Foreign-domiciled individuals are eligible for the remittance basis of taxation in Ireland, which means that foreign income and gains are not taxed in Ireland unless they are remitted here. This offers scope to foreign-domiciled individuals to ensure they arrange their affairs efficiently to maximise this basis of taxation.
Services Provided
Benefits of Working With Us
- Understanding Residency Rules: Assistance in determining tax residency status under Irish law.
- Split Year Treatment: Advice on split year treatment if they move partway through the year.
- Double Tax Treaties: Review of applicable double tax treaties between Ireland and their home country.
- 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 for salaried income.
- Remittance Basis: Advice on the remittance basis of taxation for non-domiciled individuals.
- Foreign Income Reporting: Assistance with reporting foreign income and understanding the tax implications.
- Capital Gains Tax: Guidance on capital gains tax liabilities in Ireland and any reliefs available.
- Inheritance and Gift Tax: Guidance on inheritance tax (CAT) and gift tax implications in Ireland.
- Estate Planning: Assistance with estate planning to minimize tax liabilities.
- 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.
Customer Story
A UK couple residing in Ireland contacted us, faced with uncertainties regarding their domicile status and tax implications. With significant UK property investments, family ties in the UK, and a desire to plan for the future transfer of their wealth to their children, they sought guidance on their tax obligations and optimal strategies. Discover how we helped them.
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.
- Assistance with understanding the remittance basis of tax
- Determining the tax implications of transferring money/funds to Ireland
- Unsure as to how/when/where to pay taxes
- Concerns about complying in Ireland and abroad with tax obligations
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Frequently Asked Questions
Do I become Irish domiciled if I apply for citizenship?
No, applying for Irish citizenship does not automatically make you Irish domiciled.
Domicile is a distinct concept from citizenship and residency. Here are the key points:
Domicile: Domicile refers to the country that a person treats as their permanent home and has a substantial connection with. It is not the same as residency or citizenship and is determined by your intentions and circumstances.
Domicile of Origin: You are born with a domicile of origin, typically the domicile of your father at the time of your birth.
Domicile of Choice: To change your domicile, you must demonstrate a clear intention to permanently reside in another country and sever ties with your domicile of origin.
Citizenship and Domicile: Applying for Irish citizenship means you become an Irish citizen but does not affect your domicile status. You would need to take concrete steps and show a firm intention to make Ireland your permanent home to acquire an Irish domicile of choice.
Do I need to apply for the remittance basis of tax?
No, you do not need to apply for the remittance basis of tax in Ireland formally.
However, you must meet certain conditions to qualify for it.
Here’s how it works:
Eligibility: As a non-domiciled person in Ireland, you are eligible to be taxed on the remittance basis for your foreign income and gains. This means you are only taxed on income and gains brought into (remitted to/used/enjoyed) Ireland.
Automatic Application: The remittance basis applies automatically if you qualify as a non-domiciled resident. You do not need to submit a separate application.
Tax Return: When filing your annual tax return, you must declare any foreign income or gains remitted to Ireland. Income and gains remaining abroad and not remitted are not subject to Irish tax.
Record Keeping: It is crucial to maintain detailed records of your foreign income, gains, and remittances to ensure accurate reporting and compliance with Irish tax laws.
What issues do I need to be aware of as a non-dom in Ireland?
As a non-domiciled person in Ireland, several issues and considerations can affect your tax situation.
Here are the key points to be aware of:
Residency Rules: Understanding and correctly determining your residency status is crucial. Residency affects whether you are taxed on your worldwide income or only on Irish-sourced income and remittances.
Remittance Basis:
Foreign Income and Gains: Only income and gains remitted to Ireland are taxed. Ensure you understand what constitutes a remittance and plan your finances accordingly.
Mixed Funds: Be cautious about mixing foreign income and gains with other funds, as this can complicate tax reporting and result in unanticipated tax liabilities.
Double Taxation: To avoid double taxation, Ireland has double taxation agreements (DTAs) with many countries. These agreements can provide relief, but it is essential to understand how they apply to your situation and claim any available credits or exemptions.
Foreign Tax Credits: If you pay tax on your foreign income in another country, you may be able to claim a credit against your Irish tax liability for that income. Proper documentation is required to support these claims.
Inheritance Tax (Capital Acquisitions Tax – CAT): Non-doms may qualify for exemption from CAT in certain situations.
Investment and Savings Accounts:
Offshore Accounts: Reporting requirements for newly opened offshore accounts can be stringent. Ensure you comply with disclosure obligations.
Tax-Efficient Investments: Seek advice on structuring investments in a tax-efficient manner while considering Irish tax rules.
Compliance and Reporting:
Annual Tax Returns: Ensure you file accurate and timely tax returns, including all required information on foreign income, gains, and remittances.
Revenue Audits: Be prepared for potential audits by the Revenue Commissioners. Keeping detailed records and documentation is crucial.
Professional Advice: Given the complexity of tax rules for non-doms, it is advisable to seek professional tax advice to ensure compliance, optimize your tax position, and address any specific issues related to your personal circumstances.
