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.
Raisin, foreign bank account and PRSI topup on ALL interests
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Larry Lain
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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?
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?
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Regardless of where you keep it in any a\c in Ireland you won't get 1.2% interest.
Does this apply if you are filing a form 12 rather than a form 11 ?
No i dont think so, you just declare foreign deposit income on your tax return.
Don't understand why there is not a major campaign to get dirt and other taxes removed from irish deposit accounts when deposit rates are far lower than inflation rates.
Effectively you are losing money to inflation even by getting 2.5% interest on deposit in France, yet revenue are also going to tax that deposit even though you are losing purchasing power to inflation
Effectively you are losing money to inflation even by getting 2.5% interest on deposit in France, yet revenue are also going to tax that deposit even though you are losing purchasing power to inflation
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.
If you are lucky enough to have excess wealth earning interest, the state wants a cut, to offset the lost transaction taxes it would have seen if you spent/invested it elsewhere. Revenue want you to put your wealth to use either consuming services (driving demand and growth and ironically inflation), or preparing for your retirement so that you're not a future drain on the state. Anything else will be taxed heavily, unless you are so rich that tax avoidance advice becomes worthwhile.
(I am also a saver and have Raisin interest in my tax return).
(I am also a saver and have Raisin interest in my tax return).
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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agilesnake
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Could you clarify what's the tax treatment for non-domiciled individual?