Tax and immigration strategy for investors in Ireland

Tax incentives in Ireland

When deciding to immigrate with the whole family to a new country, tax is one of the top concerns of investors. Destination taxes are sometimes expensive, creating a financial burden for permanent residents. However, when choosing to settle in Ireland, if there is a suitable strategy, investors can still minimize the tax rate without going against the provisions of local laws.

The first is tax planning based on actual residence time. An individual only incurs a tax liability if he resides in Ireland for 183 days or more in a tax year, or has a total residence period of 280 days or more in two consecutive tax years. Meanwhile, the Irish Immigrant Investor Program (IIP) only requires applicants to reside in Ireland for a minimum of 1 day per year to maintain permanent residency.

According to this regulation, if an IIP investor does not reside for more than the above number of days, there will be almost no tax liability. In the event that the investor resides for more than 183 days but does not transfer any external income to Ireland, does not generate income in Ireland, the investor is still eligible for this national income tax exemption.

In addition, another tax advantage for IIP investors is that the interest earned after investing in the project continuously for many years will not be taxed if the investor does not live in Ireland for more than 183 years. day. Currently, the reference interest rate when investing in Bartra’s Nursing Home project (Project development and investment consulting group in Ireland) within 5 years is 20%, equivalent to 4%/year on the loan amount. capital of 1 million euros. This interest will not be taxed if the investor does not reside beyond the above number of days in Ireland.

Another effective tax planning method when immigrating to Ireland is to set up a Trust or participate in Life Insurance. The “Immigrant Trust Fund” will manage assets such as deposits, shares in public and private companies, bonds, real estate and many other investment properties, and help clients generates a foreign investment return (tax free) from the fund’s assets over the long term.

The investor’s children will be exempt from tax when inheriting assets up to a maximum of 310,000 EUR; then the tax rate of 33% will apply. The assets at the fund will be in the name of the trustee, but the primary interest rests with the beneficiaries, including all rights to the assets and interest arising from the fund. In addition, assets transferred into the base trust are also exempt from Inheritance tax.

In addition, the death benefit will be tax-free if the investor owns a Life Insurance Policy or a Life Insurance Fund. Normally, the individual beneficiary will not need to file a tax return on this benefit. The individual beneficiary is free to use or use the pension money to pay any taxes incurred upon inheriting the property.

Choosing a companion immigration investment consulting company

Ireland is an attractive place for immigrants from all over the world. As an EU member state with English as the main language, a world-class education system, transparent and fair government institutions, and attracting foreign investment, Ireland is welcoming more and more people. HNWI investors from abroad come to settle down through the IIP program.

Investment in immigration is an important decision, affecting the future of the whole family. Therefore, investors need to do a thorough research to choose the right consulting company, help plan migration, support throughout the investment and settlement process.

In Vietnam, many companies with a strong business ecosystem and financial potential not only provide settlement services, but also provide legal advice, business development consulting, and financial management services. main, support to find schools for investors’ children, support to settle in the host country… Or more advanced, a one-stop shop form when the business is still in charge of investment, construction and operate projects.

A typical example of this model is Bartra Wealth Advisor, an IIP project developer and full-service Irish immigration consultant with a representative office in Vietnam. Customers do not need to go through intermediaries, helping to reduce time, effort and risk for investors.

Tax strategy planning for IIP investors is a small part of the overall support package that Bartra Wealth Advisors offers to investors. It is a subsidiary of Irish property developer Bartra Group. Thanks to the strong potential of the parent company in Ireland, Bartra Wealth Advisors is currently the unit that implements the full-package Irish investment consulting model. Investors will pour capital into Bartra’s Nursing Home and Social Housing project, which is responsible for operating by Bartra, and will be advised on immigration investment procedures until the capital is paid back according to a closed process. .

The service ecosystem of Bartra Wealth Advisors is capable of following up and supporting investors for 10 years, from the time of application to the time of settlement, settlement, payback, visa extension… With the department Customer care is available in Dublin Ireland, investors are supported quickly when in need. Bartra Wealth Advisors always details the tasks under its responsibility for free support.

For example, on the first entry to apply for a Stamp 4 visa, investors will be supported with declaration registration, airport pick-up, guided city tour, educational consulting, legal advice. management, tax consulting, real estate consulting, insurance services, butler services…

“Bartra will accompany investors from the first steps when arriving in Ireland until they officially settle down and many years after that. This long-term roadmap is guaranteed in writing by the company and considered as a an integral part of the main settlement investment consulting contract”, a Bartra representative shared.

Jenny Dang, chief representative of Bartra Wealth Advisors in Vietnam, affirmed: “Investor support is a clearly stated term in the contract between Bartra Wealth Advisors and them, not an after-sales policy at all. Therefore, we will do it with all the utmost effort and commitment.”

Bartra had 400 approved IIP applications (over 65% of the total market), achieving 100% renewal and ROI. Bartra’s first nursing home project funded through the IIP program, Loughshinny, has returned 1 million EUR with 20% interest for investors in December 2021.

Phong Van