Tax and revenue information

 If you are an Irish tax resident and domiciled individual, you should be subject to Irish tax rules on your worldwide income and gains. This includes foreign income earned abroad, such as interest income earned on deposits held in foreign bank accounts. On this page we explain what the withholding tax is, as well as provide necessary documentation and deadlines for each of the EU countries of our partner banks. We also explain how to obtain a certificate of tax residence.*

Tax treatment of foreign deposit interest income in Ireland

Deposit interest income earned on non-Irish deposit accounts located in the EU in a tax year should be subject to Irish income tax under Case III of Schedule D and should generally be taxable at a rate of 33%.

Where a deposit is placed with a Partner Bank and the account is located in Ireland, we would generally expect there to be an obligation for Irish DIRT to be operated by our Partner Banks. Where this is the case, our Partner Bank should pay the tax over to the Irish Revenue Commissioners (“Revenue”) on your behalf. At the moment, non of Raisin Bank’s Partner Banks offer accounts in Ireland.

In certain instances you may have suffered foreign withholding tax from a non-Irish bank on your interest income and you may be able to claim additional tax relief for this foreign tax.

Please note that as an Irish domiciled and tax resident individual, you may also be subject to Irish Pay Related Social Insurance (“PRSI”) on your foreign interest income.

Deposit Interest Retention Tax “DIRT”

Deposit Interest Retention Tax (DIRT) is a tax levied on interest earned on deposit accounts held by Irish account holders.

Irish tax rules generally require Irish banks, or EEA licensed banks, to operate DIRT on deposit interest paid or credited to deposit accounts held in Ireland.

Where you have opened a deposit account(s) with one or more of our Partner Banks which are held outside Ireland, our Partner Banks should not be obliged to deduct DIRT on the deposit interest earned on your deposits.

Instead, as an Irish tax resident and domiciled individual, the onus is on you to report this foreign deposit interest income in your annual income tax return. You should be subject to Irish income tax under Case III of Schedule D on receipt of this interest income. Where this is not paid over on time by you as part of filing your annual income tax return on or before 31 October 2022 (or November 2022 if filing online) for the 2021 tax year, the interest income should become taxable at a higher rate of 40%.

As mentioned above, in certain circumstances, you may also be subject to PRSI on the interest you have received from the non-Irish deposit accounts. Foreign deposit interest income received should be exempt from USC.

Find out more about DIRT here.

Withholding tax and documentation required by country

The withholding tax for interest generated on deposits of private individuals in Europe is harmonised across most countries. In most cases, this withholding can be lowered or canceled completely by presenting a certificate of tax residence. However, certain countries in which our Partner Banks are located may require local withholding taxes to be operated.

As a result, you may be entitled to claim tax relief for any foreign (non-Irish) tax withheld on deposit interest earned from bank accounts located in the EU or countries with which Ireland has a Double Taxation Agreement (“DTA”). Ireland has an extensive DTA network which includes the UK, and Irish domestic tax law generally provides that a tax credit may be available for foreign tax suffered up to the equivalent amount of Irish tax due on the total income.

Please note you should only claim a tax credit up to the equivalent amount of Irish tax due and will not be entitled to a refund from the Irish Revenue for any additional tax withheld in the other jurisdiction. In your income tax return, you should remember to claim a credit for any additional withholding tax you have suffered during the period.

Depending on the partner bank and the country in which it is located, the documents required from customers may differ. Here you can find a brief summary of the document requirements by country. In any case, we will always remind you with plenty of time what documents are required, where to send them, and when.

Bank: Euram Bank

General information:

The standard withholding tax rate on interest in Austria is 25%. This can be reduced to 0% by providing the bank with the document “Certification of Tax Residence in Ireland”.

Standard withholding tax:

25%

Reduced tax withholding:

0%

Term:

Between 1 year and, at most, up to 14 (fourteen) days before each interest payment (anniversary or maturity of the deposit).

Required Documentation:

To reduce the withholding tax, you will have to forward us the document “Certification of Tax Residence in Ireland” which we will instruct you on how to request to the Irish Revenue.

In case you have several deposits with the same partner bank:

If you have more than one term deposit with the same year of anniversary or maturity, you are only required to provide the documentation once.
If you have multiple open deposits with different anniversary or maturity years, you must send the relevant documentation each year.

Bank: J&T Banka

General information:

The Czech Republic has a standard withholding tax of 15%, but due to double taxation agreements between the Czech Republic and Ireland, it is possible to reduce this to 0% if the documentation indicated below is presented.

Standard withholding tax:

15%

Reduced withholding tax:

0%

Term:

Between 3 months and, at least, 4 weeks before the expiration date.

Required Documentation:

To reduce the withholding tax, you will have to provide a tax residence certificate (Letter of Residence) for the Czech Republic issued by Irish Revenue.

In case you have several deposits at J&T Banka:

Regardless of whether you have one or more open term deposits, send us your Fiscal Residence Certificate up to 4 weeks before each of them expires. IMPORTANT: According to J&T Banka, the Czech tax authority will not accept Tax Residence Certificates issued more than 90 (ninety) days before paying interest.

Bank: Younited Credit

General information:

France has a standard withholding tax of 0% so no documentation is needed and your deposit will not be taxed in France.

Standard withholding tax:

0%

Banks: Banca Farmafactoring and Banca Privata Leasing

General information:

Italy has a standard withholding tax of 0% so no documentation is needed and your deposit will not be taxed in Italy.

Standard withholding tax:

0%

Bank: AS BlueOrange Bank

General information:

Latvia has a standard withholding tax of 20% on deposits, but due to the double taxation agreement between Austria and Ireland, customers are able to reduce this withholding tax to 10% by presenting the documentation indicated below.

Standard withholding tax:

20%

Reduced withholding tax:

10%

Term:

The form must arrive in Latvia between 1 year and, at most, up to 4 weeks before the maturity date. It is important to note that Revenue.ie can take up to 6 weeks to process the document so it is best to send your application to the Tax Authorities no later than 12 weeks before the due date. These documents are valid for 5 Years.

Required Documentation:

To reduce the withholding tax, you will have to provide a tax residence certificate (Letter of Residence) for Latvia issued by Irish Revenue. In addition to this we will provide you with an additional residence form prefilled with some of your data. This form will have to be signed, stamped by Irish Revenue and sent to Berlin. Further instructions on this process are made available to you following the opening of your deposit.

In case you have several deposits with the same partner bank:

If you have more than one term deposit with the same expiration year, you are only required to provide the documentation once.
If you have multiple open deposits with different expiration years, you must send the relevant documentation each year.

Bank: Alior

General information:

Poland has a standard withholding tax of 19%, but due to a double taxation agreement between Poland and Ireland, it is possible to reduce this to 10% if the documentation indicated below is presented.

Standard withholding tax:

19%

Reduced withholding tax:

10%

Term:

At the latest six weeks, but not earlier than six months, before the interest payment.

Required Documentation:

To reduce the withholding tax, you will have to provide a tax residence certificate (Letter of Residence) for Poland issued by Irish Revenue.

In case you have several deposits with the same partner bank:

If you have more than one term deposit with the same expiration year, you are only required to provide the documentation once.
If you have multiple open deposits with different expiration years, you must send the relevant documentation each year.

Bank: Banco Português de Gestão

General information:

Portugal has a standard withholding tax of 28%, but due to double taxation agreement between Portugal and Ireland, it is possible to reduce this to 15% if the documentation indicated below is presented.

Standard withholding tax:

28%

Reduced withholding tax:

15%

Term:

No later than 4 weeks before maturity.

Required Documentation:

To reduce the withholding tax, you will have to provide a signed Portuguese tax form “21-RFI”  and a tax residence certificate (Letter of Residence) for Portugal issued by Irish Revenue. The tax form “21-RFI” is a standard form that Raisin will provide you with after opening an account, in the electronic mailbox of your online banking. Please submit the respective documents to your tax office 12 months (not earlier!) before the due date. (Reason: the Portuguese tax authorities only accept tax documents issued or signed no more than 12 months before the due date) At the latest 4 weeks before interest payment (i.e. before maturity) you send the completed and signed form in the original by post to Raisin – we will then forward it to the bank free of charge for you.

In case you have several deposits with the same partner bank:

These forms have to be submitted once per term deposit per calendar year.

Bank: Banca Farmafactoring

General information:

Spain has a standard withholding tax of 19%, but due to double taxation agreement between Spain and Ireland, it is possible to reduce this to 0% if the documentation indicated below is presented.

Standard withholding tax:

19%

Reduced withholding tax:

0%

Term:

Before the deposit is opened.

Required Documentation:

To reduce the withholding tax, you will have to provide a Spanish tax form “Auto Declaración de Residencia Fiscal de Persona Física y Jurídica” which we will provide along with instructions on how to complete it.

In case you have several deposits with the same partner bank:

This form only has to be submitted once per person and so will only be required with the opening of the first deposit.

 

Bank: Privatbanka

General information:

Slovakia has a standard withholding tax of 19%, but due to double taxation agreements between Slovakia and Ireland, you will have the possibility to reduce this withholding to 0% if you submit the documentation indicated below.

Standard withholding tax:

19%

Reduced tax withholding:

0%

Term:

Between 1 year and, at most, up to 4 (four) weeks before the expiration date

Required Documentation:

To reduce the withholding tax, you will have to provide a tax residence certificate (Letter of Residence) for Slovakia issued by Irish Revenue.

In case you have several deposits with the same partner bank:

If you have more than one term deposit with the same expiration year, you are only required to provide the documentation once.
If you have multiple open deposits with different expiration years, you must send the relevant documentation each year.

Certificate of tax residence

Introduction

In order to avoid partner banks applying a withholding tax to the interests generated by their deposits, the clients will have to present a Certificate of Tax Residence issued by the Irish Revenue. In this way, clients can justify that they are tax residents in Ireland and the partner bank may apply reduced withholding tax on the interest earned by the contracted deposits.

Validity

Unless the specific regulations of the tax certificate establish otherwise, the tax certificates will be valid for the year of issue as long as there are no changes in the circumstances determining their content.

Request

Customers with tax residence in Ireland proceed as follows:

In order to obtain the Tax Residence Certificate, the client must submit a Letters of Residence request via ROS or myAccount on Revenue’s online service: https://www.revenue.ie/

Additional details regarding the myAccount service, including how to register can be found here.

Once logged in to myAccount, the Letter of Residence link can be found in the “Manage My Record” section. Complete the short application form including e-mail address and the relevant tax year. Clients should make sure to select the relevant country from the “Jurisdiction” drop down.

Letter of residence requests should be processed by the Revenue authority within a few days and the Letter of Tax Residence will be sent to the e-mail address provided during the request process.

Documentation and other frequently asked questions

The partner banks provide, at the expiration of the deposit or at the time of payment of the interest generated, all relevant information on interest income, applied withholding tax and exchange rate. You will receive this document in the Mailbox of your online banking.

Also, at the beginning of the year we will provide you with a document containing all the relevant fiscal information related to the previous year that you will need to file your taxes.

Raisin will in some cases be able to provide you with a withholding tax form which will then need to be submitted to your local tax authority, signed, and stamped and returned to the partner bank concerned. Our service in this matter is limited to forwarding the forms and communicating to you that we have done so.

We will always make every effort to ensure all information and forms required by the Irish tax authority from the countries you are investing in is up to date. Please bear in mind that in rare cases, a tax rule could change in any of the countries where your investments are placed via Raisin.  For this reason, it is important that you contact your local tax authority or a professional tax adviser in all these matters.

Please make sure your forms are correctly filled in, have a valid signature, are in good format and are sent at the right time (not too early, not too late) to reduce the withholding tax. If you think a Partner Bank has wrongly withheld taxes our Customer Services Team will be pleased to answer any questions you may have. In this regard, please note that we do not provide tax advice and, therefore, tax-related information is given on a non-reliance basis only. We strongly advise customers to seek individual tax advice in case of doubt.

Disclaimer

We kindly ask you to note that the declaration of taxes, be it income tax, withholding tax or any other type of tax is your personal responsibility. Your specific tax treatment depends on your personal circumstances and there may also be future changes in the tax treatment.

At Raisin Bank we do not offer tax advice and we assume no responsibility for the accuracy of the tax information provided. For more information, consult with your tax advisor or directly with Revenue.