns on your property investments.

Do I need to declare income from overseas investments?

Foreign investment income must be considered when determining your reporting requirements in Ireland. But, because relief may be available under Double Taxation Agreements, it’s important to maintain detailed records of foreign income to ensure accurate reporting.

Are there tax-efficient investment vehicles I should consider?

When it comes to improving your tax efficiency, consider vehicles like approved pension funds, the Employment Investment Incentive Scheme (EIIS), or other schemes offering tax-efficient investment options.

How do pension contributions affect my investment income?

Pension contributions can reduce your taxable employment/self-employment income, potentially impacting the tax rate you ultimately pay on investment income. As an investor in Ireland, consulting with a tax planner is always advised.

What are the implications of investing in REITs?

Real Estate Investment Trusts (REITs) offer a way to invest in property with certain tax advantages, like no CGT. When creating an effective tax planning strategy, a tax advisor can discuss REITs’ benefits.

Can I offset investment losses against other income or gains?

Investment losses can often be offset against capital gains but not against other income types. It’s also important to note that certain conditions may apply (e.g., bed and breakfast rules for shares) and should be discussed directly with your tax advisor.

How are cryptocurrencies taxed in Ireland?

Depending on the nature of the activities, cryptocurrency transactions can trigger CGT or income tax in Ireland. This is why it’s essential to keep detailed transaction records and consult a tax advisor about evolving tax rules.

What tax reliefs are available for investing in start-ups or SMEs?

Tax reliefs like the Employment Investment Incentive Scheme (EIIS) offer incentives for investing in certain start-ups or SMEs. Your tax advisor can guide you on any other reliefs you may be eligible for.

How do I handle taxes on inheritance or gifted investments?

Inherited or gifted investments will likely be subject to Capital Acquisitions Tax (CAT), though potential exemptions or reliefs may apply, depending on the type, timing, or terms of your inheritance or gifted investment.

Are there specific tax considerations for high-risk investments?

High-risk investments might offer higher rewards but will also require careful tax planning regarding gains or losses.

How do changes in tax laws affect my investment strategy?

It’s crucial to stay informed about tax law changes to adapt your strategy for compliance and efficiency. As a tax-efficient investor in Ireland, regularly consult your tax advisor and stay updated on tax law changes that could impact your investment strategy.

Tax Questions for Property Owners and Landlords in Ireland

As a property owner or landlord in Ireland, effective property management requires a deeper understanding of tax laws and optimisation strategies than the average taxpayer. 

Knowing the right questions to ask beforehand can help you stay on track, avoid scrutiny from tax authorities, and improve your financial well-being.

Here are 15 tax-related questions to start with:

What expenses can I deduct as a landlord?

As a landlord in Ireland, deductible expenses may include mortgage interest, maintenance, insurance, and property management fees. To maximise these deductions, be sure to keep meticulous records of all expenses related to your rental properties.

How is rental income taxed in Ireland?

Rental income is usually subject to income tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI), with allowable deductions for certain expenses.

Are there tax implications for selling a rental property?

Selling a rental property in Ireland can trigger Capital Gains Tax (CGT), though with careful tax planning, exemptions and reliefs may apply in certain conditions.

How does the Rent-a-Room scheme work for tax purposes?

Income from renting out a room in your home may be exempt from tax up to a certain threshold. However, the Rent-a-Room Relief can only be claimed by individual taxpayers living in the home and is not available to corporate entities.

What are the tax considerations for non-resident landlords?

Non-resident landlords must still pay tax on Irish rental income, with collection agents, management companies, or tenants responsible for withholding tax at source.

How do I handle taxes on Airbnb or short-term rentals?

Income from short-term rentals is taxable, with specific conditions for deductions and VAT considerations. Always speak to a tax advisor and maintain detailed records of all short-term rental income and expenses to ensure compliance and optimise deductions.

What is Pre-Letting Expenditure, and can I claim it?

Certain expenses incurred before letting a property (or Pre-Letting Expenditure, e.g., maintenance and ground rents) may be possible to claim deductions against rental income. However, this should always be verified before incorporating this relief into your financial planning.

Are there capital allowances for refurbishing a rental property?

Capital allowances for refurbishing can be claimed on certain qualifying expenditures, but refurbishments should be discussed with a tax planning expert before they are arranged. 

How do Local Property Taxes (LPT) affect my rental properties?

LPT is charged annually based on the property’s market value and is a deductible expense against rental income. It applies to all Irish residential property owners, regardless of whether you live in Ireland or abroad.

What are the VAT implications of property development or renovation?

The VAT implications of property development or renovation projects will depend on the nature of the work. Renovations may attract VAT, while new developments might be zero-rated. Advice is always warranted in this area.

How do I navigate Capital Gains Tax on property sales?

CGT is generally due on the gain from selling a property, though potential reliefs may apply if the property was your primary residence. This is why retaining all documentation relating to your property is essential to calculate the potential CGT liability accurately.

How does joint ownership or partnership impact property tax?

Tax implications will vary depending on the ownership structure and agreement between partners. Clearly define ownership and partnership agreements to avoid confusion to ensure fair and accurate tax reporting.

Are there tax considerations for converting a property for a different use (e.g., commercial or residential)?

If a property is converted for a different use, there may be potential VAT implications and changes in how income or gains are taxed. Always plan property conversions with a tax advisor to optimise outcomes and avoid potential tax issues.

What records and documentation should I maintain for tax purposes as a landlord?

As a landlord in Ireland, it’s essential to maintain detailed records of all income and expenses, lease agreements, and communications related to the property.

How do changes in tax laws affect my rental income and property investments?

Changes in tax laws can impact rental income, allowable deductions, and CGT on property sales. This is why it’s vital to stay informed about tax law changes and consult your tax advisor regularly to adapt your property investment strategy.

Tax Questions for Retirees and Pensioners in Ireland

Retirees and pensioners in Ireland face unique tax considerations that are often overlooked or misunderstood.

To avoid this, here are 15 important questions to ask your advisor to help you understand your tax obligations and optimise your retirement income.

How is my pension income taxed?

Similar to regular income in Ireland, pension income is subject to income tax, Universal Social Charge (USC), and PRSI (if under a certain age) — though tax credits and reliefs may be available to reduce your overall tax liability.

What tax credits and reliefs are available to me as a retiree?

Several tax credits (like the Age Tax Credit and Medical Insurance Relief) may be available to a retiree. However, because each tax situation differs, always consult a tax advisor to ensure compliance and maximise tax savings.

How do I handle taxes on any additional income (e.g., part-time work, investments)?

Additional income as a retiree or pensioner will likely still be subject to tax and must be declared as part of your annual tax return. In this instance, speaking directly with a tax consultant is the best way to avoid scrutiny and potential legal implications.

What are the tax implications of withdrawing a lump sum from my pension?

Lump sums from pensions may be tax-free up to a certain threshold, but greater amounts may be taxed.

Are there any tax considerations for downsizing or selling my home?

Principal Private Residence Relief may exempt you from Capital Gains Tax (CGT) on the sale of your home, but should also be discussed with a tax professional before making assumptions. 

How do I manage taxes on foreign pensions or income?

Foreign pensions and income must always be declared to Irish tax authorities — though potential relief under Double Taxation Agreements may apply in certain circumstances.

What are the inheritance tax implications for passing on assets to my heirs?

Inheritance above certain thresholds is generally subject to Capital Acquisitions Tax (CAT). This is why it’s important to plan your estate ahead of time to optimise benefits for your heirs.

How do gift tax rules affect me regarding financial support to family members?

Gifts above certain thresholds may also be subject to tax as part of Capital Acquisitions Tax (CAT). Before transferring funds to family members, consulting with a tax advisor is always advised.

Are there any tax-efficient ways to donate to charities or causes?

Under The Charitable Donation Scheme, it may be possible to claim tax deductions for donations to eligible charities and causes, with the relief being passed to the charity. 

What tax reliefs are available for medical expenses or nursing home care?

For those incurring medical expenses or in nursing home care, it may be possible to claim tax relief on qualifying medical expenses at the standard tax rate (20%). However, because every case is unique, and other factors like The Fair Deals Scheme may be at play — it’s vital to consult with a tax specialist before making assumptions about entitlements. 

How does marriage or the death of a spouse affect my tax situation?

Your tax situation may change upon marriage or the death of a spouse. This can affect tax credits, rate bands, and inheritance tax considerations. This is why changes in life circumstances should always be reported to tax authorities, and speaking with a tax professional is always advised.

What are the tax considerations for investments or savings at this stage of life?

Pensioners or retirees with investments or savings should always consider tax-efficient investment options like pensions, savings bonds, and other vehicles to ensure alignment with retirement and financial goals. Independent professional financial advice should be sought.

How do I handle taxes on rental income if I own additional properties?

As a pensioner or retiree, rental income is still taxable and must be declared on your annual tax return. Understanding PRSI and USC implications is essential as the rates due change as the taxpayer ages (e.g. a possible reduced USC rate above the age of 70).

What should I know about tax credits for elderly care or home improvements?

Credits and reliefs may be available under specific schemes for elderly care and certain home improvements. Explore available schemes to reduce costs and tax liabilities.

How do I ensure my will and estate plan are tax-efficient?

As a pensioner or retiree, you should regularly review your will and estate planning strategy to optimise tax efficiency and ensure it reflects your current wishes. This can be done by engaging with a tax advisor specialising in estate and inheritance planning.

Tax Questions for High-Income Earners in Ireland

As a high-income earner in Ireland, you’ll likely want to dive straight into compliant tax planning strategies (including the potential deductions and reliefs available to you!). 

However, it’s important to be informed ahead of time before you can effectively optimise your tax situation. Especially for business owners or executives applying for certain schemes or licences in Ireland, your ability to obtain a tax clearance certificate may depend heavily on your approach to tax planning.

To give you a head start, here are 15 questions we recommend asking before putting your tax planning strategy together.

How can I minimise my overall tax liability as a high-income earner in Ireland?

As a high-income earner in Ireland, strategies to compliantly minimise your overall tax liability include maximising deductions, leveraging tax credits, and utilising tax-efficient investment vehicles under the advice of a tax professional (e.g., pension funds).

What are the implications of the High-Income Earner Restriction (HIER) on my tax liability?

HIER limits the use of certain reliefs and exemptions to ensure that you pay a minimum tax as a high-income earner. It’s still worth speaking with a tax advisor who can examine your income structure and optimise your overall tax position.

Are there specific investment strategies that are tax-efficient for high-income individuals?

High-income individuals can benefit from various tax-efficient investment strategies. These include investing in pensions, EIIS, and other vehicles like Approved Retirement Funds (ARFs) and vested Personal Retirement Savings Accounts (PRSAs), which offer tax-efficient growth or income.

How does my income level affect my pension contributions and related tax reliefs?

Higher-income allows for larger pension contributions, significantly reducing your taxable income. However, these contributions are subject to annual and lifetime limits, so careful planning is needed to maximise benefits without exceeding these thresholds.

Can you advise on tax-efficient ways to manage capital gains and dividends from my investments?

Managing capital gains and dividends tax-efficiently can involve using annual Capital Gains Tax exemptions, timing the sale of assets to offset gains with losses, and investing in tax-efficient vehicles. But, because each high-income earner’s case is unique, working with a professional tax advisor who can develop a custom tax planning strategy is advisable.

What are the tax considerations for owning property or real estate as a high-income earner?

Owning property or real estate involves several tax considerations, including rental income tax, Capital Gains Tax (CGT) on sales, and potential benefits from property-based investments like REITs. 

How can charitable contributions impact my tax situation?

In Ireland, charitable contributions made by high-income earners may qualify for tax relief, effectively increasing the value of your donation for the recipient.

Are there any particular tax planning strategies for stock options or share schemes at my income level?

Stock options and share schemes have specific tax implications depending on their structure and timing. Understanding these can help you optimise when to exercise options or sell shares to minimise tax — which is why speaking directly to an experienced tax advisor or planner is so important. 

Can you guide me on estate planning and inheritance tax strategies suitable for high-income earners?

Effective estate or inheritance planning can help minimise inheritance tax exposure by setting up trusts, gifting, and obtaining relevant reliefs. However, professional tax advice should always be sought to avoid compliance issues.

How should I approach tax planning for any foreign income or assets?

Due to local tax rules and potential double taxation issues, foreign income and assets bring additional complexity. This is why, as a high-income earner, it’s essential to keep detailed records of foreign income and assets and consult with tax experts before making assumptions about your tax liabilities.

What measures can I take to reduce my exposure to the Universal Social Charge (USC) legally?

As you age, your USC exposure decreases. For individuals over 70, USC is not due for certain income levels, but planning is necessary to maximise this benefit.

What are the tax implications of trust funds or other financial vehicles for wealth management?

Trust funds and similar financial vehicles have specific tax treatments that can provide estate and wealth planning advantages. Still, they’re also subject to compliance requirements that should always be discussed with a tax consultant. Anti-avoidance legislation exists concerning non-Irish trusts and should be considered with a tax expert’s assistance.

How do changes in tax legislation specifically impact high-income earners in Ireland?

Tax legislation changes can have a big impact on high-income earners in Ireland. These changes can include differing tax rate bands, relief caps updates, and even introducing completely new taxes. Staying informed and proactive in your tax planning is the only way to ensure tax efficiency and mitigate non-compliance risk.

Are there tax-efficient savings or investment accounts particularly beneficial for my income bracket?

In Ireland, PRSAs, pensions, and certain investment funds may offer better tax efficiency for high-income earners, providing tax relief and growth opportunities. Diversifying your investments across tax-efficient accounts can also help optimise your overall financial strategy and reduce your tax burden.

How can I manage the tax implications of international business interests and income?

Understanding the tax implications of your global income is crucial for high-income earners involved in international business. This includes navigating double taxation treaties, understanding foreign tax credits, and ensuring compliance with Irish and international tax laws. To do this, always consult a tax advisor with expertise in international taxation to develop a more comprehensive strategy.

Ensuring Tax Compliance in Ireland

Whether you’re a non-resident, investor, property owner, retiree, or high-income earner in Ireland, understanding your tax obligations and opportunities for relief is essential. Staying well-informed can help you stay compliant and safeguard your overall financial health.

Luckily, with the right questions guiding your discussions with a tax advisor, you can uncover valuable insights and strategies tailored to your specific circumstances. 

When it comes to Irish tax advice, be sure to:

1. Stay informed and proactive: Tax laws and regulations are constantly evolving. Keeping yourself informed and regularly consulting with your tax advisor ensures you can adapt to and benefit from any changes.

2. Leverage tax reliefs and deductions: Different categories of taxpayers in Ireland have access to different reliefs and deductions. Identifying and optimising these can significantly reduce your tax liability — but should always be done under the guidance of a tax professional.

3. Plan for the future: Whether for investments, retirement, or inheritance, having a solid tax planning strategy in place can safeguard your financial future and ensure you make the most of your wealth. Not all tax consultants are experienced in these areas, so always seek out one who is!

4. Understand international tax implications: For non-residents and those with foreign income or assets, understanding international tax treaties and compliance requirements is crucial to avoid double taxation and ensure efficient tax management. While hiring a tax advisor can provide peace of mind, your tax obligations ultimately fall on your shoulders.

5. Seek expert guidance: Navigating tax complexities can be challenging. Partnering with a knowledgeable tax advisor can not only provide clarity and peace of mind, it can also ensure your tax strategies are constantly optimised to align with your unique financial goals.

Do you need help with the tax planning process or have a specific query about tax returns or policy that you want to clarify?

At Expat Taxes, we offer tax consultancy services to individual and corporate clients with specialised knowledge of international and non-resident tax matters.

Schedule a consultation with our team today and start making the most of your tax situation — confidently and compliantly!

DISCLAIMER: The material in this article is for general information purposes only and does not constitute legal or taxation advice. Legal, financial, investment and taxation advice should be sought before acting or refraining from acting. All information and taxation rules are subject to change without notice. Expats Taxes accept no liability whatsoever for any action taken based on the information in this article or any of the articles in our blog series. Expat Taxes Limited does not provide financial planning, investment, or mortgage advice; this article is provided only for general information. We are not authorised/licensed to provide financial advice and this article should not be considered to constitute advice of this type in any respect.

Written by Stephanie Wickham, CTA, FCA

Known for her ability to simplify even the most complex tax matters, Stephanie has worked extensively across income tax, corporate taxes, capital gains, and inheritance taxes, with a deep understanding of cross-border tax implications and double tax treaties. Having experienced life as an expatriate herself, Stephanie understands the stress that can come with international moves — and how daunting tax compliance can feel. Her philosophy is simple: tax advice should be straightforward, clear, and tailored to each individual.