Deposit interest

confused12

Registered User
Messages
41
Hey

If I have a deposit/savings account in Ireland can I earn interest from money sent to this account if I'm not actually living in Ireland? Eg living abroad and sending a certain portion of my salary to this account
 
Yes and not only that you are not subject to deposit interest tax if you are non resident.
 
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Really? That's amazing! I'd imagine it's a common enough practice then?

Is there any charge for transferring the money?
 
Non-residents are subject to tax in the country that they are resident in.

You need to declare the Irish deposit interest to the tax authorities in your country of domiciliation.
 
Non-residents are subject to tax in the country that they are resident in.

You need to declare the Irish deposit interest to the tax authorities in your country of domiciliation.

I see. So when do you become a non-resident? As in, does somebody working in a foreign country for 6 months who is transferring money home qualify as a non-resident?
 
Non-residents are subject to tax in the country that they are resident in.

You need to declare the Irish deposit interest to the tax authorities in your country of domiciliation.

So as a non resident I would obviously be taxed by the country I'm residing in but I don't understand how this applies to money I send home (after tax) and wish to put in a deposit account
 
So as a non resident I would obviously be taxed by the country I'm residing in but I don't understand how this applies to money I send home (after tax) and wish to put in a deposit account

From a tax point of view "home" is where you are domiciled. If you are domiciled in, say, the UK, then your Irish bank account is a foreign bank account from which you are earning interest. You are entitled to pay no DIRT in Ireland because you are not domiciled there. By the same token, you have to declare and pay tax on this where you are domiciled, i.e. the UK. The fact that the money on deposit is "after tax" is no different from any deposit.
 

Thank you for the explanation. So I must declare any money that I transfer back to Ireland? Would the tax I would be paying be similar to the DIRT tax I'm escaping?
 
Perhaps you know better than we do in which country you are, and what is that country's tax deduction for interest earned abroad.
 
Perhaps you know better than we do in which country you are, and what is that country's tax deduction for interest earned abroad.

This is purely hypothetical as I haven't gone anywhere yet. But yes, I agree it would be best to look at the relevant country's laws
 
Back in the day when I worked in a Building Society we allowed Irish Residents, living in Ireland, with an Irish address their interest DIRT free if they were sending the INTEREST abroad to a non resident. The interest was leaving the country so it was allowed DIRT free.