The numbers announced in sunday independent, shows there are currently 1,600 ultra-high-net-worth individuals or 'high-net-worth individuals' in Ireland with assets of over €20 million. This is up from 1,400 people in 2022.
Of this group, 250 people are non-residents for tax purposes. Revenue statistics also show that Ireland has seen an increase in the number of ultra-wealthy people seeking tax asylum status since 2020, with an additional 100 people becoming non-resident for tax purposes in four years.
When you talk to sunday independentPaul Leonard, head of audit services at Cooney Carey accountants, said the figures showed “there are so many people making money”.
He said the company sees “a lot of business owners who are making profits well into their 50s and 60s.”
“There are also a lot of sectors that investors are targeting. We see the same thing happening with insurance brokers, medical companies, accounting firms, law firms. There are also a lot of technology people who are making a lot of money. And sometimes there are weird crypto people.”
Mr. Leonard said from his experience that explaining to his clients the implications of registering as an asylum seeker for taxpayers almost always leads to them backtracking from their original plans.
“Interestingly, five out of six people are willing to pay their taxes because it is so difficult.
“For a lot of people, that's the first thing that comes to mind. 'Okay, if I sell the business I'm going to make 10 million euros. I'm going to become a non-resident.' And when we talk to them, they say I say this. I don't think it's worth it because you'll be making a lot of sacrifices. ”
“If someone becomes a non-resident, their mother might get sick and they won't be able to come home and spend time with them. Or if they have young grandchildren, they'll miss all of that. . Usually it's only suitable for people who don't have an emotional connection.
Prior to 2020, the Revenue Department, which oversees large cases and high net worth individuals (LC-HWI), was responsible for people with an estimated net worth of €50 million or more.
Since then, the Revenue Agency has defined high net worth individuals as individuals with a net worth of €20 million or more.
There are currently a total of 4,100 cases being managed in the LC-HWI department, an increase of 700 cases over the past two years.
This figure includes the 1,600 individuals with over €20 million quoted above, as well as a “watch list” of 2,500 people. The 'watch list' comprises spouses, children, trusts and foundations associated with people with assets of €20 million or more.
Although the list of wealthy individuals is confidential, it is known that some of Ireland's biggest businessmen have moved to tax shelters abroad. Racehorse magnates JP McManus and John Magnier are both Swiss taxpayers.
JP McManus and Dermot Desmond are among Ireland's richest men
Telecommunications operator Dennis O'Brien is tax resident in Malta. Dermot Desmond, founder of NCB Securities, is a Gibraltar taxpayer. Dr. Michael Smurfit, a big name in the paper and packaging industry, lives in Monaco.
By contrast, Ryanair chief executive Michael O'Leary, who ranks among Ireland's richest people with an estimated fortune of more than €800 million, pays his taxes here.
To qualify as a 'non-resident', you must spend less than 183 days in Ireland in a year, or 280 days in any two years.
New figures show that just 11 people paid €200,000 in domicile tax in 2022, despite a huge increase in the net worth of Ireland's richest people, resulting in €1.7 million being collected. This shows that only the ultra-wealthy people are This represents a decrease from 2019, when 17 people paid the levy.
“In many cases, you can avoid being subject to address taxes,” Leonard said.
“The workaround is to take your salary here in Ireland and pay the €200,000 income tax. Most people would do that.”
The residence tax was introduced by former Treasurer Brian Lenihan as a way to ensure that all wealthy non-residents who pay little or no income tax contribute to the state.
Meanwhile, according to Knight Frank's 2024 Wealth Report, if you want to be among the richest people in Ireland, you currently need to be worth at least $4.3 million (€4 million).
This is less than the $12.9 million required in ultra-wealthy Monaco or the $8.5 million required in Switzerland. This is less than the US ($5.8 million), but more than France ($3.3 million) and the UK ($3.1 million).
