IB account for non-domiciled

Dear all,

Is income (CG, interest) made in account with Interactive Brokers (Irish registered company) in Germany (that's where I transfer money) considered foreign income (capital gains) for non-domiciled but Irish tax resident for the year?

Thanks.

From the information that I have been able to gather, Tax remittance rules for non-domiciled apply only to assets like shares, income property, rent, etc. but not to bank deposits, ETFs or gains from Foreign currency. If you buy 100€ of BMW shares with IB in Germany and sell them at 200€ there is no CG tax payable in Ireland on the 100€ gain unless remitted to Ireland, nor on the dividends. If you leave 100€ in the IB deposit account and get 100€ interest , your 100€ gained are subject to DIRT (and possibly PRSI) in Ireland (not CG) and the remittance basis does't apply for that.

Is there more information on it? Why would interest is subject to DIRT, IB take out WHT on it and from what I understand it is counted with the rest of other income in ROS Form 11?

YubiVan said:

in Germany (that's where I transfer money)

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If you are referring to the fact that IBKR uses a JPMorgan account in Germany to receive your transfers, I don't think that has any relevance.

NuriaF said:

the IB deposit account... subject to DIRT

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The IBKR interest on uninvested funds is not a deposit account. I believe it should be declared as income on which tax at the standard rate has already been withheld.

Yubivan

As a non domiciled, I follow a strategy which I believe is pretty safe: I don't touch anything that is Irish. Eg. It may not matter since IB is just a broker, but I wouldn't use it as it's regulated in Ireland. I use DeGiro that has no presence in Ireland. Then, I make sure to buy only baskets of shares that have nothing to do with Ireland. Shares of companies that are incorporated in the eurozone, Italy, France, Spain, Germany etc. etc. and make sure to avoid buying shares of companies that are incorporated in Ireland (like for example Accenture). When I want to use the profits, dividends or capital gains, I transfer them to my N26 card, again bank registered in Germany, and use it abroad only, never in Ireland just to avoid mixing things (I use it mainly on holidays, Spain, Italy, Portugal etc. to pay for hotels, restaurants, car rentals, shopping in the supermarkets etc. etc.).. I never use my N26 card in Ireland. I almost never use the N26 card online (eg. to buy Ryanair or AerLingus tickets) since they are irish companies: for that I use my AIB card. I never withdraw cash abroad using my N26 card, (in case someone could argue that I withdraw cash abroad and bring it to Ireland).... then

a) I avoid buying ETFs, since the remittance doesn't apply and the all taxation around them is a true mess.
b) I declare and pay DIRT on the interest received (not on the DeGiro account since they pay no interests) but a real deposit account from another
EU bank since the remittance base doesn't apply to DIRT.