Running the Clock and becoming non-res..

Is this Bill Badbody?

Sounds like an excellent way to end up getting divorced and despised by your family, can't imagine your kids and OH would be too happy about your plan

What does "running the clock" mean?

Why would you want to move away from your family for a few years? If it's a tax-saving/avoiding measure (running the clock suggests that to me, whatever it means), it's a fairly extreme one!

It obviously a substantial inheritance/ windfall. The difference between Ireland and Italy on something like this could be anything from 2-300k on a sum sub a million. I know the previous owner of Kingspan went to Italy to avail of a difference tax regime in the late noughties.

I am also presuming that OP has all the tax advice received already of when he has to exit to avail of this tax avoidance. It's is something anyone would have to consider if the sum involved was substantial enough.

This is not really an option for a sub 100k situation and from 1-150k it might be borderline above that it is something amy same person would have to look at.

If the OP has already received the windfall, then any tax will be due, and no amount of running clocks will negate the liability.

Exactly, was just about to post same

@TaxExileTrainee, congratulations on your impending windfall.

I considered a similarish model but in a somewhat reverse manner a few years ago & ultimately decided to stay with the family which worked out well in hindsight.

If your impending windfall is really substantial then I'd be asking myself whether the CAT I'd be liable for in Ireland would really put such a significant dent into the windfall that it'd be seriously undermined. Not sure if I put that well but consider the following:

Lets say your windfall is EUR5 million & you lifetime CAT allowance is fully intact & your allowance for this particluar inheritance is the max allowed (EUR335,000).

5,000,000 -335,000 = 4,665,000 liable for CAT at 33%.

4,665,000 * 0.33 = 1,540,000 tax liability.

5,000,000 - 1,540,000 = 3,460,000 into the paw after Irish taxes are paid. Put in your own numbers but I would not be leaving my family for 3 years to avoid a CAT bill of 1.54 million when I could have 3.46 million in the paw in the intervening 3 years.

Further the higher your windfall number the more you should be leaning towardstaying with the family as you will have a greater abundance of cash in the paw after taxes are paid.

Even further as you have extraordinarily larger quantity of money to hand your lifestyle will change, perhaps you'll quit work & take up some less than homely habits while your off in your Taxen haven flying solo - this can have a devastating effect on family life & no amount of cash can buy back a happy family.

Best of luck whatever you decide, do let us all know.

I'd stay with the family.

I think at the figure of 5 million I be carrying the family with me. I think it's 24 months you have to spend away. It may be 36. But at 500-750k/ year I be taking the family with me unless the children were at critical education years.

However have seem lads abroad over the years it really depend on the mentality of the individuals both the person going and the spouse at home. I think you are allowed back in Ireland so long during the.year. It important to time this so that you take the maximum pressure off your spouse.

Depending on she works at it may be possible for her to take a career break for the summer holidays periods and come out with the children for extended period.

If the children are old enough they may be able to fly by themselves and come out to you at midterms and Easter.

Biggest issue is what you plan to do while out there. Will you be able to work in your career area out there. I presume it's Portagul, Italy or elsewhere in Europe you are going to not to the Bahamas..

Biggest issue can be companionship especially for the person by themselves. Often the spouse at home with the children can not understand this and it can become an issue. After 4-6 weeks out in any country you will become bored visiting sites, golfing or going for walks.

Have you considered what you will do. Any job no matter how menial will eat time for you. Even though you do not need the money it prevents boredom.

The other risk is either person will meet someone else. Straying is one issue but a relationship is a whole different ballgame

up to 182 days in a tax year, or 280 days over the course of the previous 2 years, and you are non-resident.

I think that is only where you have been abroad a few years. I am sure OP has all this clarified with his accountant

When you are avoiding tax the last thing you want to do is make a mistake. The Irish revenue commissioners watch everything. Use the wrong credit card, pay the wrong bill etc they will catch you. I imagine they can access flight records in& out of Belfast

Regarding your haven of choice check out Nomad Capitalist on YouTube. He has good insight into pros and cons of the destinations you mentioned above.

For what it's worth, I would give very serious thought to taking the wife and youngest child with you. I realise it'll be disruptive but it will also be an adventure for them, and a couple of years in a primary school abroad will be quite the experience for your child.

I have no direct experience myself, but I do have a family member who did well-paid expatriate jobs for most of his career (and is still doing them). He and his wife tried both approaches, but fairly quickly came to the conclusion that keeping the family together was definitely the best solution, at least until the kids were into the early teens, when school stability and stability of the peer group network became a much bigger issue.

Which means that, if you want this to be even your plan B in case plan A doesn't work out, you need to pick your destination country knowing there's a suitable school for your 9-year old. Your choice will be local schools or an international school, which has its own issues but avoid language problems. (I'm assuming your child doesn't speak Portuguese, Maltese or Italian.)

Would you consider bringing your youngest and your partner abroad with you. Treat it as an adventure and an opportunity for the youngest to experience life abroad for a few years. Learn a new language. Have some new adventures. Those in Uni would be delighted to have a free house or whatever and are less likely to be put out by your move. With that sort of cash in the bank, you could pay for a private secondary school so you wouldn't be tied in as much to location and feeder schools.

Fond of a bit of tax management but I’d agree to try bring partner and younger child and would say tread carefully and make sure the tax saving is really worth it if doing so without them. If going without partner and child mb try to build in as much as possible that your partner and family travel to meet you and even try to incorporate another location (mb UK) into the plan so you can spend some more time together.

While not for tax purposes from my own experience long distant relationships are hard and get harder as time goes on. For it to work in the first place you both need to be both fairly independent and good communicator’s but even then things will get complicated when an issue/problem arises for one and the others is away or one of you upset with the other. Arguments by txt message / phone can spiral v fast, its very easy for one person in the relationship or a child to feel unsupported, misinterpret something etc when the distance is there and sometimes a hug is really what’s needed.  There are some positives too though, you begin to really appreciate and look forward to the time you get together, adult time when you do get to see your partner is usually great as frustrations have been building up, you get to do some things you probably wouldn’t together etc

I also worked offshore with colleagues who had kids back at home. Kids loved the expensive holidays but it was hard work for the remaining parent. Most marriages fell apart. Money doesn't buy love. Remember that.