Not domiciled - where do I pay taxes?

S

Sedgex

Registered User
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Hi folks,

I'm considering taking professional advice on my situation, but wanted to ask here first - I've done the relevant searches both here and on Revenue, but I am confused.

I have been a resident in Ireland for over 10 years but am domiciled in France, where I intend to return.

My understanding of the tax remittance basis for Irish residents who are not domiciled is that they pay taxes in Ireland only on income remitted into Ireland.

My questions:
  • If I don't need to pay tax in Ireland due to the Tax remittance basis, where do I pay taxes?
  • Do i need to pay any Tax at all?
  • If in France, do I pay taxes only on the foreign income?
The source of income is capital gains from shares based in the USA.

Thanks for any advice you guys can offer.

Best regards,
 
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What are your sources of income?

PAYE: taxable in Ireland.
Irish self employed: taxable in Ireland.
Irish rental income: taxable in Ireland.
French rental income: taxable in France, not taxed in Ireland unless remitted.
 
You are liable for CGT in Ireland if you are "resident or ordinarily resident" (1). It doesn't matter where the shares are. You are resident if you spend more than half the year in Ireland. (2).
 
To be clear.
Non-domiciled individuals pay income tax and capital gains tax only on income remitted to the State.
So non-domiciled individuals holding non domiciled assets would not have to pay any tax in Ireland irrespective of residence or ordinary residence.

However, there are a few traps to watch out for so it is always worth getting professional advice.

Marc Westlake CFP®, TEP, APFS, Grad Dip,QFA
CHARTERED & CERTIFIED FINANCIAL PLANNER™ professional
AND REGISTERED TRUST & ESTATE PRACTITIONER



www.globalwealth.ie
 
My reading of the OP's essential question is - if he brings the share sale proceeds directly back to France (from the U.S.), what tax liability, if any, arises in France?
 
No French tax should arise as I understand it. Provided the proceeds are kept outside of Ireland, no Irish tax should arise (assuming there's no share based remuneration aspect here).
 
Broadly so, trying to avoid their wealth tax, how to hold villas etc.

Very few countries tax foreign income and gains based on domicile or citizenship.

France doesn't.
 
Thanks Gordon,

You will appreciate more than most the need to be sure to be sure when it comes to tax!

In the context of this thread - see post 4 for example :rolleyes:
 
elacsaplau said:
Thanks Gordon,

You will appreciate more than most the need to be sure to be sure when it comes to tax!

In the context of this thread - see post 4 for example :rolleyes:
Click to expand...

You did say you were "considering" taking advice perhaps you should get advice specific to your own circumstances from an advisor.
 
Joe_90 said:
You did say you were "considering" taking advice perhaps you should get advice specific to your own circumstances from an advisor.
Click to expand...

Would you like to show me where I said that, Joe?;)

On a serious note, do you concur with Gordon's view?

At a general level, whether one should seek professional advice - following a thread here - is a judgement call based on multiple factors!
 
Gordon Gekko said:
No French tax should arise as I understand it. Provided the proceeds are kept outside of Ireland, no Irish tax should arise (assuming there's no share based remuneration aspect here).
Click to expand...

Just wondering whether Gordon or anyone else can expand on the bit in bold please - still based on the original premise of a non-domiciled Irish tax resident.

Say, the shares in question are held with a US brokerage house and were originally obtained in connection with one's employment many years ago - does this change the advice already provided? [For example, the shares were either (a) obtained via a SAYE scheme or (b) "granted" with the relevant PAYE paid at the time.]
 
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If you're asking about any subsequent CGT, then yes it does.

Say I'm a non-dom working for a multinational plc and I receive shares worth €100k as part of my remuneration. Typically, that'll give rise to income tax etc.

But if I then hold onto the shares via my US brokerage account, they increase in value, and I sell them, I can avoid the CGT by not bringing the proceeds into Ireland.
 
Gordon Gekko said:
But if I then hold onto the shares via my US brokerage account, they increase in value, and I sell them, I can avoid the CGT by not bringing the proceeds into Ireland.
Click to expand...

Yes - that's exactly the scenario I have as well. Thanks very much, Gordon.
 
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I expect the brokerage had you complete a W8BEN form? If so, the country on that will tax you, if you didn't fill one I guess the US will tax you.
 
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