If you had a remote job/online business in your 20s, would you move abroad?

Paddyg96 · 23-12-2021 3:02pm #1

I'm 25 making a 6 figure salary with an online business and I invest a lot. I like Ireland, but nothing is tying me here

Over the last year I've realized how harsh the tax structure is here on high earners, which is fine when you're a banker in KPMG for 30 years but when you're an entrepreneur with a potential window of opportunity of 5-10 years, it's hard seeing 50% of your earning potential gone + Deemed disposal & the 3rd highest CGT in the world

Anyone considered moving abroad for tax purposes? Any suggestions of where to look into?

MakersMark · 23-12-2021 3:20pm

Dome fantastic tax opportunities to be had in places like Portugal.

Have a brother in law there who returns to Ireland for a few months of the year.

MakersMark · 23-12-2021 3:23pm

Non-Habitual Residency: Tax Advantages for New Residents

Portugal’s ‘non-habitual residents’ (NHR) scheme gives special tax benefits to new residents for their first ten years in the country. It also offers a lower income tax rate of 20% if you’re employed in Portugal in a ‘high value’ activity and allows you to receive some foreign income tax-free.

garrettod · 23-12-2021 3:23pm

Hi,

Ireland is far from perfect, but it's set up in such a way that it provides for the young and the old (as best it can), with those in the middle financing most of it. Each generation takes their turn.

We benefit directly or indirectly, through things like free education, medical care, social welfare / state pension, general quality of life etc.

Assuming you grew up in Ireland, you've already enjoyed some of the benefits, so why not pay back into the system now?

Given what you've shared with us elsewhere, you might even be able to create a couple of jobs, so maybe help make the country a better place, or help improve a friend or family members circumstance.

Odds are, you'll benefit once again from the system, when you are older, unless you are leaving for ever more.

Get some decent tax advice, and you won't feel so frustrated by the tax payments.

Paddyg96 · 23-12-2021 3:40pm

https://www.boards.ie/discussion/comment/118366293#Comment_118366293

I’ve looked into it heavily but it didn’t seem to be that good to me, 20% on income for freelancers but social securities take it up to about 40%.

If you’re a business owner you can pay very little on foreign sourced dividends but from what I understand it’s hard to keep your business in Ireland while living in Portugal, which nullifies that advantage unless you’re a wealthy retired executive.

Paddyg96 · 23-12-2021 3:44pm

https://www.boards.ie/discussion/comment/118366315#Comment_118366315

This is good advice, I’ve already created two jobs here and it was a great feeling.

I do have a bit of a chip on my shoulder as I’ve had family members who were not helped in the way they should, putting a lot of financial stress on my parents. I’ve also had my share of health problems this last year and have been annoyed with the health system.

however it would be best not to become another grumpy bitter old man one day haha. I’ll think about what you said. Thank you.

I’ll also stop spamming posts, just have no one to get good advice from and I love to hear general sentiment, I find a lot of tax professionals/accountants don’t give you that.

JimmyVik · 23-12-2021 3:45pm

Yes, go somewhere sunny.

My brother recently retired to Portugal in his 50s.

I'll be moving there in the next few years too.

And the tax there is infinitely better than Ireland.

23-12-2021 3:47pm

I think lifestyle choice is really the most important thing. I've seen some of your posts, you don't seem to know where you want your life to be.

You have a successful business, well done, fair play to you, but maybe you need to think about what you want for your life?

massdebater · 23-12-2021 4:35pm

Tax had no bearing on me leaving Ireland initially, but it is one of the main stumbling blocks holding me back from returning on a more permanent basis now. I'm in Canada and there are lots of incentives for young people to invest early, as well as favourable tax laws when it comes to capital gains tax, ETFs etc. Not as good as Portugal but pretty good I think!

Paddyg96 · 23-12-2021 4:48pm

https://www.boards.ie/discussion/comment/118366426#Comment_118366426

Yea to be fair that’s my biggest problem, I’ve got so much choices that I don’t know what road to take haha

garrettod · 23-12-2021 10:51pm

https://www.boards.ie/discussion/comment/118366650#Comment_118366650

You know that there's no big rush, right?

It sounds like you've got a very good business going, which is super for a 25-yr old. You could continue as you have done, for another year or two (subject to making a couple of small "tweeks", perhaps).

Do you have an accountant to help you with your business accounts, and if so, have you been able to speak with them about any of the issues you've raised here?

I'm not looking for a job, and I'm not an accountant, investment manager, or tax consultant, btw - although I do have a lot of dealings with people in those, and other professions, so might be able to give you a few suggestions, if you are interrested in speaking to one or two people :-)

If you had a remote job/online business in your 20s, would you move abroad?

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