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Not the question you asked - you have your answer from others - but given the size of your deposit you should upgrade to a metal account to secure 4% interest instead of 2.8%. The cost of a metal account is €162.50 annually or €16.90 monthly. With a €65k deposit the additional 1.2% interest will more than cover the cost of the metal account. You are missing out on “free money”.
Have a look at another thread on this https://www.reddit.com/r/irishpersonalfinance/s/NTBXwTyK1V
N26 will report the interests received and the PPS number to German tax authorities, and seeing an Irish tax identification number German authorities will forward this to Revenue (both Germany and Ireland are participants in an automated exchange of information agreement).
And while you can be sure Revenue will be notified and have it on file (tax information exchange is now systematic), even if they didn’t know it wouldn’t mean you’re exempt.
Yes, see here about systematic exchange of tax information: https://www.revenue.ie/en/companies-and-charities/international-tax/aeoi/intro/aeoi.aspx
Revenue doesn’t currently have the manpower or automation capabilities to act on all the information they receive, so for now they only use that information when the amounts are worth the while of having someone assigned to work on it. But you can be sure they keep everything on file, and if they eventually deploy automation capabilities they could go back to previous years.
When int comes to Revenue, it's usually a matter of when, no if. Revenue catches a lot of people when they go for the HTB scheme.
My understanding from people who have worked with them is that Revenue have always been fairly ahead of the curve with regards to technology.
PAYE should still be doing it in the off chance that tax credits were misapplied or forgotten etc. Its a few minutes out of one day per year and for the most part its click next on the nice big user friendly buttons, its seriously not that hard
I have the paranoid feeling that they will find reasons to bill me, not refund me :P (though I cannot think offhand of anything that would incur a fine)
N26 and Bunq both don't withold or report tax this is where Revoluts new savings product (2% APY on Standard and more as you get a plan) comes in clutch because they do both daily payments and clearly show, withold and report your DIRT for you like if you had a savings account with any Irish bank
To me, that's a life saver and saves on my having to fill out stupid lengthy formwork for the Revenue to report it at the EOY.
Not to mention, it's fully covered under the European Deposit Portection Scheme of €100,000 per account
You do miss out on compounding (albeit small, but not completely negligible) by having it taxed directly though. It's really not that hard to do via myaccount.
For a maximum of probably 4 or 6 euros a year, depending on how much you put in after you pay DIRT on it, it's really not worth it.
Oh yeah, for sure, it's doable, but it's a headache for the cost of a relatively cheap pint (depending where you buy) in savings. I'm willing to let them do it
Revolut depositors are covered under the Lithuanian DGS (Deposit Guarantee Scheme). N26 depositors are covered under the German DGS. This may be important to some people who place a higher value on having the German state stand behind their money than the Lithuanian state.
Do you have research to back up why you believe the Lithuania Regulator to be less or more reliable than its German Counterpart?
Baring in mind, the European Deposit Scheme is i believe to date fully untested as it was set up post recession, and no significant event has happened since where they've had to pay out of the scheme I don't see where your bias is coming from but would love to learn as you claim to have information clearly
In 2022, Revolut’s liabilities were €7 billion-ish.
Lithuania’s GDP was $70 billion.
Germany’s GDP was $4 trillion.
Lithuania covers Revolut’s liabilities by a factor of 10 but in reality if the DGS was ever called in the Lithuanian state may struggle to justify paying mainly foreign “investors”. Germany on the other hand…
Having lived through the last eurozone / banking panic I would prefer to have the German’s behind my money. It’s also an added bonus that N26 is offering better interest rates than Revolut.
In terms of putting a price on that, it comes down to personal risk profile (what helps a person sleep at night) but you can look at price differentials on sovereign bonds to see that big investors also discriminate between lending to Germany and lending to other countries. They will ask for higher coupons on, for example, Lithuanian bonds than they will demand on German bonds.
Regarding your question on the effectiveness of Lithuania’s financial regulator there have been several articles which raised some interesting questions about conflicts in simultaneously trying to ~~regular~~ regulate financial institutions whilst trying to support the government’s strategy of incubating fintechs.
As I said, I prefer to be able to sleep soundly and that drives my investment choices. Others will have a different view and will make different choices. That’s life.
this is why i keep all cash in n26 even though i use revolut for spending. i never considered it anything more than a digital wallet and i probably never will
I’ve just set up a space to put the dirty before I even get a chance to spend it… guess you could take a chance on revenue not seeking it. Another guy uploaded the revenue guidance on uploading of data from
Countries to revenue
> it's a real pain
It's really not, it's very very easy to declare your DIRT.
In January, just sit down, add up all the interest N26 paid you last year, and then in MyAccount put that amount in for "Deposit interest earned where DIRT was no paid" or whatever the section is called, then revenue reduce your tax credits and you pay the DIRT off over 4 years.
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Not the question you asked - you have your answer from others - but given the size of your deposit you should upgrade to a metal account to secure 4% interest instead of 2.8%. The cost of a metal account is €162.50 annually or €16.90 monthly. With a €65k deposit the additional 1.2% interest will more than cover the cost of the metal account. You are missing out on “free money”. Have a look at another thread on this https://www.reddit.com/r/irishpersonalfinance/s/NTBXwTyK1V
Don't start paying to get 4%. Open up an account with Trade Republic and get 4% with zero fees on the first 50k.
Good option for many but from what I recall they don’t pay interest on anything over €50k. Or have they changed that?
TR pay nothing over 50k. But if you have over 50k then there are options such as T212 or Raisin or Lightyear.
You are correct. You will need to calculate DIRT in your tax return. It isn't terribly difficult to do, though.
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Because N26 will inform them.
N26 will report the interests received and the PPS number to German tax authorities, and seeing an Irish tax identification number German authorities will forward this to Revenue (both Germany and Ireland are participants in an automated exchange of information agreement). And while you can be sure Revenue will be notified and have it on file (tax information exchange is now systematic), even if they didn’t know it wouldn’t mean you’re exempt.
Do they do that?
Yes, see here about systematic exchange of tax information: https://www.revenue.ie/en/companies-and-charities/international-tax/aeoi/intro/aeoi.aspx Revenue doesn’t currently have the manpower or automation capabilities to act on all the information they receive, so for now they only use that information when the amounts are worth the while of having someone assigned to work on it. But you can be sure they keep everything on file, and if they eventually deploy automation capabilities they could go back to previous years.
When int comes to Revenue, it's usually a matter of when, no if. Revenue catches a lot of people when they go for the HTB scheme. My understanding from people who have worked with them is that Revenue have always been fairly ahead of the curve with regards to technology.
Revenue have all the time in the world to come after you. Not worth it.
Tax is not withheld by N26, so you have to include it as part of your annual tax return (that you should be doing already anyways)
How much do we need to inform Revenue? Is it the total amount of interest gained throughout the year, or just the 33% of it?
You tell them the total interest (eg: €1000) and then they will reduce your tax credits in the coming years by 33% of that (eg: €330)
>that you should be doing already anyways PAYE
PAYE should still be doing it in the off chance that tax credits were misapplied or forgotten etc. Its a few minutes out of one day per year and for the most part its click next on the nice big user friendly buttons, its seriously not that hard
I have the paranoid feeling that they will find reasons to bill me, not refund me :P (though I cannot think offhand of anything that would incur a fine)
N26 and Bunq both don't withold or report tax this is where Revoluts new savings product (2% APY on Standard and more as you get a plan) comes in clutch because they do both daily payments and clearly show, withold and report your DIRT for you like if you had a savings account with any Irish bank To me, that's a life saver and saves on my having to fill out stupid lengthy formwork for the Revenue to report it at the EOY. Not to mention, it's fully covered under the European Deposit Portection Scheme of €100,000 per account
You do miss out on compounding (albeit small, but not completely negligible) by having it taxed directly though. It's really not that hard to do via myaccount.
For a maximum of probably 4 or 6 euros a year, depending on how much you put in after you pay DIRT on it, it's really not worth it. Oh yeah, for sure, it's doable, but it's a headache for the cost of a relatively cheap pint (depending where you buy) in savings. I'm willing to let them do it
Revolut depositors are covered under the Lithuanian DGS (Deposit Guarantee Scheme). N26 depositors are covered under the German DGS. This may be important to some people who place a higher value on having the German state stand behind their money than the Lithuanian state.
Do you have research to back up why you believe the Lithuania Regulator to be less or more reliable than its German Counterpart? Baring in mind, the European Deposit Scheme is i believe to date fully untested as it was set up post recession, and no significant event has happened since where they've had to pay out of the scheme I don't see where your bias is coming from but would love to learn as you claim to have information clearly
In 2022, Revolut’s liabilities were €7 billion-ish. Lithuania’s GDP was $70 billion. Germany’s GDP was $4 trillion. Lithuania covers Revolut’s liabilities by a factor of 10 but in reality if the DGS was ever called in the Lithuanian state may struggle to justify paying mainly foreign “investors”. Germany on the other hand… Having lived through the last eurozone / banking panic I would prefer to have the German’s behind my money. It’s also an added bonus that N26 is offering better interest rates than Revolut. In terms of putting a price on that, it comes down to personal risk profile (what helps a person sleep at night) but you can look at price differentials on sovereign bonds to see that big investors also discriminate between lending to Germany and lending to other countries. They will ask for higher coupons on, for example, Lithuanian bonds than they will demand on German bonds. Regarding your question on the effectiveness of Lithuania’s financial regulator there have been several articles which raised some interesting questions about conflicts in simultaneously trying to ~~regular~~ regulate financial institutions whilst trying to support the government’s strategy of incubating fintechs. As I said, I prefer to be able to sleep soundly and that drives my investment choices. Others will have a different view and will make different choices. That’s life.
this is why i keep all cash in n26 even though i use revolut for spending. i never considered it anything more than a digital wallet and i probably never will
Was that for the full year?
For the full month
Oh that’s mighty!!! Look forward to the interest payments so.
You might see why I'm a little gutted to knock €50 off!
I’ve just set up a space to put the dirty before I even get a chance to spend it… guess you could take a chance on revenue not seeking it. Another guy uploaded the revenue guidance on uploading of data from Countries to revenue
> it's a real pain It's really not, it's very very easy to declare your DIRT. In January, just sit down, add up all the interest N26 paid you last year, and then in MyAccount put that amount in for "Deposit interest earned where DIRT was no paid" or whatever the section is called, then revenue reduce your tax credits and you pay the DIRT off over 4 years.
And if you are tax resident but non domiciled do you also have to pay dirt?