Remote working and cheap international travel mean that today, many consider themselves to be ‘digital nomads’. These digital nomads may not spend sufficient time in any particular location to become taxable there.
Services Provided
Benefits of Working With Us
- Understanding Residency Rules: Assistance in determining tax residency status under Irish law, considering the digital nomad’s travel patterns.
- Double Tax Treaties: Review of applicable double tax treaties between Ireland and their home country or other countries they work from.
- PAYE exclusion order advice – for employers with employees who are relocating outside Ireland.
- Registration with Revenue: Assistance with registering with the Irish Revenue Commissioners.
- Filing Tax Returns: Preparation and filing of Irish income tax returns.
- PAYE System: Guidance on the Pay-As-You-Earn (PAYE) system if they receive salaried income from an Irish employer.
- Social Security Contributions: Guidance on Irish social security contributions and any applicable agreements with their home country.
- Personalized Tax Planning: Ongoing personalized tax planning and advice.
- Expertise in Expat Taxes: Specialised knowledge in handling tax issues for expats.
- Personalised Advice: Tailored tax strategies to optimise your financial situation.
- Comprehensive Support: From filing returns to planning future tax obligations.
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How It Works
Common Challenges Addressed
- Initial Consultation: Discuss your specific needs and circumstances.
- Assessment: Evaluate your tax status and obligations.
- Strategy Development: Create a tailored tax plan.
- Implementation: Assist with filing and compliance.
- Ongoing Support: Provide continuous advice and updates on tax laws.
- Unclear on tracking residency, how it applies and the implications of retaining ordinary residency status
- Unclear on when to deregister for Irish tax
- Unclear regarding ability to maintain voluntary contributions
Frequently Asked Questions
Am I liable for Irish tax if I don’t pay tax elsewhere as an Irish citizen?
Yes, you may be liable for Irish tax even if you do not pay tax elsewhere but the analysis turns on your residency/income sources rather than your citizenship.
Here are the key considerations:
Residency Status: Your tax liability in Ireland primarily depends on your residency status, not your citizenship. Irish tax residency is determined by the number of days you spend in Ireland within a tax year:
– Resident: If you spend 183 days or more in Ireland in a tax year, or 280 days over two consecutive tax years (with a minimum of 30 days in each year), you are considered tax resident.
– Ordinarily Resident: If you have been resident in Ireland for three consecutive tax years, you become ordinarily resident from the start of the fourth year. You remain ordinarily resident until you have been non-resident for three consecutive tax years.
Tax Obligations as a Resident:
Worldwide Income: If you are resident or ordinarily resident in Ireland, you are liable to pay Irish tax on your worldwide income & gains, irrespective of where it is earned.
Non-Resident: If you are non-resident, you are only taxed on your Irish-sourced income and gains from Irish assets (called’ specified assets’).
Non-Payment of Tax Elsewhere: If you are not paying tax in any other country, you are still liable for Irish tax on your worldwide income if you meet the residency criteria.
Double Taxation Agreements (DTAs): If you do pay tax in another country, DTAs between Ireland and other countries can help avoid double taxation. You may be able to claim credits for taxes paid abroad against your Irish tax liability.
Non-Domiciled Status: If you are non-domiciled but resident in Ireland, you may only be taxed on foreign income and gains that are remitted to Ireland.
Am I required to advise Revenue when I leave Ireland?
Yes, you are required to advise Revenue when you leave Ireland, especially if it impacts your tax residency status.
Here’s what you need to do:
Form 12 or Form 11:
Form 12: If you are a PAYE taxpayer with no other significant income, complete a Form 12/myaccount year end statement to inform Revenue of your departure.
Form 11: If you are self-employed or have other significant income, file a Form 11, indicating your non-residency status and your new country of residence.
Change of Address: Update your address with Revenue to ensure you receive any correspondence. You can do this online via the Revenue Online Service (ROS) or by submitting a change of address form.
Tax Return obligations in year of departure:
Final Tax Return: Depending on the time of year you leave, you may need to file a final tax return to report your income up to the date of departure.
Preliminary Tax: Ensure any preliminary tax payments are up-to-date for the year you are leaving.
Split Year Treatment: Consider whether a split year treatment election is required.
Social Security Contributions: Notify the Department of Social Protection about your departure to manage your social security contributions correctly.
Residency Certificate: If applicable, obtain a certificate of residence from your new country of residence to support your non-resident status in Ireland.
Implications of Non-Notification:
Continued Liability: Without proper notification, Revenue might still consider you tax resident, leading to continued tax obligations on worldwide income.
