Non Domiciled Tax on Earned Income

As a non-domiciled resident in Ireland, your tax liability on earned income will depend on your tax residency status and the source of your income. If you are a tax resident in Ireland, you will be liable to pay Irish tax on your worldwide income, including any income earned in Ireland or abroad. However, if you are not a tax resident in Ireland, you will only be liable to pay Irish tax on income earned in Ireland.

Non-domiciled residents may also be eligible for certain tax reliefs and exemptions, depending on their circumstances. For example, you may be eligible for the remittance basis of taxation, which allows you to only pay tax on income remitted to Ireland from abroad. This can be particularly beneficial if you have significant foreign income, as it may reduce your overall tax liability.

To qualify for the remittance basis of taxation, you must meet certain conditions. Firstly, you must be resident in Ireland for fewer than 183 days in a tax year. Additionally, you must not have been resident in Ireland for the previous three tax years. 

It's important to note that while the remittance basis of taxation can be beneficial for non-domiciled residents, it may not always be the best option. For example, if you have significant Irish income, it may be more tax-efficient to pay tax on your worldwide income rather than just the income remitted to Ireland. It's important to weigh up the pros and cons of each option and seek professional tax advice to determine the best course of action for your circumstances.

In conclusion, non-domiciled residents in Ireland may have different tax liabilities on their earned income depending on their tax residency status and the source of their income. While the remittance basis of taxation can be a beneficial option for reducing your tax liability, it's important to consider all factors and seek professional tax advice to ensure you are compliant with all relevant tax laws and regulations.

If you would like to discuss your situation in more detail, please contact us in the form below.