How will we be taxed after returning to Ireland from the USA?

Una Kilcooley

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We are returning to live in Ireland permanently soon. I will be receiving a government pension from the U.S. My wife will be working in Ireland. I believe I will only pay taxes in the U.S on my income and my wife will pay her taxes in Ireland only. Am I correct in my assumption or is there a lot more to it? We both have duel citizenship.
 
Nope you'll pay tax here, it would be a strange world where residents could avoid tax (live here, pay tax here). I believe the US taxes all her citizens so you will have to pay US taxes as well, though you will get full credit for Irish taxes paid and they will be higher than the US so you'll likely not have any additional liability. You'll just have to file nice and simple US tax returns every year.

Have a look at the guidance:

[broken link removed]
 
Hi and welcome to ask aboutmoney.

My firm specialises in advising US citizens living in Ireland.

Www.globalwealth.ie

I would strongly advise you to open a brokerage account with Schwab international in Orlando FL before you leave the USA as you won't be able to do so once you have moved to Ireland.

Best wishes
 
Nope you'll pay tax here, it would be a strange world where residents could avoid tax (live here, pay tax here). I believe the US taxes all her citizens so you will have to pay US taxes as well, though you will get full credit for Irish taxes paid and they will be higher than the US so you'll likely not have any additional liability. You'll just have to file nice and simple US tax returns every year.

Have a look at the guidance:

Thank you for the reply. I copied the Taxation agreement below from that site. The last paragraph is what leads me to believe differently. Am I interpreting it wrong?

Double Taxation Agreements
Double Taxation Agreements generally make a distinction between pensions payable by governments to former employees and pensions payable by private employers. There are some variations between the agreements and not all agreements make this distinction and they vary in other ways so you would need to check how exactly you are affected.

Most of them provide that pensions for non-governmental employees are taxed in the country of residence. So, if you are living in Ireland and getting an occupational pension from another country, you should generally receive it gross and then pay Irish tax on it.

The opposite is the case for pensions for former Government employees - generally they are taxable only in the country where they are paid. So, if you are a former employee of the US government now living in Ireland, you pay tax on your occupational pension in the USA only. In some cases, this applies to pensions from local authorities or other political sub-divisions - again, the particular agreement needs to be checked.
 
Hi and welcome to ask aboutmoney.

My firm specialises in advising US citizens living in Ireland.

I would strongly advise you to open a brokerage account with Schwab international in Orlando FL before you leave the USA as you won't be able to do so once you have moved to Ireland.

Best wishes

Thanks Marc, I'll look into Global Wealth. What would be the advantages of opening up a brokerage account with Schwab International?
 
1. Many US brokerage firms won't open new accounts for clients living in Ireland. However existing clients are allowed to keep their accounts.

2. US citizens should never ever purchase European investment funds so the right course of action is to invest in US funds for which you need a US brokerage account see 1
 
Prospectus documents typically state the following:

United States of America

None of the Shares have been, nor will be, registered under the United States Securities Act of 1933 as amended (the “1933 Act”) and the Company has not been and will not be registered under the United States Investment Company Act of 1940, as amended. Accordingly the Shares may not be offered or sold, directly or indirectly, in the United States or to any U.S. Person except pursuant to an exemption from, or in a transaction not subject to the requirements of the 1933 Act, as amended, and the United States Investment Company Act of 1940, as amended. The Shares have not been approved by the United States Securities and Exchange Commission, any state securities commission or other U.S. regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of this offering or the accuracy or adequacy of these offering materials. Any representation to the contrary is unlawful.
 
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