Ireland citizenship by investment PLAN YOUR TAX FIRST!

Hi I’m Tom Bradford and this livestream are going to talk about tax residency in Island if you’re coming in under one of the visa routes a to Island that I talked about on this channel so I’ve talked about several first one is the start-up visa now you need 75,000 euros to establish your start-up in Ireland but there’s also the critical skills route where if you’re paid either thirty two thousand euros through your Irish company or sixty four thousand euros through your Irish company at depending on your skill set then you can qualify for a stamp for visa and be on a pathway for residency after five years or if you have sufficient disposable funds you can come in under the immigrant investor program where you simply invest 1 million euros into a real estate investment trust for example and secure a stamp for visa immediately either way it’s going to be a 5 year track to Irish citizenship it’s a these are residency programs rather than citizenship by investment programs you’re not in any way purchasing citizenship the attitude of the Irish authorities is you should not be in a better position from an immigration perspective coming in onto one of these routes then you know a medical worker coming in for a work visa for example so the important thing you need to take into account and really an opportunity for managing your wealth is the favourite very favourable tax regime in Ireland for resident but non domiciled individuals so if you’re a tax resident in Ireland then you can opt out of tax residency in another jurisdiction and there are many double taxation agreements between Ireland and other jurisdictions which may include yours where the effect of which is that if your tax resident tonight and then you won’t be deemed to be tax resident in your jurisdiction and what that can mean is if you’re not domiciled in in Ireland then you can potentially avoid tax perfectly lawfully on your income and capital gains in your home country or worldwide and also not have to pay them within Ireland you would only be only have to paid Irish tax on the tax that is remitted to or brought into Ireland or earned are directly in Ireland but if you have passive income for example worldwide or from your home country then potentially through tax structuring and your residency in Ireland you can have a very tax efficient structure where if the vast majority of your wealth is effectively secured tax-free now let’s just go through the stages so in broad terms a non-domiciled Irish tax resident individuals only subject to tax on income from Irish sources this means that if you come in under the IIP I’ve used as an example that’s the immigrant investor program but it also applies to start-up visa or work visa programs and you manage your residents appropriately then your foreign income and gains are only taxable if they’re brought in to Ireland so if you become tax resident in Ireland then you can benefit from the many double taxation agreements it can often have the effect that as a tax resident at 9 and you don’t have to pay tax in your home country depending on a particular treaty and because you’re not domiciled in Ireland then you don’t pay tax on that front income all your capital gains either so if you have a stamp for visa then you can get this either immediately through the immigrant investor program or through coming in under work visa after two years and then you need to only need to be in Ireland for once per year and one of the really interesting points is that if you want to establish a new Co in Ireland and you fall within the critical skills regime which as I say either means let’s say you’re a tech professional and you have and you can be paid through your new company 32,000 euros then you can qualify for that visa you ought you need an Irish director you can’t simply come in and establish a company because there’s a so-called 50/50 rule in Ireland where for every foreign non Irish person who comes in under work visa those you also got to be an Irish worker engaged so that can fit in nicely because if you engage an Irish director of your company then a certain administrative functions that need to be conductors as well then you can qualify for the critical skills permit and if you don’t fall within the critical skills list then as long as you are paid sixty four thousand euros at least sixty four thousand euros and through your new entity then you can come in on that basis and if you have to do that then you actually don’t need to go through the immigrant investor program or the start-up visa program necessarily you’d still need to have a business fund a business case a viable commercial case for coming into Ireland but typically I think what this is best for is if you already have a business and you’re looking to set up a base in Ireland then you can come under this route which is familiar to many of the tech giant’s for example to come into Ireland engage people locally set up a new company there and come in in that way so these tax considerations apply across the board whatever visa route your you’re considering you should look at this so to be a tax resident in Ireland you only need to spend more than 183 days in Ireland in the tax year or spend over 280 days in Ireland over two consecutive years and for the immigrant investor program for example you only need to come in once every year but for Irish citizenship I’m going to be doing a video or on this as there’s been some new case law the effect of which is that you need to be in if you’re applying for citizenship after five years then you need to show that you’ve been in the country all of the year for each of those years say for up to up to sixty days so if you the form citizenship form application form requires you to state absences in each of the five years which are over sixty days and if they’re over 60 days then they’ve got to be justified but if they’re under 60 days in each year then they don’t need to be don’t need to be justified so I’m going to be doing a video especially on that but if you’re simply coming on to secure in a residency under IIP and you yourself are not looking to secure a citizenship but maybe your family is looking secure sits in jail then for you you’ll be able to renew that residency indefinitely and it may be that you know your family can spend longer in in Ireland and pass your family and children but for you personally if you want more freedom to perhaps take care of your business abroad then that that should not be a problem you as long as you structure it correctly you I can be classified as a non-domiciled person from the perspective of Irish tax law and either non-resident or as I say ideally the ideal position tax resident or ideal position for many tax resident but non domicile so you can show the perspective of other jurisdictions that your tax resident in in Ireland and therefore taxable there but because you’re not domiciled there you benefit from this generous regime of course which is designed like in the UK to attract foreign investors and people looking to protect their wealth internationally there’s still going to be tax liabilities but there and fairly minimal and allow you to therefore to maximize perhaps other investments in Ireland perhaps into your new business there or in employing people locally so there’s no statutory definition of domicile under Irish law and it’s a concept which like in UK law has been developed through the courts essentially every individual was born with the domicile of origin and it’s possible for a person to lose that domicile of origin and acquire a domicile of choice here you’d be looking to have a defensible case for showing that you’re domiciled in another jurisdiction because the tax benefits here arise from you being tax resident in Ireland but non domiciled and so you’d be looking to identify another jurisdiction where you have an arguable case for domicile as for how you justify that to the tax authorities well at the point that you have to actually declare tax in Ireland and that may not come very quickly but at the point you have to declare that then you would need to have a you know statement of affairs which justifies your position on domicile and explains it so if you’re called upon to justify that but it’s essentially a box that you take in your return and there’s no formal application processes it’s a self-declaration but one which needs to be made on a defensible basis of course then the next slide I’ve got is structuring your first before entry to Ireland basically what you’ll need to do is because tax is payable on money that you as a resident non domicile person it’s paid on money that you bring in to Ireland what you’ll need to do with is structure your affair so as to segregate remittances so that your tax is only paid on the money remitted not on the funds from what from which they originate and that typically involves a segregation of finances so that taxable gains and income from before your residency are clearly delineated so I hope tell I think Ireland is a great jurisdiction a great potential option for citizenship or second citizenship or for residency the non-domicile regime is at least as good there as it is for the UK in many ways it’s simple and in the UK there are various charges which you have to pay to retain non domiciled status which are not applicable in Ireland it is in the EU and Ireland has a committed member of the EU which has other benefits so if you have Irish citizenship then you’d have a free movement within the European Union that’s attractive for many Dublin is a great city of course many other great places in in Ireland but and there are real estate opportunities notwithstanding the corona crisis and so in investment is not short of investment opportunities I think in terms of Education for your children you know the lot lots of very famous excellent educational institutions and schools but also at a university level and great connections with the UK and the really nice thing about islanders is part of the common travel area and therefore once your citizen of islands you’re actually treated as what you’re not treated as a quote foreigner or alien and use the language of the of the legislation from the perspective of UK legislation so that means that once you have Irish citizenship its equivalent of having British citizenship under the EU settlement scheme you can it’s entirely optional to apply for settled status see can simply travel on your own you’re Irish possible within the common travel area without the need ready to take any further action and the constitutional or treaty arrangements between the UK and Ireland have been confirmed notwithstanding the exit from the European Union so lots of great advantages and I think from a visa perspective it’s probably it’s probably more flexible islands at the moment is more flexible in terms of what it offers in the UK so many of my clients come in under what’s been into the UK under what’s called the sole representative visa or the start-up visa or innovative easier or the investor visa but at the investor visa for the UK requires that you invest two million euros that’s right for the UK requires the universe 2 million pounds and the investor visa for Ireland requires to invest 1 million euros now for the UK you have to invest in UK shares and at the moment particularly during the corona crisis some people are reluctant to invest in UK shares but under the island residential investment program you inverse 1 million euros in generally in real estate which is actually not permitted under the UK regime so interesting differences I think there are advantages to both for some you know the UK is a must for yeah thought for various reasons London is still going to be the financial centre of the of the region for the foreseeable future and it’s yeah it’s a choice which is informed by the immigration routes might be of course delighted to help you with advising you on your visa options and I work with of course the tax and Irish experts to coordinate solutions for my clients I’ve got some other good content coming up about this and as I say specifically on the next video on Irish citizenship and the new case law on that I hope this was useful I’m just going to check whether there are any questions because this is the live stream let me just have a look yeah so Shafiq thank you very much for your question you asked is it possible to get settled in Ireland with business registration so Shafiq the answer to your question is there are specific routes which involve registration of business registration but business registration by itself does not provide a route to residency let me just quickly switch back so through it is possible to register if for example you have an existing business you know setting up a subsidiary of it then that can be registered in Ireland and if you qualify for the critical skills permit then subject to employing an Irish director then you could qualify for a critical skills work permit or if you don’t and you’re not in one of the prohibited roles under the work visa regime and you’re paid sixty four thousand euros then you can you can again qualify for the critical skills permit and that’s a two-year pathway to a stamp for visa which then takes you through to year five and a year five you can apply for citizenship now all of the part of that process involves registering a business but as I say it takes more than the actual registration of the business to give rise to any right of to qualify under any of the relevant visa routes the investor route of course doesn’t involve business registration the start-up route does involve business registration but you need a qualifying idea that’s approved by a committee and I say that in terms of the start-up program versus the Irish one versus the UK start-up program versus the Canada one of all of them I would say that the UK start-up program yields the most predictable results in that the criteria much more transparent in in Ireland it’s subject to the decision of a committee which does not yield our predictable results if you look at the kinds of businesses that have been that are endorsed so it may be that it’s establishing a subsidiary in Ireland it if you qualify for the critical skills permit that that might be the better approach if Island is a must so those are those are my observations and thank you very much for the for the questions I don’t think there are any questions for now on them any more on the live stream but if you do have any questions and you can touch base with me on the contact details below either what’s at me or you can for legal advice and assistance you can also email me on those details feel free to subscribe and click the notification belt I hope that was helpful and I will say goodbye for now

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