Moving to a new country is an exciting time in your life. You will experience a new culture, work environment and way of living, a time of broader horizons.
You will also face some challenges in how you manage your financial life. Without proper planning, some of these can turn into expensive mistakes. Planning your personal finances for a move to Ireland needs to start now, before you move.
Let's look at some of the key things you need to consider...
Irish High-Street Banks are not competitive with newer entrants to the market like Revolut or N26.
Whilst Revolut has the edge in terms of functionality, they are moving their operations to Dublin and therefore in order to benefit from Remittance basis planning, we recommend opening an account with German Bank N26.
It's very easy to avoid the uncompetitive rates offered by High Street Banks when moving substantial amounts from one currency to another.
We recommend using a specialist currency broker like Currencies Direct
Our analysis of regular savings plans suggests that Irish Unit Linked Savings plans are poor value when compared to regular savings funded by gifts from non-resident relatives.
Consider setting up an offshore regular savings plan funded by gifts from non-resident relatives as a particular tax efficient form of saving.Find out more
Income tax in Ireland is at a rate of up to 55% (tax year 2020) on certain forms of earned income.
We met with one Foreign National who was taking up an employment contract with a large US multinational to work in Dublin. On reflection he would have been much better off working out of their Paris office.
Take tax advice before signing contracts of employment.
Estate Planning involves the orderly and tax efficient transfer of assets/wealth between individuals, and most commonly to the next generation, and covers both gifts and inheritances.
The core elements of estate planning are legal effectiveness, tax efficiency and practicality.
For many individuals, estate planning can be very straightforward.
In other cases, complexities can arise, including divorce, second marriages, non-marital relationships and children.
Although Capital Acquisitions Tax is based on residency, non-domiciled individuals only become liable to CAT after 5 consecutive years resident in Ireland.
Careful management of time spent in the State can therefore act to mitigate the impact of Irish CAT.