Buying Assets While abroad and non-resident Tax Q.

[hankbell]

A little back-story: So my wife is currently non-resident in Ireland and has been working in Dubai for a number of years, she will be coming to Ireland later this year. I was thinking of taking advantage of the fact she is living in a tax free state and getting her to potentially buy some shares or some other kind of asset while she is there. So she will have bought the assets while living and working in Dubai.

My question is this: Will any profits made on the assets she would own be liable to capital gains or any other form of tax after she moves here? If she converts the assets back to money in her Duabi account in a few years for example, when she transfers to and Irish account will there be any tax due?

thanks a million, hope someone can clarify.

 

[Setanta12]

Hmmm ... where to start? CGT is a tax on gains - gains arise on disposal. There is a tax for when assets are acquired - CAT, Capital Acquisitions Tax. And for a variety of reasons CAT is not relevant here.

CGT is calculated on proceeds, sales-price. The status of the seller is taken into account. Your wife will be Irish tax-resident then and taxable in full on worldwide gains. There may be some reliefs for certain assets e.g. bonds of certain types, or a PPR while she is away but I will leave that to others to expand upon.

 

[hankbell]

Thanks a mill for the reply. So kind of what I suspected, there really isn't any advantage to her buying any assets abroad using her Dubai account if she's going to end up living here before she sells them?