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Capital Gain tax strategy - American Account - Irish resident not domiciled

  • 25-04-2013 10:58pm
    #1
    Jessica99ie
    Registered Users, Registered Users 2 Posts: 9 ✭


    Hi there

    I'm resident in Ireland not domiciled and I have an American account where I'm building a portfolio of stocks but I'm wondering what's the best strategy tax wise.

    I was wondering if I have to pay any capital gain tax in the states on any of the gains I did/will do. And since I'm resident not domiciled I guess I'm not obliged to disclose any of these gain to the Irish Revenue?

    Anyone could suggest a point of reference where I can find information on the best tax strategy to preserve as much the future (hopefully) gains of my portfolio?

    Thank you

    Jessica
    Tagged:


Comments

  • #2
    ResearchWill
    Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    Not sure domicile is an issue for tax purposes but see here http://www.revenue.ie/en/tax/it/residence.html I think ireland has a tax agreement with the USA see here http://www.revenue.ie/en/practitioner/law/tax-treaties.html


  • #3
    Jessica99ie
    Registered Users, Registered Users 2 Posts: 9 ✭Jessica99ie


    ResearchWill wrote: »
    Not sure domicile is an issue for tax purposes

    As far as I know domicile is indeed an issue for tax purposes.

    My understanding is that if you are resident and not domiciled you only have to pay taxes on the income generated on the country of residence (in this case Ireland). All other worldwide income should be paid in the country of domicile? But I figure it's difficult for the country of domicile to know that I have an account in the US? Possibly the US are not the most convenient country to have the account under these circumstances and I should move my account else where? See where this is going?

    At the moment the porfotfolio is very small and I just recently started to invest but I made some good gains already and I think it might be wise to do some planning while it's only a few $$ because I hope in the future to grow to many more $$.


  • #4
    ResearchWill
    Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    Jessica99ie wrote: »
    As far as I know domicile is indeed an issue for tax purposes.

    My understanding is that if you are resident and not domiciled you only have to pay taxes on the income generated on the country of residence (in this case Ireland). All other worldwide income should be paid in the country of domicile? But I figure it's difficult for the country of domicile to know that I have an account in the US? Possibly the US are not the most convenient country to have the account under these circumstances and I should move my account else where? See where this is going?

    At the moment the porfotfolio is very small and I just recently started to invest but I made some good gains already and I think it might be wise to do some planning while it's only a few $$ because I hope in the future to grow to many more $$.


    Domicile is a very complicated area and there are hundreds of cases on it. A person may think they are domiciled in country A when in fact they are not. In any event tax law especially cross border tax law is very complicated, and should require professional advice.


  • #5
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    OP are you an american citizen? If so they will expect you to file tax returns EVERY year - even if you don't live in america.

    Talk to an international tax advisor, which will probably be expensive.


  • #6
    Jessica99ie
    Registered Users, Registered Users 2 Posts: 9 ✭Jessica99ie


    srsly78 wrote: »
    OP are you an american citizen? If so they will expect you to file tax returns EVERY year - even if you don't live in america.

    Talk to an international tax advisor, which will probably be expensive.

    I'm not an American citizen - I'm European citizen (not Irish).


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  • #7
    zpehtsfd
    Registered Users, Registered Users 2 Posts: 627 ✭✭✭zpehtsfd


    Jessica99ie wrote: »
    I'm not an American citizen - I'm European citizen (not Irish).

    I didn't think it was possible to have an American account if you're not a citizen. Do you mean you have a Foreign Investor / Non US resident account with a US brokerage? If Yes then check out the following:

    http://www.investopedia.com/ask/answers/06/nonusresidenttax.asp


  • #8
    bluesteel
    Registered Users, Registered Users 2 Posts: 228 ✭✭bluesteel


    1. Persons chargeable

    Person resident or ordinarily resident
    Any person who is resident or ordinarily resident in the State for a year of assessment is liable to tax on worldwide
    chargeable gains accruing on the disposal of chargeable assets made during that year.

    In the case of an individual who is resident or ordinarily resident but not domiciled in the State, gains realised on
    disposals of assets situated outside the State are liable to tax only to the extent that they are remitted to this country.
    Such gains are not chargeable to tax until so remitted. For disposals prior to 20 November 2008, gains on assets
    situated in the UK are chargeable in full


    http://www.revenue.ie/en/tax/cgt/leaflets/cgt1.pdf

    so if you leave the money offshore you may not have to pay Irish CGT. However you may be liable in the country of your domicile


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