Foreign Lawyer Working in Ireland for foreign firm

Sue_DeNom

Hi All - I'm looking for advise on how to determine the impacts of moving to Ireland (rent and cost of living aside!).

I am a Luxembourg lawyer, working for a Luxembourg law firm.

If I were to move to Ireland, and still stay working in my current job, where would I be able to find out more information on the taxation impact and the actual legalities of being able to do this (I'm also investigating this from a Luxembourg point of view).

Unfortunately, I'm not the type of lawyer who'd know these things!

Any pointers would be greatly appreciated.

3DataModem

Outside of the personal tax and legality of it, your employer may have a strong view here;

• You working in a different jurisdiction might affect the (corporate) tax liability of your employer.
• You working in a different jurisdiction might affect the legal risk of your employer.

These may not have anything do with the law in each state, will be something only your employer can answer (and they may not share the reasons, for example).

Also:

• You will almost certainly be tax resident of Ireland.. It is possible for foreign EU employers to employ you directly in Ireland (they need to register with revenue, and of course process payroll correctly). I've done this. However whether your employer WANTS to do this is a different question. .
• Your employer might suggest switching to a 'services' agreement (i.e. work as a contractor) to simplify things. You have to decide if this is right for you. There are tax advantages to this, but essentially you'll still be a tax resident of Ireland.

Also;

• I suspect that for lawyers there may be some requirement for contracts to be executed in specific jurisdictions. No idea on the details, but this used to be super-relevant in a business I previously worked in.

CosyChair

https://www.boards.ie/discussion/comment/119172447#Comment_119172447

Excellent Advice given there my sister worked for a IT Company here on contract & lived abroad & didnt pay a single pennie tax here on her income from them so if there is people here thinking of doing the same its well worth it as you are only paying tax to pay the wages of people on the dole here.

cml387

https://www.boards.ie/discussion/comment/119172481#Comment_119172481

Did it occur to you that the tax she paid abroad "pay the wages of people on the dole" there too?🙄

Sue_DeNom

https://www.boards.ie/discussion/comment/119172447#Comment_119172447

Thanks.

Your first two points (tax liability & legal risk) are sort of the questions I'm looking for answers to, from an Irish point of view.

The decision whether the employer 'wants' to do this, is sort of moot, as I am a partner in the firm, so that isn't an issue.

Payroll isn't an issue either, as I don't get paid per se. Rather, I get an advance each month and after year end I get a slice of profits (less the advances received)

Another option that is being floated is the setting up of a Irish branch of the firm just for me (although, with the view to perhaps adding others in time)

I'm not necessarily looking for answers here, I just don't know where to even start looking into this. An pointers to where these answers would lay would be great.

Are there firms that specialize in this. Paying someone to consult on this is no problem.

Thanks again

3DataModem

https://www.boards.ie/discussion/comment/119174540#Comment_119174540

You need a corporate tax advisor.

Re: First point: As a partner in a firm working out of Ireland, the Irish revenue commissioners may take a view that your company is being partially run out of Ireland, and hit you for corporation tax. You and your company may be OK with this of course.

Re: Second point: That's what a good ... er ... lawyer can help with. It might not be a problem that your firm has a presence in Ireland but on the other hand it might be as (a) your company can be served / sued locally and (b) your company may become subject to Irish legal rules.

TCPIP

https://www.boards.ie/discussion/comment/119172481#Comment_119172481

The DSP's annual budget in 2021 was EUR23.4 billion. EUR2.15 billion of that accounts for payments for people "on the dole". Maybe consider looking beyond your own prejudices there mate.

Marcusm

https://www.boards.ie/discussion/comment/119174880#Comment_119174880

The situation you posit is a complex one which requires professional advice. You describe yourself as a partner in the firm. If the firm is regarded as a partnership for Irish tax purposes ( a facts & circumstances based test dependent on the law of the jurisdiction under which the partnership is formed), you may find that not only do you bring your own income into the charge to Irish income tax (on the assumption that the firm is a partnership and not a body corporate) but you will also bring a measure of each of the other partners’ income within the charge to Irish income tax. This is on the basis that their profit sharing will, in part, derive from the profession which is exercised in the State through your activities here. Depending on their own jurisdictions of residence, there may be a measure of relief or limitation into the scope of the charge to Irish income tax under a double taxation agreement. However, with the exception of foreign partnerships which establish offices here (or in the U.K. in analogous circumstances), professions will generally change their legal status (eg forming an Irish service company of which you are an employee) rather than create an obligation for each and every partner of the foreign firm to file an Irish income tax return irrespective of how small an amount of income which would fall into the Irish tax net.

in summary, I think you will find your proposal will not be attractive to your fellow partners once the true ramifications are established.

CosyChair

https://www.boards.ie/discussion/comment/119175270#Comment_119175270

How many countries in europe take nearly half your wages & give you very little in return they make you take out private health insurance you fall behind in your mortgage they take the house off you. Mate Life is GREAT

Mrs OBumble

There are companies that consult in this area - one is Globalisation Partners - https://www.globalization-partners.com/

(I have no relationship to them, just aware that they exist because they were / are opening offices here.)

They focus on employees, but likely have links to specialists who can consult re high management people too.

Something else to keep in mind is immigration status: very broadly the EU provides for freedom of movement for labour market purposes. It does not give citizens a unilateral right to live in each others countries. Of course there are ways to address these issues - and I'm definitely not the one to advise in detai.

TCPIP

https://www.boards.ie/discussion/comment/119175883#Comment_119175883

The unemployed ain't your enemy here.