Paying tax in Ireland

JTL1961

Good Morning
I would like to put my savings into a higher paying interest account but have been rejected as I pay tax in Ireland aswell.  Can anyone please advise if any savings accounts would accept me ?

dunstonh

Can you confirm your residency?
What tax is it that you are paying in Ireland?

Banks will normally reject Irish residents for tax purposes but will not normally reject UK residents with overseas income.   The reason is that the UK is not allowed to sell retail financial products to those resident in the EU (oversimplified statement to keep it short).    There is nothing preventing a UK resident for tax purposes from having overseas income other than American in terms of savings accounts.

JTL1961

I am a UK resident and have a couple of houses that I rent out in Ireland.  I applied for SmartSave and Tesco but rejected when said I pay tax in Ireland.

dunstonh

I am a UK resident and have a couple of houses that I rent out in Ireland.  I applied for SmartSave and Tesco but rejected when said I pay tax in Ireland.

Does it actually say what you think it does?

Here is a screen shot from Tesco:



If you say yes then you don't get asked any more.  If you say no, then a few more questions but nothing about overseas income.

Band7

If you live in the UK for more than 183 days in any tax year, your tax residency is almost certainly the UK. AFAIK, you cannot be resident for tax purposes in more than one country, and bilateral Double Taxation Agreements between countries ensure you only pay tax on the same income once. https://www.gov.uk/tax-foreign-income/residence

Tesco, and all the other banks I know of, are asking you about your tax residency, not whether you also pay some tax in other jurisdictions (which everyone who travels abroad does, for instance).

Though I am not tax expert, so if in doubt, you should ask a tax consultant or HMRC.

km1500

Do you fill out an Irish tax return annually ?

JTL1961

Thank you all so much ! yes I do fill out a tax return yearly for ireland.

JTL1961

I was only born in Ireland but have lived here since I was 6 and i'm now 61 !

PRAISETHESUN

I can't comment specifically on Ireland, but you can most definitely be a dual resident for tax purposes - it all depends on the rules surrounding tax residency in the foreign country.

Usually there is a requirement to actually live/work in the country in question to be a tax resident, but not always. However, you can still generate taxable income (eg. rent, savings interest) without actually living in the country. In such cases you might still be require to complete tax returns and pay income tax to the foreign country, but at a "non resident" rate. Any tax paid can then be off-set against your UK taxes under the terms of any double taxation treaties.

From the sounds of it OP has Irish-derived foreign income and pays Irish tax, but should not be considered an Irish tax resident for tax purposes.

Rich2808

The OP is tax resident in the UK - so say so.

Paying tax abroad does not make you tax resident - I have had to pay taxes in Ireland relating to property sales and inheritances and complete tax forms (its hard work dealing with the Irish revenue!). Admittedly one off - but that does not make me an Irish tax resident.

Given thousands cross the border between NI and the Republic daily for work - so live in one juridisction but receive income in another - this is not uncommon and there are tax treaties in place to deal with this.

So I would explain this to Tesco - you are an Irish citizen (and I assume a UK one) but that doesn't make you tax resident in Ireland.

Band7

Having to pay tax in a country doesn't automatically make you a tax resident of that country.

As far as UK and Ireland are concerned, see the double taxation agreement, particularly Article 4.