Am I Domiciled in Ireland? Understand your Domicile Status 

Domiciled in Ireland

Domicile plays a crucial role in determining your tax liabilities, inheritance rights, and legal status in a country. For those residing in Ireland or considering moving there, understanding your domicile status is of utmost importance. Whether you're an Irish citizen or a foreign national, below we outline some essential pointers to help you determine whether you are domiciled in Ireland.

Definition of Domicile

Let's clarify what domicile means. Domicile refers to the country that you consider your permanent home, the place where you have the most substantial connections, and intend to return to if you are living abroad. Domicile can be different from your nationality or residence status.

Domicile vs. Residence

It is crucial to differentiate between domicile and residence. Residence refers to the place where you live for a significant period, but it may not necessarily reflect your permanent home. You can have multiple residences, but you can only have one domicile at any given time. Determining your domicile status in Ireland requires an understanding of your intentions and ties to the country.

Types of Domicile

In Ireland, there are two types of domicile:

1. Domicile of Origin: This is typically acquired at birth and is usually the domicile of your father if your parents were married or the domicile of your mother if they were unmarried at the time of your birth.
2. Domicile of Choice: You can acquire a domicile of choice by establishing a clear intention to make Ireland your permanent home, severing significant ties with your previous domicile, and residing in Ireland indefinitely.

Domicile and Tax Implications

Your domicile status in Ireland has significant tax implications. If you are domiciled in Ireland, you are subject to Irish inheritance tax (also known as Capital Acquisitions Tax) on your worldwide assets. However, if you are not domiciled in Ireland, you will only be subject to this tax on your Irish assets. Understanding your domicile status is crucial in managing your tax planning effectively.

 

Our tax experts are there to help you with your tax obligations. 

How to Establish Domicile of Choice

If you are a foreign national seeking to establish domicile in Ireland, certain factors can demonstrate your intention to make Ireland your permanent home:

1. Length of stay in Ireland and frequency of visits abroad.
2. Buying or renting a property in Ireland.
3. Joining local clubs or organizations.
4. Registering to vote in Ireland.
5. Holding an Irish bank account.
6. Indicating Ireland as your permanent address on legal documents.

Remember, it is essential to show a clear intention to reside in Ireland indefinitely.

How long can you domicile in Ireland before this changes?

In contrast to the UK, Ireland does not have any 'deemed domicile' rules. This means that individuals can continue to utilize the remittance basis even if they have been residing in Ireland for multiple years, as long as they do not acquire an Irish domicile of choice, of course.

Our team of tax specialists are here to assist you with tax planning and advisory services. Get in touch with us today for expert guidance.

We hosted a Webinar on 7th May 2020 on the impact of COVID-19 on Tax Residency, including the Irish non-domicile tax regime.

 

Conclusion

Determining your domicile status can be a complicated process, especially if you have ties to multiple countries. It is highly recommended to seek professional advice from a tax advisor who specializes in domicile matters. They will carefully assess your unique situation, provide guidance on the legal aspects, and help you make well-informed decisions.

Understanding your domicile status is of utmost importance for individuals residing or considering a move to Ireland. It has a significant impact on various aspects of your life, including taxation and inheritance matters. It is important to keep in mind that your domicile can potentially change over time based on your intentions and connections to a specific country.

If you are uncertain about your domicile status, please don't hesitate to contact us by clicking on the link below.