Non Dom profit on the sale of shares

[Gigi Buffon]

Hello,

I'm non Irish domiciled, tax resident in Ireland >10 years, but domiciled in Italy. I transferred some cash sitting in my AIB account gaining very little to DeGiro last year and made a substantial Capital Gain (~20k) on the sale of a number of Siemens shares which I disposed of recently (~ 20k gain).
So as I understand: I have no 33% - 1270€ tax liability on the 20k in Ireland until I remit the gains to Ireland, which it will never happen since I want to use the cash to refurbish my house in Italy next year. So because I'm tax resident in Ireland I have no CGT to pay in Germany and because I'm non-domiciled in Ireland I have no liability in Ireland since I won't remit the money here. Do I have to pay the tax in Germany or in Italy? How does the "double non taxation work" ? Is it really tax free? I checked the DTA Ireland-Germany Italy-Ireland but there is nothing that highlights how a non-domiciled tax resident in Ireland is treated concerning the taxation of shares.

Thanks

 

[AAAContributor]

I have no 33% - 1270€ tax liability on the 20k in Ireland until I remit the gains to Ireland

Small point - on the off chance that you have to remit a gain to Ireland in the future, or you make an Irish source gain with a tax liability, the annual exemption of €1,270 is deducted from the taxable gain (~€20k) first, and then tax @ 33% calculated on €18,730. The annual exemption does not come off the 33% amount.

This may not have been how you meant it, but it was how I read it.

 

[Farma1]

Yeah you are correct as long as you don't bring any of the money back to ireland - you can't spend the profit in Italy and bring the original capital that you invested in DeGiro back to Ireland.

 

[Gigi Buffon]

Thanks AAA for the note and Farma for the comment. Yes I'm not planning to move back the original investment to Ireland either but remit everything to Italy: origianl capital and gains. Anyway I think I will take some paid professional advice on this from a firm that specializes in internationl taxation. I know that no tax is attracted in Ireland since I won't remit anything back here, but I don't want to face a large bill from the German Revenue a few years down the road telling me that because no Irish tax was due thanks to my non dom status I should have paid the German revenue.....