Tax Exile: Clarification of the Rules? Would this Work?

Hi Guys,

I was reading Tax Magic 2012 though I'm having a bit of difficulty understanding matters relating to living abroad and income tax. It says:

"The simplest way to avoid income tax is to not live in Ireland for more than 140 days (on average) per annum. In this way, you will not be
resident in Ireland for tax purposes and will avoid paying 41% tax, 4% PRSI and up to 10% universal social charge."

At the moment I live in Ireland (though I am abroad for 2+ months of the year) and take a salary from my company paying 50%+ income tax on this.

Let's say I were to move to Montenegro (9% max income tax) and run my business from there (it's internet based so I could do this easily enough). I live there but come back to Ireland a few times per year (for less than the 140 days total over 2 years).

Am I now not subject to Irish Income Tax? Would I just be liable to 9% income tax in Montenegro?

Ireland has a tax treaty with Montenegro as far as I'm aware.

Any advice on this would be much appreciated!

Thanks

Hi

Montenegro is not the most safest place in the world. If you are English speaking it is likely that you may stand out there and attract attention from undesirables.

I would recommend that you consider carefully where you move to and not just on the basis of the rate of tax.

Best regards

capnhand