The Remittance Basis of Tax in Ireland 2025

Ireland is well known for its attractive tax regime for individuals who are resident but not domiciled here. The jewel in the crown of this system is the remittance basis of taxation. If managed correctly, it allows foreign income and gains to escape Irish taxation altogether - so long as they are not brought into the State.

This opportunity makes Ireland especially attractive for expats, high-net-worth individuals, internationally mobile executives, and returning Irish nationals who maintain a non-Irish domicile.

But while the remittance basis seems simple on paper, in practice it is full of nuances, traps, and grey areas. At Irish Tax Hub, we help clients navigate these complexities, structure their finances correctly, and maximise the benefits of this regime - without falling foul of Revenue rules.

What Does the Remittance Basis Mean?

The remittance basis is a special method of taxation available to individuals who:

1. Are tax resident in Ireland, and
2. Are non-domiciled in Ireland.

Instead of being taxed on worldwide income and capital gains (the arising basis), non-doms are only taxed on:

• All Irish-source income and gains, and
• Foreign income and gains only if they are remitted (brought) into Ireland.

This distinction is critical. It means if you earn €500,000 in dividends from overseas investments and leave the money offshore, Revenue generally cannot tax it. If you remit €100,000 of that income into Ireland to buy property or fund living expenses, then only that €100,000 becomes taxable here.

The Difference Between Arising Basis and Remittance Basis

For most Irish-domiciled residents, tax applies on the arising basis: every cent of global income is taxable in Ireland, regardless of where it is earned or kept.

The remittance basis is different - it focuses only on what is physically or constructively brought into Ireland.

• On arising basis: €1m earned abroad → all taxed in Ireland.
• On remittance basis: €1m earned abroad → €0 taxed if kept offshore; only the remitted portion taxed if brought in.

This is a game-changer for individuals with significant international wealth.

Who Qualifies?

To qualify for the remittance basis, you must establish that you are not domiciled in Ireland. Domicile is not the same as residency. It is a complex legal concept linked to your permanent home and long-term intentions.

For example:

• An American working in Dublin who intends to eventually return to the US is likely to be US-domiciled and can claim the remittance basis.
• An Irish-born person who emigrated to London but returns permanently to Ireland may be treated as Irish-domiciled, unless very strong evidence shows they intend to live permanently elsewhere.

Irish Tax Hub frequently advises clients on domicile status, which can be nuanced and fact-dependent.

Income and Gains Covered

The remittance basis applies to most categories of foreign income and capital gains, including:

• Dividends from overseas companies.
• Rental income from property abroad.
• Employment income relating to work performed abroad.
• Capital gains on foreign shares, bonds, or assets.

But there are important limitations:

• Income from work performed in Ireland is fully taxable, even if paid abroad.
• Irish-source income (such as Irish dividends or rental income) is always taxable here.
• Certain anti-avoidance rules prevent manipulation of the system through artificial arrangements.

Common Triggers of a Remittance

One of the most misunderstood aspects of the regime is what actually counts as a remittance. It’s not just physically wiring money into an Irish bank account. Revenue takes a broad view.

A remittance can include:

• Paying Irish expenses (rent, school fees, utilities) with offshore income.
• Using a foreign credit card in Ireland and settling it with offshore funds.
• Withdrawing cash in Ireland from a foreign bank account.
• Bringing in foreign assets purchased with offshore income (e.g. shipping artwork or jewellery).
• Paying off Irish loans using overseas accounts.

This is why professional structuring is essential. Irish Tax Hub helps clients design banking strategies - often with separate clean capital accounts, income accounts, and gains accounts - to ensure remittances are properly tracked and minimised.

Practical Examples

Example 1: The Consultant with Global Clients

Maria is a Spanish consultant working in Dublin. She earns €200,000 from Irish clients (fully taxable) and €300,000 from clients in Spain. She keeps the Spanish income in a Spanish bank account, only remitting €50,000 a year to cover rent and living costs in Ireland.

• Irish income: fully taxable.
• Foreign income remitted: €50,000 taxable.
• Foreign income left offshore: €250,000 not taxed in Ireland.

Maria uses Irish Tax Hub to ensure she has clear records showing the €250,000 remains abroad.

Example 2: The Executive with Mixed Funds

John, a US citizen, keeps both US salary and Irish rental income in the same offshore account. Later, he wires €100,000 to his Irish account. Because the funds are mixed, Revenue may treat the transfer as partly consisting of taxable Irish income - even if John intended only to remit US funds.

This is a classic pitfall. At Irish Tax Hub, we would advise John to set up ring-fenced accounts to protect against “mixed fund” problems.

Example 3: The Returning Emigrant

Sarah, Irish-born, spent 20 years working in Hong Kong. She moves back to Ireland but intends to retire abroad in Spain later. Whether she is still non-domiciled depends on the evidence of her long-term intention. If Revenue views her as Irish-domiciled, she loses access to the remittance basis.

This grey area shows why professional advice is essential.

Edge Cases and Specialist Considerations

• Split-Year Relief: If you move to Ireland partway through the year, you may qualify for split-year treatment on your employment income, which interacts with the remittance basis.
• Double Tax Treaties (DTAs): Ireland has treaties with many countries that interact with the remittance basis. Proper application avoids double taxation.
• Capital Gains Tax (CGT): Foreign capital gains are only taxed when remitted, but anti-avoidance rules exist around reinvesting or remitting in disguised forms.
• Use of Offshore Trusts or Companies: Structures can complicate whether funds are considered remitted. These require careful planning.
• Family Remittances: If a spouse or dependent uses offshore income in Ireland, it may be deemed a remittance by the taxpayer.

Why Work with Irish Tax Hub?

The remittance basis can save tens or even hundreds of thousands of euro annually, but only if used correctly. Small mistakes - like paying an Irish bill with the wrong credit card - can trigger unintended tax bills.

At Irish Tax Hub, we provide:

• Residency and domicile assessments to confirm eligibility.
• Strategic planning to maximise the benefit of keeping funds offshore.
• Banking and account structuring to avoid mixed-fund pitfalls.
• Clear compliance with Revenue, minimising audit risk.
• International coordination, particularly for US citizens and dual-jurisdiction taxpayers.
• Ongoing reviews as your personal circumstances change.

Many of our clients first contact us after hearing horror stories from peers who mishandled remittances. Our role is to give you certainty, efficiency, and peace of mind.

Final Thoughts

The remittance basis of tax is one of Ireland’s most attractive features for internationally mobile individuals. It offers flexibility, efficiency, and the chance to protect foreign wealth from Irish taxation. But the rules are complex, the pitfalls are many, and the consequences of mistakes can be expensive.

That’s why working with a specialist like Irish Tax Hub is essential. We combine deep technical expertise with practical experience advising non-doms across industries, nationalities, and wealth levels.

👉 Contact Irish Tax Hub today for a tailored review of your tax position. We’ll ensure you enjoy the benefits of Ireland’s remittance basis—while avoiding the traps that catch so many others.