The area of Cryptocurrencies has generated significant wealth for a lot of investors. Many of these crypto millionaires are sitting on large unrealised gains. If you are looking to "cash out" then Ireland could be the prefect place to do this. Through careful tax planning, you can avail of the generous Non-Dom regime in Ireland and minimise your tax exposure.
If you are not an EU citizen, you could also you use these gains to sign up to Ireland's Immigrant Investor Programme (IIP), which can provide residency for yourself and your family in Ireland.
What is Immigrant Investor Programme (IIP)?
The Immigrant Investor Programme (IIP) was set up by the Irish Government in 2012. The IIP was established to allow non-EEA national and their families to become permanent residents in Ireland on condition that they provide an approved investment in Ireland. Also known as an Irish Investment Visa, the application can be broken down into two separate parts; the person/individual and the investment.
The person/individual:
The main elements the application focuses on are; good character, the individual’s net worth, and the nature of the funds being invested.
The investment:
The nature of the proposed investment is of primary importance. Once the application is received with the necessary documentation it is processed for approval. Upon approval, the investment may proceed. Permission to reside in Ireland will be given to the individual and their family once the funds have been officially invested. This investment must come from the individual’s own resources and cannot be financed through loans or investments.
Investment Option - Real Estate Investment Trust (REIT)
Nathan Trust works directly with Goodbody Stockbrokers to facilitate your investment.
Criteria:
- The minimum figure for investment is € 2,000,000.
- The REIT must be on the Irish Stock Exchange.
- The investment must be held for a minimum of three years. The number of shares approved must be retained during this period, even in the event that their value rises above the original €2 million investment. After 3 years the investor may divest up to 50% of the shares. After 4 years the investor may divest no more than a further 25% of the shares. After 5 years there are no longer any retention obligations.
Benefits of REITs are:
- REIT provides an investor with a lower-risk property investment model where the investment is diversified across a pool of properties.
- Debt limits in REITs reduce the investor’s exposure to negative equity risk.
- REITs are exempt from corporation tax.
- REITs generate a regular income for investors as they are required to distribute the majority of profits annually.
