# Expat Deposits



## marbar (7 Jan 2014)

i have been living outside of ireland for 6 months, but i have funds for a deposit account back in my irish current account.
as far as i am aware, this 6 months mean i am no longer required to pay DIRT. is that correct?
does it make sense to open a deposit account now in ireland (not easy from overseas i'm finding) or will it make more sense to move it elsewhere? (not sure where exactly)

appreciate your help guys


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## Lightning (7 Jan 2014)

What country are you now resident in? 

Is your new home, your main country of residence for tax purposes?


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## marbar (7 Jan 2014)

i'm now resident in UAE. it is my main residence for tax purposes, but i've never expressed this in any documents


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## Lightning (7 Jan 2014)

You are going to struggle to open a non-resident account in Ireland. 

Will any UAE banks open a EUR account for you? 

If you have a sizable deposit, then some of the offshore banks might be worth considering.


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## marbar (7 Jan 2014)

i have a friend in an irish bank that can send me the forms required for a deposit account. my understanding is that i woudl fill this as normal, but then i would not e liable for DIRT because i am not resident. is that the case?

if i open a UAE euro account, would i not lose money on the currency transfer?

what offshore accounts would you recommend? similarly, wouldn't currency exchange effect me?

sorry if these questions sound silly, but ive no experience in this matter


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## Lightning (7 Jan 2014)

marbar said:


> i have a friend in an irish bank that can send me the forms required for a deposit account. my understanding is that i woudl fill this as normal, but then i would not e liable for DIRT because i am not resident. is that the case?



If you are certain that you are not an Irish resident for tax purposes then you are not liable to DIRT. You are therefore liable to any UAE interest taxes. 



marbar said:


> if i open a UAE euro account, would i not lose money on the currency transfer?



What is your 'base currency'? Are you staying the UAE long-term or will the money be coming back to Ireland in the medium term?


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## marbar (7 Jan 2014)

'What is your 'base currency'? Are you staying the UAE long-term or will the money be coming back to Ireland in the medium term?'

currency here is AED. it will be my base for 2 to 5 years. does this count as medium term? am i liable to tax for any savings that i want to move home?


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## Lightning (7 Jan 2014)

Well, the question really is, when you ultimately spend the money will you be spending it in EUR or AED? 

If you are saving to buy something in AED, then keep the savings in AED. Hence, no FX risk. 

If you are saving to buy something in EUR, then keep the savings in EUR. Hence, no FX risk. 

Don't think any tax will be applied to moving the EUR from a UAE bank to an Irish bank EUR bank account.


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## marbar (8 Jan 2014)

ciaran, thank you very much for your input. it is much appreciated.

1 additional question for you, the difference between Gross interest and AER on a deposit account is Tax/DIRT. therefore, if i am not resident but my deposit is in Ireland, i will receive the Gross rate on my account.

is this correct?


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## Lightning (8 Jan 2014)

marbar said:


> ciaran, thank you very much for your input. it is much appreciated.
> 
> 1 additional question for you, the difference between Gross interest and AER on a deposit account is Tax/DIRT. therefore, if i am not resident but my deposit is in Ireland, i will receive the Gross rate on my account.
> 
> is this correct?



Step 1. You need to advise your Irish bank that you are non-resident. This carries the risk that the Irish bank will tell you to close your account as they might not allow non-residents to hold accounts. 

Step 2. You need to complete a DIRT exception form and send this to the bank. 

Step 3. You will then be paid at the AER rate on an annual basis. 

Step 4. You need to declare your interest in UAE to the local tax authorities and pay local tax on interest on deposits.


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## alwaysonit (16 Jul 2014)

Did you ever follow up on this Marbar?
I've been trying to change my accounts to DIRT exempt for a couple of years now and I've still not managed it, probably because I'm not a resident of anywhere.
I spent a lot of time looking into oversea deposits which you might find interesting http://www.askaboutmoney.com/showthread.php?t=187709 but lots of people think ETFs are a safer bet in the long run


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## Bronte (17 Jul 2014)

alwaysonit said:


> , probably because I'm not a resident of anywhere


 
You'd want to be VERY sure of that.  I find it impossible to believe,


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## Lightning (17 Jul 2014)

Bronte said:


> You'd want to be VERY sure of that.  I find it impossible to believe,



If you live on a ship, in the open oceans, you are often classified having no residency at all!


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