Sportsperson Relief

You may claim a repayment of tax if you are a retired sportsperson. You will not be able to claim a refund of Pay Related Social Insurance (PRSI) or Universal Social Charge (USC)

Criteria for relief

You may qualify for this relief if you are a retired:

  • athlete
  • badminton player
  • boxer
  • cricketer
  • cyclist
  • footballer
  • golfer
  • jockey
  • motor racing driver
  • rugby player
  • squash player
  • swimmer
  • tennis player.

You must have permanently finished or retired from that profession. You may continue to participate in the sport on an amateur or unpaid basis.

At the time of retirement, you must be resident in one of the following locations:

  • Ireland
  • a European Union (EU) state
  • a European Economic Area (EEA) state
  • a European Free Trade Association (EFTA) state.

Calculating the relief

You may claim a deduction of 40% of certain income arising in any 10 of the following years:

  • your year of retirement
  • the preceding 14 years of assessment.

Qualifying income for relief

The tax relief applies to your earnings directly from participation in the sport only, such as wages or prize money. Any income you earned from items such as personal appearances, sponsorship or interviews does not qualify for tax relief.

Limits on relief

You may not use the relief to create a tax loss in any year of assessment.

If you return to professional sports after you claim the relief, the relief will be withdrawn. Any relief paid by us will be due back to us as this relief is only available when you fully retire.

Relief is available in respect of Income Tax only. No deduction is available in respect of Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

Interaction with pension products

Tax relief on contributions to a Retirement Annuity Contract (RAC) or a Personal Retirement Savings Account (PRSA) applies to an individual’s relevant earnings. Net relevant earnings are income from a trade or profession or non-pensionable employment.

Sportspersons Relief is not taken into account when calculating an individual’s net relevant earnings.

An individual’s total contributions should not exceed the limits on tax relief for pension contributions. A 30% limit applies below the age of 50 years to certain categories of professional sportspersons.

Time limit for claims

You must make your claim within four years from the end of the year in which you retire. If you are registered for Pay As You Earn (PAYE), use myAccount to claim on your Form 12. If you are self-employed, use the Revenue Online Service (ROS) to claim on your Form 11.