Spare 130K to invest as a non domiciled

[Henning G]

Hello,

I'm 50, lived in Dublin for 23 years and I'm in the following situation

- House owner without mortgage (value of roughly 650€)
- Zero debt
- Non Irish domiciled (Austria) with a house worth about 150K in Austria which I use for holidays
- I'm already funding my private pension with the maximum amount from me and my employer and also maximum AVC (with roughly 500K balance currently)

I have some spare cash (130K) sitting in my current account and would like to invest 110K somewhere because of the inflation and the negative rates.
The investment would be long term 8-10 years as I have no need and no plan for large expenditures in the near future
As a non-domiciled are there any options/advantages in moving the cash outside of Ireland but in the EU and investing the cash in shares, ETF, funds etc, and avoid paying the irish taxes if not remitted ? Many countries in the EU have lower income and CGT taxes than Ireland and at some stage I will move back to Austria anyway and remitt them there probably.

Before moving to Ireland I worked in the US and had a mixed $$ investments in US based ETF and US based shares (about 100K) that more than trebeled from a initial 30K investment 20 years ago and sold them 3 years ago and are sitting in cash. I seeked finacial advise a few years ago when I sold them and was told that the gains from investments in US soil in shares of US based companies attract no taxes in Ireland for non-domiciled persons unless remitted.
I wonder now what are the rules for moving the cash to other countries within the EU and investing from there ? I believe investing in the EU is a different kettle of fish than the US for non-domiciled people.

Thanks
Henning

 

[Marc]

Henning

The key issue here is not to mix up tax deferred and tax free or clean funds.

Your US proceeds, if still offshore, have gains which, if remitted to Ireland are taxable.

If you have Irish tax paid cash and you mix that with your US cash then you have a “mixed” fund

The anti avoidance provisions essentially say that if you try to bring any of that back into Ireland you’ll pay income tax on it.

It depends on your plans but the cleanest thing to do is often pay the Irish tax that’s due and go from there with a single simple tax efficient portfolio.

Alternatively you could have an offshore account which you can’t bring back to Ireland without being penalised.

It’s much more complicated than people realise.

Case Study: Irish Resident and non-domiciled planning - Everlake

Moving to Ireland? What do you need to know about investment planning? Our case study is a real client and vividly illustrates the potential benefits from structured financial planning

globalwealth.ie

 

[Henning G]

Thanks Marc

 

[Horatio]

It depends on your plans but the cleanest thing to do is often pay the Irish tax that’s due and go from there with a single simple tax efficient portfolio.

Case Study: Irish Resident and non-domiciled planning - Everlake

Moving to Ireland? What do you need to know about investment planning? Our case study is a real client and vividly illustrates the potential benefits from structured financial planning

globalwealth.ie

Like you wrote Marc it may be the cleanest thing but not necessarily the most tax efficient. I understand the attraction of simplification but I would be sure to fully understand at what potential actual cost + opportunity cost.

@Henning: https://www.revenue.ie/en/tax-profe...ins-tax-corporation-tax/part-05/05-01-21a.pdf