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Transfering money abroad - tax question?

  • 28-11-2010 7:16pm
    #1
    water-man
    Registered Users, Registered Users 2 Posts: 293 ✭✭


    Hello,

    Looking for tax advice about sending money abroad to a saving account. We are getting nervous about our savings here in Ireland. We have moved our savings to non-Irish owned banks – namely NIB, Rabo and UB. But I think I'd still like to send some to a bank totally based abroad.

    Our details:
    I'm Irish, living and working here in Ireland.
    OH who is from an EU nation but living and working here in Ireland.

    OH has a bank account in their home country which they used to send money to before we got married. Shortly after we got married I was made redundant (very lucky to be working again) and OH stopped sending money to their home country.

    Now we are thinking about sending some of our savings to this bank account. My query is this money would be coming primarily from bank accounts in my name only.

    Would we need to declare this money here for any tax reasons? I don't want to have a tax bill in the future. How do I go about declaring this?

    Thanks for the advice,

    WM


Comments

  • #2
    Toblerone1978
    Registered Users, Registered Users 2 Posts: 684 ✭✭✭Toblerone1978


    I would say this is an impossible question to answer, as there is more one tax jurisdiction in "abroad"!!


  • #3
    Northern Girl
    Closed Accounts Posts: 10 ✭Northern Girl


    Hi there

    THere are a few things that you need to think about. I assume that the monies being transferred abroad are from after-tax income.

    1. If you are opening a foreign bank account, this needs to be reported on an annual tax return (date account opened, address of bank, amount used to open account etc etc).

    2. The only tax issue that you need to consider in Ireland is that any interest earned on this bank account will be liable to tax in Ireland. If the account is in an EU country, then the interest is taxed the same as if it were a bank account in Ireland (i.e. 25% DIRT.. current rates). If your OH is not Irish domiciled (i.e. she doesnt consider Ireland her permanent "home"), then any interest earned in her name is subject to the "remittance basis" i.e. she is only liable to tax if she brings the funds into Ireland.... This is a compex area (i.e. what constitutes a "remttances", so be mindful that its not just bringing cash into Ireland, it could also be paying a credit card bill etc from that account).

    3. You would also need to consider (if you are not married) that you may be considered to be gifting the funds to your OH if they are available for her use.

    THis is all from an Irish perspective. There may be foreign implications also i.e. you may need to check if they have a non-resident declaration that you need to complete so that the bank does not withhold our equivalent of DIRT on your interest.

    Hope this helps.


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