I want to bring in funds from the U.S. to buy a home in Ireland, what are the tax implications for doing this?

Question:

What are the tax implications of bringing funds from the U.S. to Ireland to buy property?

Answer:

If you’ve recently moved to Ireland and are planning to transfer funds from the U.S. for a property deposit, understanding the tax implications is crucial. Here's a breakdown:

Pre-Residency Savings: Any income earned abroad before the year you become an Irish tax resident is considered savings. These funds are not subject to Irish taxes, even if you transfer them into Ireland.

Income Earned Post-Residency: Non-employment income earned in the same year you become an Irish tax resident will be taxed if you bring those funds into Ireland (referred to as "remittance basis").

Verification of Funds: When transferring funds, you’ll need to provide evidence of their origin. Your solicitor is required to confirm the source of funds in compliance with anti-money laundering regulations.

What You Should Do:

Plan Ahead: Before transferring funds, outline your intentions and consult with your solicitor or a tax advisor.

Documentation: Be prepared to provide documentation proving the source of the funds, such as bank statements or income records.

Tax Advice: For complex cases, seek guidance from a tax professional to ensure compliance with Irish tax laws and avoid unexpected liabilities.

By understanding these tax rules and working with your solicitor, you can safely and smoothly transfer funds to Ireland for your property purchase.

This information is meant to be helpful but you should always confirm details about your property purchase with your solicitor. Contact Beam at info@letsbeam.ie for more information.