The recent announcement that the UK is to severely restricts its Non-Dom regime, has led many UK based Non-Doms to start the search for alternative destinations.
Countries high on the list may include Italy, Spain, Malta, Singapore and Ireland.
Ireland may attract many of the UK based Non-Doms due to its proximity and it has a similar tax regime for Non-Doms.
The UK has historically been an attractive location for Non-Doms to relocate to for many reasons, the tax regime was favourable but also the UK is a world heavy weight in many economic and financial activities, particularly the financial sector based around the City of London. As a result, many global wealthy individuals relocated to the UK and benefitted from its Non-Dom tax regime.
Ireland has a Non-Dom tax regime similar to the one that operated in the UK. In fact the Irish Non-Dom regime is arguably superior to that of the UK. Unlike the UK, Ireland does not have a time limit and therefore it does not impose a “deemed-domicile” rule after a certain number of years. There is also no annual charge for Non-Doms and no application or formal qualification process.
Ireland has in recent decades also been a popular location for entrepreneurs and high net-worth individuals to relocate to. The booming tech and pharma sectors in Ireland meant that many foreign executives have located to Ireland and the Irish Non-Dom regime has benefitted these individuals along with other tax reliefs such as SARP (Special Assignee Relief Programme).
It is relatively straight forward to become a Non-Dom in Ireland and avail of the remittance basis of taxation. If an individual plans in advance it may also be possible to bring “capital” funds into Ireland tax free.
Like other jurisdictions, Ireland is keeping its Non-Dom regime under review, however, in its current format it is bound to be a consideration for many UK based individuals who may be affected by its recent restriction on its Non-Dom regime.
If you have any queries in respect to becoming a Non-Dom in Ireland please contact our Tax Team.
John Conway
Partner
Ormsby & Rhodes
Dublin, Ireland