The meeting takes place in the welcoming lobby of an undisclosed hotel just off of O'Connell St in
Dublin, Ireland.
Head Tax Native (“TN”):
Secret Private Client Adviser in Ireland, your mission, should you choose to accept it, is to educate us on the practical tax considerations in Ireland.
This task requires a delicate balance of expertise and discretion.
Be warned, should your real identity be revealed during this covert operation, you will be disavowed by Tax Natives and shunned by your fellow private client advisers.
Do you accept?
Secret Private Client Adviser in Ireland (Secret Adviser):
I accept.
Tax Natives:
[settles into a cozy armchair in the hotel lobby] Let's delve into the tax considerations for private clients in Ireland.
Can you explain how an individual becomes taxable?
Secret Adviser:
[leans forward, tapping a pen thoughtfully] Sure. In Ireland, tax liability hinges on domicile, residence, and ordinary residence.
For instance, if you're in Ireland for 183 days or more in a tax year, you're considered a resident.
Receptionist:
[arguing with a guest] "No, Mr Bono, we didn't want your free album drop on Apple... and we don't want you to do a free concert in the lobby. People are trying to relax.
Tax Natives:
[suppresses a chuckle, then continues] Interesting. What about individual income taxes?
Secret Adviser:
[sips coffee] Irish residents are taxed on worldwide income, with standard rates at 20% and higher rates up to 40%.
There's also the universal social charge and pay-related social insurance.
Now, regarding capital gains...
Tax Natives:
[nods] Yes, how are they taxed?
Secret Adviser:
[adjusts glasses] Capital gains tax is 33% on personal gains above €1,270.
But for non-domiciled residents, only gains remitted into Ireland are taxed.
Tax Natives:
[glancing at notes] And what about lifetime gifts?
Secret Adviser:
Gifts may be subject to capital acquisitions tax with various tax-free thresholds.
For instance, you can receive €335,000 tax-free from a parent.
Receptionist:
[to another guest] "No, we don't offer tours to find the end of the rainbow!"
Tax Natives:
[smiles, then asks] What about taxes after death?
Secret Adviser:
[leans back] Similar to gifts, inheritance comes under capital acquisitions tax, with the same tax-free thresholds.
Tax Natives:
[checking time] Lastly, any other taxes we should know about?
Secret Adviser:
[stands up] Well, there's local property tax, stamp duty, and VAT on various goods and services.
And no wealth tax in Ireland.
Tax Natives:
[extends hand] Thank you for these insights!
Secret Adviser:
[shakes hand] Happy to help. Enjoy your stay in Ireland!
[They part ways, Tax Natives heading towards the bustling hotel exit, amused by the unique interactions of the day.]
Tapping out
If you have any queries about this top secret interview on private client tax in Ireland, or Irish tax matters in general, then
please get in touch