Tax and revenue information

On this page we explain what the withholding tax is, as well as providing 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.

At Raisin.ie 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.

1. Information on withholding tax

Documentation for Raisin.ie customers

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 your Raisin.ie Electronic Mailbox.

Also, at the beginning of the year Raisin.ie 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.

Harmonized withholding tax in the European Union

The withholding tax for interest generated on deposits of private individuals in Europe is harmonized across most countries. The tax rate is, in general, very similar to the current one in Ireland. In most cases, this withholding can be lowered or canceled completely by presenting a certificate of tax residence (see details below: “3. Certificate of tax residence”).

Taxes on deposits in Ireland

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

For 2019, DIRT is charged at 35% on all interest payments.

Find out more about DIRT here.

2. Documentation required by country

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, Raisin.ie will always remind you with plenty of time what documents are required, where to send them, and when.

Bank: Euram Bank

General information:

Austria has a standard withholding tax of 25% on deposits, but due to the double taxation agreement between Austria and Ireland, customers are able to reduce this withholding tax to 0% by presenting the documentation indicated below.

Standard withholding tax:

25%

Reduced tax withholding:

0%

Term:

Between 1 year and, at most, up to 14 (fourteen) days before the expiration date

Required Documentation:

To reduce the withholding tax, you will have to provide a tax residence certificate (Letter of Residence) for Austria 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: 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%

Bank: 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.

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 Portugese tax (CLAIM FOR TOTAL OR PARTIAL EXEMPTION FROM PORTUGUESE WITHHOLDING TAX, UNDER THE CONVENTION FOR THE AVOIDANCE OF DOUBLE TAXATION BETWEEN PORTUGAL AND IRELAND) form stamped by the Irish authorities sent in original to Berlin. We will provide you with the form as well as instructions on how to complete it.

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

This form has 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.

 

3. 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.