I have dual citizenship, Ireland and Australia.
I am looking to have a (semi) passive income through rental returns on property investment with the property being located in Ireland.
Are there ways I can limit the taxes I pay on this income?
Australia has more beneficial income tax rates than Ireland that I have found simply by looking at pay calculators online. I know being a resident in Australia would often provide better deductions when it comes to properties which I would guess would decrease my overall tax payable as opposed to being resident in Ireland. As a simple calculation through the tax calculators, not taking into account any tax write-offs from the property, I would earn approx $10,000 more being resident in Australia after tax than I would in Ireland so this isn’t to be sniffed at.
The problem is I’m looking for a change from Australia, to somewhere in Europe.
As far as I am aware, by owning property in Ireland there would be with-holding tax of 20% on all rental income derived from the property investments by foreign residents and then I would be taxed on top of that in the country of residence which would bring me up to total tax owed from the income I earn.
So am I correct in saying that I would have to move to a country with a DTA with Ireland or else I would be liable to be taxed twice?
Is it possible to move to a country whereby the income tax rate could be less than 20% and I would pay no more tax at all apart from the 20% with holding tax in Ireland?
Is there any way not to pay this with-holding tax in Ireland?
What countries would be suitable in Europe from a tax minimisation perspective?
I know this is a little bit of complicated situation but there seems to be some cluey people on here regarding these issues that may be able to shine some more light on this. Hopefully I am explaining myself clearly. Thanks