Globe-Trotting Sportsman Or Entertainer: Ireland

Ireland is no tax haven, at least not for individuals, but it does have relatively low tax rates compared with some other European countries, and it offers exemption from tax for income from foreign investments for people who are resident but not domiciled in Ireland or the UK. For wealthy non-Irish and non-British (ie non-domiciled) individuals who need or want to live in a cultural capital, Dublin may therefore be the city of choice.

Foreign investment income is exempt from tax for such individuals as long as the income is not remitted to the UK or to Ireland. Therefore they can safely make offshore investments knowing that the income will be reinvested without deduction - the ideal way of turning income into capital without taxation.

American citizens, and nationals of the very few other countries that tax world-wide income on the basis of citizenship, won't be able to take advantage of this possibility, but for all other nationals, it is available. Due to the intertwined nature of the UK and Irish tax systems, it will also not work for British citizens.

The best type of offshore investment may depend on future residential plans. Many countries tax world-wide income based on residence, and if a return to such a home jurisdiction is planned then investments should probably be made through trusts or other tax-distancing vehicles. If return is planned to a home tax regime which fixes only on domestic source income (the case for many or most offshore jurisdictions), then direct investment is safer.

www.lowtax.net contains details of the corporate and individual tax regimes for 35 offshore jurisdictions.

NB: The suggestions given above do not constitute investment advice. They are intended only to assist individuals in finding appropriate professional advice, which is essnetial for anyone planning offshore investment.