Tax Residency and Domicile
Tax Residency & Domicile: Key Insights for New & Returning Irish Residents
Understanding Your Irish Tax Exposure Before Making a Move
In this conversation, Warren & Partners’ private client and global mobility team outline the key tax considerations for individuals relocating to Ireland. The discussion explores how residency is determined by day-count, while domicile is a more complex legal concept tied to a person’s permanent home. The implications for income and capital gains tax differ significantly depending on a person’s residency and domicile status. The team also covers pre-arrival planning opportunities, including asset disposals, pension structuring, offshore investments, and claiming principal private residence relief. Clients returning from the US, Singapore, or elsewhere may face complex cross-border issues, particularly around pensions and investment funds. A clear takeaway: early advice is essential to avoid costly tax consequences and ensure a smooth transition to Irish tax residency.
Key topics include:
- Irish tax residency rules and thresholds
- Legal concept of domicile and its impact on taxation
- Worldwide income and gains vs. remittance basis
- Pre-arrival planning for foreign-domiciled individuals
- Offshore funds and investment pitfalls
- Tax treatment of foreign pensions and lump sums
- Principal private residence relief for returning residents
- Case studies illustrating timing and structuring benefits
Highlights
Explore the key points from this conversation through a selection of highlight snippets below. These brief clips distil the essential messages, offering quick and valuable insights at a glance.
1. Trends in the area of tax residency and domicile
2. Meaning of tax residency and domicile
3. How your tax residency and domicile affects how you are taxed in Ireland
4. Pre-arrival tax planning
5. Tax treatment of investment portfolios
6. Tax treatment of pensions for non domiciled clients
7. Key take aways for individuals planning to move to Ireland
