Income Tax Liability in Ireland: A Guide for Expats

If you are moving to Ireland to live and work you might be wondering if you will have to pay income taxes on money that you make while you are living in Ireland. Whether or not you have to pay income tax in Ireland depends upon your residency status while living there. For Irish tax purposes you are considered a resident if you spend a minimum of 183 days per tax year in Ireland. Or if you spend a minimum of 280 days in Ireland over two consecutive tax years you are considered an Irish resident for tax purposes. If you are in Ireland for 30 days or less in those years then that will not count towards your 280 days.

If you have been considered a resident in Ireland for three consecutive tax years you become what is known as ordinarily resident. And if Ireland is your permanent home then you are considered to be domiciled in Ireland. It should be noted that being domiciled in Ireland is not the same as being a citizen or permanent resident of Ireland.

If you intend to make Ireland your permanent home and remain there indefinitely you can choose to be considered an Irish resident the entire time if it will be to your tax advantage. You will simply need to prove to the Inspector of Taxes that you will be remaining in the country. Since Ireland is a European Union member country, you should know that any time spent in a European Union country will count towards the 183 or 280 day tax liability rule.

If you leave Ireland and are a resident of Ireland and domiciled in Ireland, when you return will be liable for income tax in Ireland on all of your income earned that tax year. If you have spent a total less than 183 days in Ireland the previous year and are not an Irish resident then your income you earned before your return will be exempt from Irish taxes. This only applies to employment income as your non-employment income will be liable to Irish taxes.