Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The rules apply at home as if the investor were a typical small landlord who was renting a three-bedroom house. The income is treated is the same, except that it comes by way of dividend rather than rent. Capital gains tax is the same. It is far more flexible. One does not need to sell the house in order to get one’s money out; one need only sell the shares. A person who has an investment of €20,000 and who needs the money can sell the shares. It is a much more flexible way of having a property play which is unlikely to lead to the madness we had during the Celtic tiger days. The same rules apply to an investor who lives abroad. The taxation of persons abroad who have investments in other jurisdictions is governed by tax treaties with the sovereign states concerned. A withholding tax applies, and a portion of the withholding tax is recoverable. As I said in the note, one would expect that 15% to 20% of the withholding tax would be retained in the jurisdiction of the investment.

The purpose of tax is to pay for the goods and services, and cover the liabilities, of the State. People living in New York are not enjoying the goods and services of this State. They are not driving on the State's roads or having their roads lit up by public lighting from this State, their children are not going to school here and they are not availing of the hospitals. While they should have a liability as investors, they should have a different liability from the generality of taxpayers. In the Deputy's example, Patricia is taxed under Irish law, and while there are various measures regarding residence and domicile, if John’s tax jurisdiction is the US, he is taxed in accordance with that law. If there is a crossover, it is governed by the tax treaties.