Taxation on investments in a foreign country

pasquale83

Hi, I've heard that if the income from investments in a foreign country are not transferred in Ireland that income is tax exempt (or better pays taxes only in the foreign country where the money are invested). Do you know anything about that?

Thanks!

Alan Shore

Residence, ordinary residence and domicile.

http://www.revenue.ie/en/tax/it/who-pays

pasquale83

Thanks for the link, but it is still not clear to me. I am an Irish resident (not ordinary yet). I do not understand If I have to pay taxes on shares/securities investments performed abroad using a foreign bank.

CIARAN_BOYLE

pasquale83 wrote: »

Thanks for the link, but it is still not clear to me. I am an Irish resident (not ordinary yet). I do not understand If I have to pay taxes on shares/securities investments performed abroad using a foreign bank.

Are you Irish domiciled or not?

Mr. Incognito

If you are irish residence and domiciled you pay tax in ireland on your worldwide income.

pasquale83

Mr. Incognito wrote: »

If you are irish residence and domiciled you pay tax in ireland on your worldwide income.

That is the standard. But there are international treaty with some countries and I am not sure if they override the "standard" legislation.

pasquale83

CIARAN_BOYLE wrote: »

Are you Irish domiciled or not?

Yes I am

pasquale83

Mr. Incognito wrote: »

If you are irish residence and domiciled you pay tax in ireland on your worldwide income.

That is the standard. But there are international treaties with some countries and I am not sure if they override the "standard" legislation.

Alan Shore

pasquale83 wrote: »

That is the standard. But there are international treaty with some countries and I am not sure if they override the "standard" legislation.

If you are resident and domiciled then you are taxed on your worldwide income.

A tax treaty will provide that you don't pay tax twice on the income so depending on the country you may get foreign tax as a credit or deduction.

Marcusm

If you are Irish resident but not ordianrily resident, on what basis do you claim to be Irish domiciled? Are you a recently returned Irish emigrant or have you misunderstood the concept of domicile? Consider the point carefully as the answer decides which side of the line (worldwide or Irish source taxation) applies to you!

pasquale83

Marcusm wrote: »

If you are Irish resident but not ordianrily resident, on what basis do you claim to be Irish domiciled? Are you a recently returned Irish emigrant or have you misunderstood the concept of domicile? Consider the point carefully as the answer decides which side of the line (worldwide or Irish source taxation) applies to you!

I live/work in Ireland since 3 years.

pasquale83

Marcusm wrote: »

If you are Irish resident but not ordianrily resident, on what basis do you claim to be Irish domiciled? Are you a recently returned Irish emigrant or have you misunderstood the concept of domicile? Consider the point carefully as the answer decides which side of the line (worldwide or Irish source taxation) applies to you!

I live/work in Ireland since 3 years. Am I domiciled?

Marcusm

pasquale83 wrote: »

I live/work in Ireland since 3 years.

As I suspected, you don't understand the "domicile" concept. Domicile in an Irish taxation point relates to your natural or permanent home. When you are born, you acquire a "domicile of origin" which is the same as that of your father. Once you are an adult, you can acquire a "domicile of choice" by consciously making a decision to abandon the country of your prior domicile and choosing a new country as your permanent home. Often, consultants would advise people to purchase a burial plot to prove that their change was permanent. If you are in Ireland for a temporary (even if open ended) employment purpose and intend to return to your home country, it is highly unlikely that you have acquired an Irish domicile. It would thus be open to you to avoid Irish taxation on foreign (non Irish, non UK) investment income which was earned and retained abroad.

You would be best advised to get professional advice o ensure that all factors are taken into account.