The Special Assignee Relief Programme (SARP)

Relocating to Ireland as part of a multinational assignment can be exciting - but it also brings unique financial and tax challenges. To attract global talent, Ireland introduced the Special Assignee Relief Programme (SARP), offering significant income tax relief for highly skilled workers.

If you qualify, SARP can reduce your Irish tax bill by tens of thousands of euro per year. But the rules are complex, the deadlines strict, and mistakes costly. That’s why at Irish Tax Hub, we’ve developed proven strategies to maximise SARP relief while ensuring flawless compliance.

This guide covers everything you need to know about SARP in 2025 - eligibility, calculations, scenarios, pitfalls, and how our team can help you make the most of your relocation.

What Is SARP?

The Special Assignee Relief Programme (SARP) was launched in 2012 to:

• Encourage multinational employers to assign top talent to Ireland.
• Help Ireland compete globally as a destination for foreign direct investment (FDI).
• Reduce the tax burden on internationally mobile executives.

In simple terms, SARP lets you exclude 30% of your employment income above €100,000 (up to €1,000,000) from Irish income tax.

It applies for up to 5 consecutive years, and can result in net savings of €10,000–€50,000+, depending on your salary.

👉 At Irish Tax Hub, we call SARP Ireland’s hidden gem - hugely valuable, but underutilised because of complex rules. Click here to calculate how much you can save.

Who Qualifies for SARP?

You may qualify if:

1. You’re assigned to Ireland by a qualifying employer (must be tax-resident in a country with a Double Taxation Agreement or Tax Information Exchange Agreement with Ireland).
2. You worked abroad for that employer for at least 6 months before assignment.
3. You weren’t resident in Ireland in the previous 5 years.
4. You commit to at least 12 consecutive months of Irish duties.
5. You earn €100,000+ basic salary (excluding bonuses, equity, and benefits).
6. Your employer files Form SARP 1A within 90 days of arrival.
7. You obtain an Irish PPSN (Personal Public Service Number).

⚠️ Note: Relief does not apply to directors holding >5% company shareholding.

How SARP Relief Is Calculated

Formula:
(A – B) × 30% = Relief

• A = Employment income (salary only, excluding bonuses/equity).
• B = €100,000 (for arrivals post-2023).
• C = €1,000,000 cap (maximum eligible income).

Example 1: Senior Tech Executive

• Base salary: €180,000
• Relief: (€180,000 – €100,000) × 30% = €24,000 excluded from tax.
• Tax saving (at 40% rate): ~€9,600 per year.

Example 2: Pharma Sector Director

• Base salary: €300,000
• Relief: (€300,000 – €100,000) × 30% = €60,000 excluded.
• Tax saving: ~€24,000 per year.

Example 3: High Earner with Cap Applied

• Base salary: €1,200,000
• Relief applies only up to €1,000,000 cap.
• (€1,000,000 – €100,000) × 30% = €270,000 excluded.
• Saving: ~€108,000 per year (for 5 years = €540,000).

Use our SARP Calculator to estimate your tax savings or check out our other tools here.

Additional SARP Benefits

Beyond the core relief, SARP allows:

• One return trip per year for employee and family (employer-paid, tax-free).
• Education allowances of up to €5,000 per child per year (employer-paid, tax-free).

👉 Irish Tax Hub ensures these benefits are structured properly and documented for Revenue.

Common Pitfalls

1. Missed Deadlines: Employer must file Form SARP 1A within 90 days of arrival. Missing it usually kills your claim.
2. Salary Miscalculations: Bonuses, RSUs, and benefits don’t count towards the €100k threshold - only base salary.
3. Residency Missteps: Time spent in Ireland before assignment may break eligibility.
4. Employer Errors: Some HR teams lack Irish tax expertise; we often correct incomplete filings.
5. USC & PRSI Confusion: SARP reduces income tax, but USC and PRSI still apply in full.
6. Multi-country Double Tax Issues: Without careful treaty planning, you risk double taxation.

Frequently Asked Questions

Does SARP reduce USC and PRSI?
No. Relief applies only to income tax, not USC or PRSI.

What happens if I leave Ireland early?
You must work at least 12 consecutive months. Leaving earlier disqualifies you.

Can I claim SARP if I transfer within my own company group?
Yes, if your employer is an associated company in a DTA/TIEA country.

Can SARP be claimed retroactively?
No. Deadlines are strict. Employer filing must occur within 90 days.

Why SARP Matters for Employers

SARP isn’t just a perk for employees - it’s a powerful talent attraction tool for employers. Offering SARP boosts Ireland’s competitiveness against hubs like London, Amsterdam, and Zurich.

At Irish Tax Hub, we partner with HR and mobility teams to:

• Educate relocating staff on their entitlements.
• Prevent filing errors.
• Maximise cost savings for both employee and employer.

Why Choose Irish Tax Hub?

We are Ireland’s leading boutique tax advisory for:

• Expats & assignees relocating under SARP.
• Multinationals managing inbound transfers.
• Executives with complex packages (salary + bonuses + RSUs + relocation benefits).

Our services include:

• Eligibility audits before arrival.
• Employer liaison for eSARP submissions.
• Tax return preparation (Form 11) with SARP optimisation.
• Double taxation relief planning.
• Education & relocation benefit structuring.
• Revenue audit defence.

Clients save not only money but also stress, time, and potential penalties.

Final Thoughts

SARP is one of Ireland’s most powerful tax reliefs for inbound executives - but also one of the least understood. With the right guidance, you could save five to six figures in tax over the course of your assignment.

At Irish Tax Hub, we’ve helped hundreds of assignees and their employers navigate the rules, file correctly, and unlock every euro of relief available.

👉 Contact Irish Tax Hub today for a SARP consultation. Don’t leave thousands of euro on the table - let us make your relocation financially rewarding.