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can I have a legal offshore account?

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  • 20-02-2009 12:04am
    #1
    axel rose
    Registered Users Posts: 1,050 ✭✭✭


    Is it possible to open a bank account in a foreign country legally? Assume here that I provide a permanent address in this country. How do you go about declaring it?


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    #2
    GerardKeating
    Registered Users Posts: 7,650 ✭✭✭GerardKeating


    axel rose wrote: »
    Is it possible to open a bank account in a foreign country legally? Assume here that I provide a permanent address in this country. How do you go about declaring it?

    Who's law are you concerned about, Irish or the Foreign country.


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    #3
    axel rose
    Registered Users Posts: 1,050 ✭✭✭axel rose


    All of them to be honest. If I were to put money in a spanish account and not be done for evading tax, how do I declare it? It would be about 30k. Given that I dont have an accountant and am an ordinary paye worker (not of the golden circle :(). Did I mention I was clueless?


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    #4
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    AFAIK, you will need to fill in a tax return form at the end of the year, it can be obtained from the revenue website. I had to fill one out a few years ago, and I remember there was a section where you could declare any foreign accounts you had. I'm open to correction on this however. Your best bet might be to ring your local revenue office and ask them.


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    #5
    axel rose
    Registered Users Posts: 1,050 ✭✭✭axel rose


    Thanks toots! You're a haven of cop on and logic for my ignorance! ;)


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    #6
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    ;) no worries! There might be a way to do it online now (twas about 4 years ago I filled in the form) which would save you a lot of paperwork. As far as I remember, the form was about 20 pages long, and only about 5 of them were relative to me :rolleyes:


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    #7
    GerardKeating
    Registered Users Posts: 7,650 ✭✭✭GerardKeating


    axel rose wrote: »
    All of them to be honest. If I were to put money in a spanish account and not be done for evading tax, how do I declare it? It would be about 30k. Given that I dont have an accountant and am an ordinary paye worker (not of the golden circle :(). Did I mention I was clueless?

    Assuming you already paid tax on the 30K, the only issue of Tax evasion would arise from the interest paid on the 30K and this can be easily declared on your tax returns annually.

    Since off-shore bank accounts can be used for untaxed income, you should make sure you can prove it is taxed income before you send it abroad.

    For the amount you are talking about, i would doubt that you would earn eneough "extra" interest over what you could earn here to make it worth the hasstle...


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    #8
    axel rose
    Registered Users Posts: 1,050 ✭✭✭axel rose


    Thanks Gerard
    Oh it was bloody taxed alright! Its not a mad profit Im after, I was chatting with a mate the other day and we have come to the conclusion that the government cant afford the bank guarantee.

    This got me thinking about how I could best protect my hard earned cash if the banks are in danger of crashing. (Its a deposit and stamp duty for a house).
    I have an address in Spain and as far as I am aware the banks dont have the same trouble as here. ( for trouble read corrupt and broke).

    God reading this over I sound like a posh git! Its a combination of working our asses off and having no social life :(


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    #9
    GerardKeating
    Registered Users Posts: 7,650 ✭✭✭GerardKeating


    axel rose wrote: »
    Thanks Gerard
    Oh it was bloody taxed alright! Its not a mad profit Im after, I was chatting with a mate the other day and we have come to the conclusion that the government cant afford the bank guarantee.

    Check that you would be covered under the equilvent spanish scheme...


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    #10
    Mr. Incognito
    Registered Users Posts: 9,798 ✭✭✭Mr. Incognito


    Sure you can- just decare the depoisit interest every year on your tax return.


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    #11
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    You are aware that Spain's in the middle of a property crash as well aren't you?

    Not sure what guarantee the Spanish banks have, but the Irish one is as good as you're going to get. The banks (well, the big ones anyway:)) are not going to crash. The government is not going to declare bankruptcy. Your money is perfectly safe in any bank covered by the government guarantee.


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    #12
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    dotsman wrote: »
    You are aware that Spain's in the middle of a property crash as well aren't you?

    Not sure what guarantee the Spanish banks have, but the Irish one is as good as you're going to get. The banks (well, the big ones anyway:)) are not going to crash. The government is not going to declare bankruptcy. Your money is perfectly safe in any bank covered by the government guarantee.

    Shhhhhh!!! You'll jinx it!


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    #13
    axel rose
    Registered Users Posts: 1,050 ✭✭✭axel rose


    I know there's a property crash and an economic downturn in Spain but the banks are more stable than they are here. I don't know what you are referring to as 'the main banks' as most of them seem to be in trouble at the mo.
    Anyway its more of a serious musing rather than a definite plan at this stage.


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    #14
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    axel rose wrote: »
    I know there's a property crash and an economic downturn in Spain but the banks are more stable than they are here. I don't know what you are referring to as 'the main banks' as most of them seem to be in trouble at the mo.
    Anyway its more of a serious musing rather than a definite plan at this stage.

    No trouble at all. They have plenty of liquidity (just received €7 billion remember!). Their share price is taking a hammering (and has been for the past 18 months) because investors fear that it will be a while before the banks return to paying out dividends and what that represents (ie, all bad debts have been written off, government repaid with interest, and underlying profit growth)


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    #15
    axel rose
    Registered Users Posts: 1,050 ✭✭✭axel rose


    7 billion so far, they are still cutting out the rot. At this point I just believe that anything could happen, (this is why I do my best to avoid Primetime :()


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    #16
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    And if the banks go bust, where would you get the rest of the cash for the house? ;)

    Really, and there is no nice way to say this, it's the kind of thinking along the lines of what you and your friend are coming up with that will do more damage to the banking system than anything else at this stage.


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    #17
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    axel rose wrote: »
    7 billion so far, they are still cutting out the rot. At this point I just believe that anything could happen, (this is why I do my best to avoid Primetime :()

    Well TBH, that particular programme has it in for the irish banks.


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    #18
    axel rose
    Registered Users Posts: 1,050 ✭✭✭axel rose


    BuffyBot wrote: »
    And if the banks go bust, where would you get the rest of the cash for the house? ;)

    Really, and there is no nice way to say this, it's the kind of thinking along the lines of what you and your friend are coming up with that will do more damage to the banking system than anything else at this stage.
    Buffybot, house/schmouse.......I dont care about a house at this stage. I never borrowed beyond my means and only have my current mortage as debt. The economy is bolloxed because people (supported by the banks) borrowed more than they could afford.

    Im looking after mine and Im not going to apologise for it. The banks have a lot more work to do if they want to keep a hold on my money. They can start by stopping bonuses and cleaning house!


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