Returning to Ireland Tax status

S

spaceman

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I am considering returning to Ireland for family purposes after living abroad for twenty years. I understand that I can be classified as either resident or non resident depending on circumstances/intention of staying in Ireland on my return etc. but in any case will be deemed resident and ordinary resident after being in Ireland for three years and similarly if I leave again I will be non resident from the day I leave but will remain ordinary resident for a further three years.
Can anybody advise on the pros and cons and reasons for deciding either way on residence Any advice on things I should or should not do before returning or things I should put in place before returning would be much appreciated as I dont want to find myself thinking "I wish I had know that before I returned"......

looking forward to your responses
 
I found Revenue "Coming to Live in Ireland" document to be very useful [broken link removed]

If you haven't spent an extensive period during the past 10 years absorbing the new vibes you may be startled by the changes which are massive. In fact I can't think of one aspect of life in Ireland as a child (I've lived in the UK since 1973 but until a couple of years ago all my leave-time was spent with family in Dublin - Christmas, New Year Easter, St. Patricks day, birthdays etc.)

If you cannot manage spending a month immersing yourself prior to deciding to relocate (and which of us could afford that luxury!) you can get a good idea of the changes by subscribing to a couple of the national newspapers online (The Irish Times provides a daily digest).
 
This could have a very open-ended answer

You should start by trying to set out what assets and liabilities you possess

Then depending on what country you are coming from try to compare how tax is charged there to how it is in Ireland

e.g. sale of current PPR (if you have one)
How it is taxed where you are if sold before moving or after moving
How it would be treated in Ireland if sold after moving?
e.g. depending on whether a double taxation treaty exists between here and there

In relation to residence it usually is a matter of fact whether you are resident or not e.g. greater than 183 days in 1 year, .....
But as you said you could consider electing for residency prior to becoming resident as a matter of being here

Avoiding residency in an effort to reduce a tax bil can be an expensive excercise and should really involve large amounts of tax savings before even being considered

stuart@buyingtolet.ie
 
One thing I'd look into when returning to Ireland, is saving the VRT when you bring your car into Ireland.
Apparantly, say if your family had 3 cars abroad (and have owned them for 6 mths before returning) you can bring all 3 in without having to pay any VRT. This could be a substantial saving.
 
Thanks to everybody for the replies to date. Stuart, could you give me any more information regarding in which way(s) not being resident could prove to be expensive?


Regards
 
I am in a similar position, due to return home after 6 years abroad, but Revenue have informed me that my car must be at least 12 months old if I am to avoid VRT??Is there any Reveue Guide for the 6 monthsd requirement???
 
has this to say on the matter (italics are mine):
Exemptions from paying Vehicle Registration Tax

There are different reliefs and exemptions from VRT. Even if you are not required to pay VRT, you must still register your vehicle when you come to Ireland (see Rules below). The following groups are exempt from paying VRT:

  • Visitors to Ireland who have owned their vehicles abroad for more than 6 months and who will be resident here temporarily
  • People who have owned their vehicles abroad for more than 6 months and who are moving permanently to Ireland
  • People posted to Ireland as part of the diplomatic corps
NOTE: If you are moving to Ireland and are among those exempt from paying VRT you cannot sell your vehicle for more than 12 months after the vehicle is registered.

If you are required to pay VRT, then you can sell your vehicle here in Ireland when you wish, once it has been registered. Further information is available from your local VRO.
Click to expand...
 
spaceman said:
Stuart, could you give me any more information regarding in which way(s) not being resident could prove to be expensive?
Regards
Click to expand...

I was refering to trying to avoid becoming resident, to avoid being taxed in Ireland, as being expensive,

It can be very expensive excerice (travelling, keeping two homes, etc) to purposely aviod becoming resident and on that basis

Aslo, it seems to be a general perception of the general public (the media at least), at the moment, that people who become non-resident by design are common criminals or even masss murderers. But that is another arguement

stuart@buyingtolet.ie
 
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