The Tax Benefits of Moving to Ireland

Moving to a new country involves many considerations - from lifestyle and culture to cost of living and taxes. For many international professionals, retirees or high-net‐worth individuals, Ireland offers a compelling combination of lifestyle advantages and favourable tax features. In this guide we’ll explore the major tax benefits of moving to Ireland, who can qualify, what you need to know, and how to plan effectively.

What counts as “moving to Ireland” for tax purposes?

Before diving into reliefs, it’s important to understand a few key terms in Irish tax law: residence, ordinary residence, and domicile. These affect your tax position:

• Residence: Generally, you are resident in Ireland for a tax year if you spend 183 days in the country in the year, or 280 days over the current + previous year, with at least 30 days in each.
• Ordinary residence: Once you have been resident for three consecutive years you become ordinarily resident in the fourth year.
• Domicile: This is your “permanent home” in a legal sense. You might be resident or ordinarily resident in Ireland but may still be non-domiciled if your parents were not born in Ireland and you haven’t established an Irish domicile of choice.
  Understanding domicile is particularly important because some of Ireland’s most favourable tax treatments apply specifically to non-Irish domiciled individuals.

Key Tax Benefits When You Move to Ireland

1. The Remittance Basis for Non-Doms

If you are non-Irish domiciled, Ireland allows you to be taxed on Irish-source income and gains only — meaning you’re taxed only when foreign income/gains are brought (“remitted”) into Ireland.

This “remittance basis” can be highly attractive as you only pay tax on foreign income/gains when you choose to remit them into Ireland, thereby giving you more flexibility in planning.

2. Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) Exposure Is Limited

For non-domiciled individuals, the remittance basis applies to Irish CGT on non-Irish assets. This is important if you have significant overseas investments, inheritances or property interests.

3. Absence of Wealth Tax

Unlike some other jurisdictions, Ireland does not impose a general “wealth tax” on your worldwide assets.
This can make Ireland an attractive destination for high-net-worth individuals who are considering relocation.

4. The Special Assignee Relief Programme (SARP)

If you are a key employee relocating to Ireland under a qualifying assignment, you might be eligible for the Special Assignee Relief Programme (SARP). SARP can reduce income tax on a portion of your remuneration for up to 5 years. If you’re moving for work, this relief can significantly improve your net after-tax income.

Who Qualifies and What Are the Conditions?

To benefit from these reliefs, you’ll want to check:

• Your domicile status: Are you non-Irish domiciled? If your parents were not born in Ireland and you never intended Ireland to be your permanent home, you may qualify.
• Your arrival/residence date: Timing matters. For example, to claim the remittance basis, you need to be tax resident in Ireland and non-domiciled.
• The source of your income/gains: For the remittance basis, non-Irish source income/gains only become taxable when remitted.
• Any specific relief conditions (such as SARP) which might require employer and assignment criteria.
  Because each person’s situation is unique, expert advice is strongly recommended.

Practical Tax-Planning Considerations Before You Move

1. Audit your worldwide assets and income streams: Before relocating, review what income, gains, trusts or overseas assets you hold - and how they might be taxed in Ireland.
2. Consider timing of remittance: If you plan to rely on the remittance basis, the decision of when or whether to bring funds into Ireland is crucial.
3. Estimate your Irish taxes: Use Irish Tax Hub's Salary After Tax Calculator to estimate your obligations once resident.
4. Understand exit or arrival taxes: If you leave your home country, you may face exit-tax or exit-charge rules; likewise arrival in Ireland may trigger tax planning events.
5. Keep detailed records: Documentation of your arrival date, residency status, remittances, and domicile history will be key in the event of an audit.

Lifestyle & Non-Tax Advantages of Moving to Ireland

While the tax benefits are significant, Ireland also offers excellent non-tax advantages for relocating individuals:

• A high quality of life: good education system, English‐speaking environment, vibrant cities (e.g., Galway, Dublin, Cork) plus stunning countryside.
• Strategic location: as an EU member state and English‐speaking country, Ireland offers global connectivity.
• Business-friendly environment: thriving technology, pharmaceuticals, finance sectors, making it attractive for professionals and entrepreneurs.
  When combined with favourable tax treatment for non-doms, Ireland becomes even more compelling as a relocation destination.

Common Pitfalls & How to Avoid Them

• Assuming everything is tax-free: While the remittance basis provides major benefits, it’s not a blanket exemption. Foreign income/gains become taxable when remitted.
• Mis‐judging domicile status: Domicile is a complex concept - incorrectly assuming you’re non domiciled can lead to unexpected tax liabilities.
• Underestimating Irish tax on employment income: If you become resident and work in Ireland, you may be liable to full Irish tax rates, USC and PRSI.
• Failing to consider double-taxation treaties: Ireland has many tax treaties; understanding how they interact with your previous domicile is crucial.
• Neglecting timing: Both the date of becoming resident and the date of remitting funds matter for tax planning.

How to Make a Smooth Transition

• Engage with an Irish tax expert before you move. Early planning can save substantial tax.
• Notify the Revenue (Ireland’s tax authority) of your arrival and establish your residency status.
• Choose a tax year strategy: Irish tax years run from 1 January to 31 December, so moving mid-year may create split-year implications.
• Set up your Irish bank account and track any foreign funds you transfer (“remittances”) to ensure compliance if you’re claiming the remittance basis.
• Review your estate and wealth structuring – particularly if you have trusts, overseas assets or expect inheritances.

Conclusion

Relocating to Ireland can offer a compelling blend of lifestyle benefits and tax-planning opportunities - especially for non-Irish domiciled individuals. By taking advantage of the remittance basis, limited CGT exposure, absence of a wealth tax and relief schemes like SARP, you may significantly optimise your tax affairs. That said, the rules are nuanced and subject to change, so professional advice is indispensable.

If you’re considering making the move to Ireland, or you’ve just arrived and want to understand your tax position, we at Irish Tax Hub are here to help. Contact us for a tailored review of your circumstances and a plan to maximise the tax benefits available to you.