The term tax resident can be confusing. It doesn’t mean you are physically present in Ireland, nor does it mean that you live here year-round. Being an Irish tax resident simply means that you are liable for taxes on your worldwide income and capital gains relating to your residency status here in Ireland.
How do I know if I am Irish tax resident?
Tax residency is the main condition for being taxed in Ireland. Then you should check with income protection tax relief If you are an Irish tax resident, you will be liable to pay Irish income tax on any income from sources within or outside Ireland that have not been taxed elsewhere.
You are a non-resident of Ireland if:
- You spend less than 183 days in Ireland in a tax year (1st January to 31st December). This includes spending time here as a tourist or visiting relative
- Your permanent home is outside the state – this means your address where you live and/or keep most of your belongings. It can be anywhere in the world including another country or province within Europe such as France, Italy or Spain
What is Irish tax residence status?
- Irish tax residence status is determined by the Irish Revenue Commissioners and can be confusing for U.S. citizens who are not familiar with Irish rules on residency.
- To qualify for exemption from Irish taxation, you must satisfy one of two tests:
- You spend 183 days or more in Ireland during a tax year, or
- You live in Ireland for at least 183 days and earn at least €60,000 (about $72,000) from all sources during that time period
What are the criteria for being a tax resident in Ireland?
In general terms, you can be considered a tax resident in Ireland if you satisfy one of the following criteria:
- The 183-day rule: You must have been physically present in Ireland for at least 180 days during the tax year. This means that your stay in Ireland must be longer than 6 months and shorter than 9 months (which is roughly 1/8th of the year).
- Presence test: You must spend at least 730 days out of every two years in Ireland to qualify as a tax resident under this test. In other words, if you are away from home for more than 20% of any 12-month period over 2 years, then you cannot be considered a tax resident under this test. In applying this rule, the time spent outside Ireland will count against your total period spent there during those 2 years; however, time spent working abroad will not count against this total unless it was done through an Irish company or organization operating internationally. For example: If I work at an American company’s offices outside America for 6 months and then return home for another 3 months before heading back overseas again for another 5 months, my total number of days (or nights) abroad would be just over ½ year – which would mean that I could not avail myself of being deemed “tax resident” under their presence test because they require 730 days out every two years instead!
Can I be non-resident here but tax resident abroad?
Yes, you can be tax resident in Ireland and non-resident elsewhere. If you are an Irish national living abroad and your permanent home is outside Ireland, then you will not be considered resident here for tax purposes. However, if you spend more than 183 days per year living in Ireland as a temporary visitor, or are working here for longer than 91 days (on average) during any period of 12 months from April to March, your residency status may change to ‘habitual residence’. This means that all income earned from activities carried out within the State such as employment earnings will be taxed in Ireland rather than where they were earned.
What is my tax residence status if I have moved to Ireland recently?
If you have moved to Ireland recently, then you are likely to be considered tax resident in Ireland for at least one year. For your help we have income protection tax relief
The tax law defines a person who is tax resident in Ireland as someone who is present in Ireland for 183 days or more in a tax year. If you do not fulfill this requirement, then you will be considered non-resident for that particular year.
What if I have been here less than 183 days in the last 12 months?
If you have been here for less than 183 days in the last 12 months, then you are not considered tax resident. This means that any income earned abroad is not taxable in Ireland. Such income may be subject to taxation elsewhere though, so there may be double taxation issues.
You should bear in mind, however, that if your home country does not have a Double Taxation Agreement with Ireland then this could lead to double taxation and tax credit issues for you.
How do I become non-resident for Irish tax purposes?
You can become a non-resident for Irish tax purposes by moving to another country. If you are a non-resident for Irish tax purposes, you will not be liable to pay tax on your income from Ireland. However, additional taxes may be applicable in the other country where you are now resident.
If you have changed your residence and want to know if you need to file a new tax return in Ireland because of it, please contact us and we will advise you on what action is required.
There are different ways to be deemed tax-resident in Ireland. Understanding your particular situation will help you understand how much income you need to declare and how much you need to pay.
There are different ways to be deemed tax-resident in Ireland, and understanding your particular situation will help you understand how much income you need to declare and how much you need to pay.
In this guide, we’ll cover what it means for a nonresident alien (NRA) or non-habitual resident (NHR) individual to be deemed tax-resident in Ireland. We’ll also discuss the circumstances under which an NRA or NHR may obtain an Irish tax number so they can file their taxes through Revenue Online.
Conclusion
There are many factors that go into determining your tax residence status in Ireland. Understanding how these factors affect you will help you plan your taxes and stay on top of what you owe.
