Residency & Domicile

Residency & Domicile

Your liability for tax in Ireland can be affected by whether you are resident, ordinarily resident and whether Irish Domiciled or not.

There is a specific definition of residence and ordinarily residence for tax purposes depending on days you spend in the country and it is relatively easy to establish your residency status.  On the other hand, Domicile is a concept more open to interpretation.

Resident Landlords

If you are resident and domiciled in Ireland for tax purposes, you are chargeable to tax in Ireland on your worldwide income (remitted and not remitted to the State). Worldwide income is the total income that you earn anywhere in the world in a tax year. This is subject to any relief due under the terms of a relevant Double Taxation Agreement.

Non resident Landlords

If you are neither tax resident nor domiciled in Ireland for tax purposes, you are chargeable to tax in Ireland on:

• Irish-source income
• Foreign employment income where the duties of the employment are carried out in Ireland

How to know if you are resident for tax purposes

Your tax residence status depends on the number of days you are present in Ireland during a tax year.
You are resident in Ireland for tax purposes if you are in Ireland for a total of:

• 183 days or more in a tax year

or

• 280 days or more in a tax year plus the previous tax year taken together, with a minimum of 30 days in each year.

You might be non-resident in Ireland for tax purposes, but ordinarily resident and domiciled. This will affect what income is chargeable to Irish tax.

How to know if you are ordinarily resident for tax purposes

If you have been tax resident in Ireland for three consecutive tax years, you become ordinarily resident from the beginning of the fourth tax year.

If you leave Ireland after this time, you continue to be ordinarily resident for three consecutive tax years. For these three years you must pay Irish tax on your worldwide income except for:

•  Income from a trade or profession, no part of which is performed in Ireland
• Income from an office or employment, where all the duties are performed outside Ireland
• Other foreign income, for example, investment income, if it is €3,810 or less. If it is more than €3,810, the full amount is taxable.

What is domicile?

Your domicile affects how foreign-source income is taxed in Ireland.

Domicile is a concept of general law. It broadly means living in a country with the intention of living there permanently. Domicile is a much more permanent concept than residence.

Everyone has a ‘domicile of origin’ at birth (usually the domicile of the father). You keep your domicile of origin unless you choose to gain a new domicile.

To gain a new domicile, you must show clear evidence that you:

• Intend to live permanently in the new country
• Do not intend to return to live in your domicile of origin.

Tax and tax credits for non-residents

If you are non-resident your ordinary residency and domicile will affect how you are taxed.

Ordinarily resident and domiciled in Ireland

You might be non-resident, ordinarily resident and domiciled in Ireland for a tax year. In this case you will pay Irish tax on your worldwide income except:

•  Your foreign income from a trade, profession or employment performed outside of Ireland
• Your foreign investment income if it is less than €3,810.

Non-ordinarily resident and domiciled in Ireland

You might be non-resident, non-ordinarily resident and domiciled in Ireland for a tax year. In this case you will pay Irish tax on:

• Your Irish income and income from a trade, profession or employment performed in Ireland
• Any gains you make in Ireland.

Non-ordinarily resident and not domiciled in Ireland

You might be non-resident, non-ordinarily resident and not domiciled in Ireland for a tax year. In this case you will pay Irish tax on:

• Your Irish income and your income from a trade, profession or employment performed in Ireland
• Any gains on Irish specified assets only (land, buildings, minerals and assets of a trade carried on in Ireland).

Tax credits

European Union (EU) citizens or nationals

If at least 75 percent of your worldwide income is taxable in Ireland, you receive full tax credits on a cumulative basis.

If less than 75 percent of your worldwide income is taxable in Ireland, you may receive a portion of tax credits.

Citizen of a country that has a tax treaty with Ireland

If your only source of income is Irish, you receive full tax credits on a cumulative basis.
If you also have a non-Irish source of income, you may receive a portion of tax credits.

Other non-residents

All other non-residents receive no tax credits.