Regardless of where you keep it in any a\c in Ireland you won't get 1.2% interest.That's interesting. Would this apply in my situation I wonder.
We're in the process of returning to Ireland from the US, having spent the last 35 years in the US. We just closed on a house in Ireland and we now have a bank account here. We will not be resident in Ireland for tax purposes for another few years but will spend summers here. I still have a small business in the US which I can handle online and need to retain an address there for banking purposes.
I'd like to move approx $500k from US dollar savings to a Euro account to take advantage of the current exchange rate. The cash is currently in a Marcus.com (Goldman Sacks) simple savings account paying 1.2% interest. Is there something like that anywhere in the EU I could use? I've briefly searched online and found Raisin.ie but that only showed a French account and with a 100K limit.
Where do Irish savers keep significant cash they do not want to commit to the market?
Opening a foreign bank account ( inclusive of EU account) requires a form 11 to be filled to declare it, which in turn trigger the PRSI surcharge on top of DIRT on all savings interests including the ones in Ireland? This is what is happening in the online form11 automatic calculation. I think this makes opening foreign accounts unappealing. I’m surprised Revenue did not get on the EU radar for this.
Unearned income and social insurance
Unearned income from rents, investments, dividends and interest on deposits and savings is liable to PRSI at 4% since 1 January 2014. People aged under 16 and over 66 are exempt from PRSI and are not liable for the new charge. (In 2013 people paying modified rate contributions (mainly civil and public servants recruited before April 1995) became liable to PRSI of 4% (paid at Class K) on earned self-employed income and any unearned income (from 1 January 2013) and on self-employed income which comes under PAYE (from 28 June 2013).
Anyone with unearned income of over €5,000 is considered to be a 'chargeable person' and is liable to pay the PRSI charge at 4% on all their unearned income. They pay the charge under Revenue's self-assessment system (Pay and File). The new PRSI charge is paid at Class K and does not entitle the person to any social insurance benefits.
PAYE tax payers who are not considered 'chargeable persons' by Revenue are not liable for the new PRSI charge. A person is not a 'chargeable person' if their income from non-PAYE sources is less than €5,000 and this income is taxed under the PAYE system. (Generally such income is taxed by reducing a person’s tax credits to account for tax payable. However if you have paid Deposit Interest Retention Tax (DIRT) on your non-PAYE income you are not required to pay further income tax on this income.)
No i dont think so, you just declare foreign deposit income on your tax return.I’m a partner, not a PRSI earner. I’m very tempted by the 2.5% rate at Raisin but do I have to lodge a form with the Revenue if I do?
No, income tax is on money you earn. DIRT currently merely augments losses incurred by those whose savings are eaten up by inflation.If you follow that logic then they should abolish income tax too...I don't know of many, other than crazy Freemen types, who believe that.
Could you clarify what's the tax treatment for non-domiciled individual?If you are an Irish tax resident and domiciled individual, you should be subject to Irish tax rules on your worldwide income and gains. This includes foreign income earned abroad, such as interest income earned on deposits held in foreign bank accounts. On this page we explain what the withholding tax is, as well as provide necessary documentation and deadlines for each of the EU countries of our partner banks. We also explain how to obtain a certificate of tax residence.*
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