Becoming non-ROI resident + understand + pros + cons

Hattrick

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I am trying to understand what being non-ROI(republic of Ireland) resident would mean for me? I have struggled to find any useful information online in relation to this,but I am in the process of getting professional advice. In the mean time I would gretly appreciate any advice on here.

My Situation:
I have a whole host of questions that I would like answered before declaring my self non-ROI resident. I basically left Ireland in 2008(left in Feb) and have only been back once for about 20days in 2011.

How does one become a non-ROI resident?
Fill out a form declaring as such and notify the relevant investment people if you want it applied to your investments.

Some Questions:
  • As far as i know, as a non-ROI resident I do not have to pay tax on some investments. But i am not sure if this is just deferring the tax to a later date,to another country that I reside in, or something else.
  • What happens if i ever come back to ireland to live or for a holiday?
  • I also have a pension in ireland, my own private one, how would this be affected?
  • I also have another samll investment, in a fund with newireland, and am not sure how this would be affected?
  • I am not sure if I qualify for an irish state penison, but how would being non-ROI resident affect this?
  • If i have bank accounts still in ireland how would these be affected?

Assuming one qualifies to be non-ROI resident, what are the pro and cons?


Pros:
Do not have to pay tax on irish based investment income?

Cons:

Deferes the tax to later or other country?
 
The issue can be complex, I am not an expert by any means but having shifted several time in my career it is different at different times and different rules apply to different countries. From what you state above you are effectively already non resident. If you have a property in Ireland that might complicate issues but realistically you should be probably now be tax resident in another jurisdiction. If that country has a double taxation agreement with Ireland then this is taken into account in your declaration to your new resident country. One thing certain no matter where you are located (baring a few locations) a declaration of income will probably result in tax.

There is a lot of advice on the revenue but I for one would also be interested in any other experience or advice people can offer.
 
Mostly you will pay tax on your Irish investments (Ireland, being source-state) but can either claim a deduction from/exemption from/credit from your now residence-state, depending on tax-treaty/local legislation.
 
Sorry I seem to have forgotten to mention this is in particular relation to a LifeAssurance fund (formerly a quinn life product) I had invested in and it was since taxed @41% in Feb on it's 8th year anniversary.

The advice I have gotten so far to my main question, but i am not overly convinced:
Q: Am I deferring the tax to somewhere else?
A: No I am not. I should have declared my non-residence already to the payer. And I get a refund from the person who deducted the tax.

And there is no cons, which I am completed surprised by. But they are the experts...
 
I'm not sure you are eligible for exemption/will be able to get a refund. Have a read of the sections on non-residents in the document below (it's Irish Life but the same rules should apply). If Feb 2015 was the 8th anniversary, you started the investment in Feb 2007. From the document:
"Revenue rules state that if the plan was effected before May 2006 the client does not have to be a non-resident at the time the contract was effected to claim the exemption but must be a non-resident at the time of the claim / encashment for the exemption to apply. But if the contract was effected after May 2006 the client HAD TO BE non-resident at the time the plan was effected AS WELL AS at the time of the claim / encashment for the exemption from Exit Tax to apply." So because you started the plan after May 2006, you would need to have been non-resident in Feb 2007 (when you started the investment) to be eligible for exemption from the exit tax.

http://www.bline.ie/uploadedFiles/bline/Protection/Protection_Library/exit_tax.pdf
 
thank you for that orka. based on what you say "you would need to have been non-resident in Feb 2007 (when you started the investment) to be eligible for exemption from the exit tax." then its obvious I am not eligible if i was not a non-resident in Feb 2007. However this May 2006 date that is referred to I cannot see any reference to it other than your informative link. where did you find that?

There is no mention of it here, in the JoeLife.pdf from here (well definitely not as clear as it is in your reference)
[broken link removed]
under "[broken link removed]" after searching for "life assurance" in the search.

from pg15
10.2.2 Transitional arrangements
Finance Act 2006 amendments provide that an assurance company without a declaration of non-residence from a policyholder does not have to deduct exit tax in respect of the ending of an 8-year period for policies taken out before
1 May 2006, if it has reasonable grounds to assume that the policyholder is not resident in the State. However, if a declaration of non-residence is not available at the time of a subsequent chargeable event, the exit tax in respect of the earlier event also become payable.
So basically I have to check if I was non-resident in Feb 2007, which I don't think I was, but even if I was I am not sure it will make a difference.

A bit annoyed that if I had of started this fund 1 year earlier then I might be able to become exempt.
 
If you look further up that page 15 that you reference, it seems pretty clear (my emphasis).

"10.2.1 When is a declaration to be completed?
This declaration may be completed at either the point of sale or the point of claim for policies taken out before the end of April 2006. For policies commenced on or after 1 May 2006 the declaration must be completed at the time of the inception of the policy.
"

From 1 May 2006, if you are not non-resident at the time of inception, then you can't do the declaration - and there is no scope to do it at any other time.

I found the Irish Life document with a search for 'Ireland life assurance exit tax' - 3rd item after two revenue.ie links.
 
Many thanks orka, you are right of course, but it is just the annoyance in my head that is not willing to see it.

The annoyance in my head speaking-
I could still explore if I was non-resident in 2007 when I took out the fund and if I was, then I could let irish life know of this. To be non-resident in 2007 I would of had to have been in Ireland for less than 280 days in 2006 and 2007, as I understand it from this -
http://www.revenue.ie/en/personal/circumstances/moving/tax-residence.html. I don't think I was. As I understand it I think I became non-resident in 2009 as I would have spent less than 280 days in Ireland in 2008 and 2009. I left in Feb 08.

Anyhow moving forward with my situation. Am i better to encash the policy completely pay all the tax, and then reinvest them same funds back into a new policy, but this time declare myself non resident? This way going forward I won't have to pay any tax on any future gains in this new non-resident policy.

Alternatively I could just keep the policy as is and then keep paying tax on any future gains? Seems like a no brainer to me, that I should go with the new non-resident policy. Thoughts.
 
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