What You Need to Know About Non-Domiciled Taxation in Ireland

Are you a UK resident considering moving to Ireland? Before making the move, it’s important to understand the Irish taxation system and how it affects non-domiciled taxpayers. Here’s what you need to know about non-domiciled taxation in Ireland.

Tax Residence Status In Ireland

The first step is understanding your tax residence status in Ireland. As a general rule, you are considered an Irish resident for tax purposes if you spend 183 days or more in the country during a 12-month period. The 183 days do not need to be consecutive; rather, they must total at least 183 days within any given 12-month period. This means that UK residents who want to come and live in Ireland must be prepared to stay in the country for at least 183 days a year before being able to take advantage of the Irish taxation system.

Non-Domiciled Taxation Rules

Once you have established your tax residence status in Ireland, you will be subject to Irish non-domiciled taxation rules. Under these rules, non-domiciled taxpayers are only taxed on their Irish income and certain foreign income. This foreign income can include interest earned on overseas investments, rental income from overseas property, income from pensions held overseas and royalties earned from intellectual property located outside of Ireland. Non-domiciled taxpayers are also exempt from paying taxes on some types of capital gains such as profits made from selling shares or other investment assets held overseas.

Tax Relief For Non-Domiciles

In addition to being subject to lower rates of taxes on certain types of incomes and capital gains, there are also several other tax reliefs available for non-domiciles living in Ireland. These include tax rebate schemes for those who make charitable donations as well as deductions for certain medical expenses and contributions towards private pension plans. 

Understanding non-domicile taxation is key when considering relocating from the UK to Ireland. All these factors should be taken into consideration when deciding your move to Ireland. 

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