Returning to Ireland: UK & Australia Investments

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finmcg

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36 year old returning to Ireland in the next month having worked abroad in the UK & Australia for the last 15 years. The plan is to live in Ireland for the next 3 - 5 years and then return to Australia (where I will likely stay indefinitely as I'm now an Australian citizen).

I have money with Vanguard in both UK & Australia (Vanguard Diversified Growth Index ETFs). In the UK, it is under the tax-efficient ISA wrapper invested directly with Vanguard. In Australia, it isn't within a tax-efficient wrapper and invested via an online broker. I don't plan to take anything out of these accounts while living in Ireland. Question: do I need to pay taxes in Ireland? And if so, what type? (hopefully not this 8 year deemed disposal malarkey!).

Also looking into how I continue to build wealth efficiently over the next 3 - 5 years (e.g. can I continue to invest in Australia or should I investment in assets in Ireland). Any suggestions or advice would be appreciated?
 
You will need to pay tax on income in Ireland but not on any ETFs, so long as you don't sell any while you are staying. I would continue to invest in Australian assets if you are looking to return there.

I would recommend trying to avoid becoming 'ordinarily resident' in Ireland if you can, although you may not be able to avoid it as it kicks in after 3 consecutive years of tax residency. The problem is if you are OR and return to Aus and sell stocks then you may be subject to Irish taxation until you cease to be OR (a further 3 years).
 
Hi,

I am in a similar situation and I am looking for some advice/information.

I lived in Australia for 5 years and returned home to Ireland in December 2017 and I do not intend on returning to Australia in the future. I obtained my Australian citizenship while living in Australia. I am a non-tax resident in Australia. I am engaged to an Irish person, who was never in Australia. I do not have existing shares/ETFs or an existing shares account in Australia. I have cash savings in an Australian bank current account, which I would like to invest in ETFs in Australia to avoid Deemed Disposal. I am not overly concerned about the currency risk between EUR/AUD in the future. On the Passive Investing Australia website there is a recommendation to invest via Interactive Brokers as they accept non-Australian tax residents. A few months back I set up an Interactive Brokers account in Ireland, which is registered to my Irish address and which I use to buy shares through Euro.

A few queries I have:
  1. Is it possible to use my existing Irish Interactive Brokers account to invest in ETFs in Australia? Or would I need to set up another Interactive Brokers account in AUD to allow me to invest through AUD? Any info on this would be appreciated.
  2. Say after 30 years I cash in the Australian ETFs what would be the tax implications in both Australia and Ireland?
  3. As a non-Australian tax resident, would it be more beneficial to buy franked or unfranked ETFs? Or does it matter?
  4. Can someone explain both the ETF CGT tax and dividend tax for non-Australian tax residents in simple terms?
  5. Annual tax implications on ETFs as a non-Australian tax resident?
  6. Does anyone have a recommendation of a broker in Australia who caters for Irish non-Australian tax residents? I have tried a few and they ran away as they said it is too difficult to deal with from a tax perspective!
Any other information/advice would be greatly appreciated. Hopefully the answers/comments on the above will help other people on this forum

Thanks in advance
 
finmcg said:
36 year old returning to Ireland in the next month having worked abroad in the UK & Australia for the last 15 years. The plan is to live in Ireland for the next 3 - 5 years and then return to Australia (where I will likely stay indefinitely as I'm now an Australian citizen).

I have money with Vanguard in both UK & Australia (Vanguard Diversified Growth Index ETFs). In the UK, it is under the tax-efficient ISA wrapper invested directly with Vanguard. In Australia, it isn't within a tax-efficient wrapper and invested via an online broker. I don't plan to take anything out of these accounts while living in Ireland. Question: do I need to pay taxes in Ireland? And if so, what type? (hopefully not this 8 year deemed disposal malarkey!).

Also looking into how I continue to build wealth efficiently over the next 3 - 5 years (e.g. can I continue to invest in Australia or should I investment in assets in Ireland). Any suggestions or advice would be appreciated?
Click to expand...
Your investments in your UK ISA are most likely UCITS/OEICs and therefore will be subject to the 8 year deemed disposal from the date of purchase.

So if you purchased these say 6 years ago and then move to Ireland in 2 years you will be liable to 41% tax on the gain since you bought them.
Better to sell the ISAS before you move to Ireland perhaps?
 
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