What are the tax rates in ireland

banking and taxes in Ireland

Banking in Ireland

The major banks in Ireland offer a range of services as well as Internet banking options, which are easy and popular to use.

Opening a bank account

It is easier to open a bank account in Ireland in person than trying to open one before arriving. To open a normal resident account, the account holder must have several pieces of identification and proof of residence in Ireland.

If an expat in Ireland opens a non-resident account they will need a reference, and will have to provide a transaction history from their home bank. It is a good idea to keep a home country account open, but an Irish account is needed to pay bills and receive salary payments.

The account can take several weeks to activate, so expats in Ireland should plan on keeping money elsewhere in the meantime.

ATMs and credit cards

ATMs are widely available in Irish towns and cities, and it’s possible to use a foreign card at most ATMs. Credit cards are widely accepted across the country, although card facilities and ATMs may be limited in more remote areas.

Taxes in Ireland

Tax status in Ireland depends on an expat's residency status. Expats qualify

for tax residency if they are in the country for 183 days or more in a tax year or 280 days over two years.

Irish residents have to pay tax on income derived from both inside and outside Ireland, while non-residents pay tax on their income inside the country.

Everyone in Ireland has to pay a standard rate of 20 percent on their taxable income up to a certain amount, which depends on whether the person is single, married or is a single parent. Everything earned above the cut-off point is taxed at 41 percent.

Taxes in any country are confusing and made more so by expatriation. Due to the different levels of income taxes, expats living in Ireland are often privy to a tax advantage. To find out about this and to avoid paying taxes in Ireland and at home, expats are advised to hire an expat tax planner.

Ireland has tax treaties with most countries, but there are many legal loopholes and idiosyncrasies that are best worked out through by a professional. When an expat registers for tax they receive a PPS number (similar to a US social security number) which qualifies them for social welfare benefits such as healthcare coverage and pensions.

Source: www.expatarrivals.com

Category: Taxes

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