Tax Residence

How do I know if I am resident in Ireland for a tax year?

Your residence status for tax purposes is determined by the number of days that you are present in Ireland in a tax year. You will be resident in Ireland for a tax year in either of the following circumstances:

  • If you spend 183 days or more in Ireland during a tax year or,
  • If you spend 280 days or more in Ireland over a period of two consecutive tax years, you will be regarded as resident for the second tax year. For example, if you spend 140 days here in Year 1 and 150 days here in Year 2, you will be resident in Ireland for Year 2.

What income will I be chargeable to tax on in Ireland?

You will be taxed on your worldwide income, for a tax year, that you are resident, ordinarily resident and domiciled in Ireland for tax purposes.

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What does the term "Ordinarily Resident" mean?

The term ordinarily resident as distinct from resident refers to an individual's pattern of residence over a number of years. If you come to Ireland for the first time and remain resident for three consecutive tax years, you will become ordinarily resident from the beginning of the fourth tax year.

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What is Domicile?

Domicile is a concept of general law. It may be broadly interpreted as meaning residence in a particular country with the intention of residing permanently in that country. Every individual acquires a domicile of origin at birth. A domicile of origin will remain with an individual until such time as a new domicile of choice is acquired. However, before the domicile of origin can be shed, there has to be clear evidence that the individual has a positive intention of permanent residence in another country and has abandoned the idea of ever returning to live in his/her country of birth.

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I am coming to Ireland to take up a temporary employment and will not become resident for Irish tax purposes. How will I be taxed? What tax credits am I entitled to receive?

A proportionate of tax credits are available to non resident Irish citizens, and to citizens, subjects or nationals of another EU Member State and to residents or nationals of a country with which Ireland has a double taxation agreement. The proportion of credits due are determined by reference to your income for the tax year which is subject to Irish tax, over your income from all sources. However, residents of another Member State of the European Union are entitled to full personal tax credits in respect of any tax year that 75% or more of their worldwide income is taxable in Ireland.

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Do the days I spend in Ireland have to run consecutively in order for me to be considered resident in Ireland for a tax year?

No. It does not matter if you come and go several times during the tax year or if you are here continuously. A count is made of the total number of days you spend in Ireland for any purpose in each year.

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Can I elect to be resident?

Yes. Should you arrive in Ireland in a particular year and you do not spend enough days here to be resident, you may, if you wish, elect to be resident. A condition of making the election is that you must satisfy your local Revenue office, that you will be resident here in the following tax year. You should also be aware that once you have made an election, you cannot withdraw it.

As a resident you will be liable to pay tax on your worldwide income in Ireland. For further details see Booklet Res. 1 Coming to Live in Ireland.

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What happens in the year of arrival in Ireland?

If you become resident in Ireland during a tax year and can show that you intend to remain resident here in the following tax year, you will not be taxable on earnings from an employment outside Ireland, prior to the date of arrival.

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What happens in the year of departure from Ireland?

If you are resident in Ireland for a tax year and leave the country, with the intention of not being resident for the following tax year, you will not be taxable on employment income earned outside Ireland, in the part of the year after your departure from Ireland.

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What is the position if you become resident here and your spouse does not?

If you take up employment here, become resident in Ireland, but your spouse is not resident here,

  1. The non resident spouse has no income, and
  2. The earnings of the spouse working in Ireland is the only source of income

You may be entitled to claim the Married Person's Tax Credit and the increased Rate Band in this instance. Each case will be examined on an individual basis.

Can I make a Repayment Claim on leaving the country?

On leaving the country you should notify Revenue, as you may be entitled to claim a tax refund. You may do so by completing Form P50 and submitting it to your local Revenue office with Form P45 (parts 2 & 3) which you should receive from your employer.

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What is a Double Taxation Agreement?

As some types of income can be taxable in both the country where it is sourced and also in the country in which the recipient of that income is resident, Ireland has a number of double taxation agreements with other countries, in order to avoid taxation in both countries or to allow credit where tax is paid in both countries.

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How will a Double Taxation Agreement prevent my income from being doubly taxed?

If your income is chargeable to tax in Ireland and in a country with which Ireland has a double taxation agreement, a double charge to tax is prevented by either:

  • Exempting the income from tax in one of the countries, or
  • Allowing a credit in one country for the tax paid in the other country on the same income.

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What happens if my income is from a country that Ireland does not have a Double Taxation Agreement with?

You will be charged to tax on the net amount of income received by you. The net income is the amount received after foreign tax has been deducted. There is no credit available for foreign tax paid. A list of countries which Ireland has a double taxation agreement with are available in Booklet Res. 1, Coming to Live in Ireland.

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Am I entitled to any additional allowances/relief's as an Irish resident working abroad?

Yes, for any tax year that you are resident in Ireland, you may be entitled to one of the following additional relief's

  • Trans-Border Workers Relief,
  • Seafarer Allowance.

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Trans-Border Workers Relief

Who can claim?

An individual who is resident in Ireland and commutes daily/weekly to his/her place of work abroad and who pays tax in the other country on the income from that employment. The relief effectively removes the earnings from the foreign employment from liability to Irish tax where foreign tax has been paid.

For further information see Booklet Res. 1 Going To Work Abroad.

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Seafarer Allowance

This is an amount which an individual can deduct against his/her seafaring earnings when calculating his/her taxable income.

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