Coming to Ireland - tax and social insurance
Residence for tax
If you have income from more than one country and move to Ireland, where you pay tax depends on a number of factors:
- Your residence for tax purposes
- Your domicile
Your residence for tax purposes depends on the number of days that you are present in Ireland during a tax year (A tax year runs from 1 January to 31 December). Your domicile is the country where you have your permanent home.
If you are resident for tax purposes but not domiciled in Ireland, you pay Irish tax on your Irish income and any foreign income that you remit to Ireland. You remit income if you send it to Ireland from abroad by wire, mail or online transfer.
If you intend to live in Ireland for the next calendar year, you can request split-year treatment the year you arrive. This means you will be treated as resident in Ireland from the date you arrive.
Double taxation agreement
If your income is taxable in Ireland and in a country that has a double taxation agreement with Ireland, you do not pay tax in both countries on the same income. There is a list of the double taxation agreements on revenue.ie.
Double taxation agreements usually work by either:
- Exempting the income from tax in one of the countries, or
- Allowing credit in one country for the tax paid in the other country on the same income.
The exact treatment of your income will depend on the details of the agreement, the nature and source of your income and, in some cases, on your nationality or citizenship.
Income from a country with no double taxation agreement
If you have income from a country with no double taxation agreement with Ireland, you must pay tax in Ireland on the income minus the foreign tax you paid. There is no credit available for the foreign tax you paid that can be deducted from your Irish tax liability.
Income earned before moving to Ireland
If you are moving to Ireland for the first time or you are an Irish citizen returning to live in Ireland and you were not resident or ordinarily resident when the income was earned:
- You won’t have to pay income tax on income earned before the beginning of the tax year that you become resident in Ireland
- You will have to pay tax on income other than employment income that you get between the beginning of the tax year and the date of your arrival, if the money is brought into Ireland (unless there is a double taxation agreement that allows for a different treatment).
If you are working in Ireland but are paid from abroad
Unless your income is not liable to Irish tax under a double taxation agreement, it will be taxable here from the date you arrive. This is the case even if you are resident for Irish tax purposes.
If you are an Irish citizen who is not ordinarily resident or you are not Irish domiciled, only the foreign employment income (excluding UK sourced income) that you remit to Ireland will be taxable here.
If you are resident for Irish tax purposes in the year that the income is earned, you will be entitled to full personal tax credits and reliefs.
Temporary employment in Ireland
If you are coming to Ireland to take up temporary employment and will not become resident for Irish tax purposes you may be entitled to a proportion of tax credits and reliefs.
These credits are reliefs are available if you are either:
- A non-resident Irish citizen
- A resident or citizen of another EU member state
- A resident or citizen of a country that has a double taxation agreement with Ireland and the agreement covers these allowances.
Your employer will also deduct social insurance contributions, called PRSI (Pay Related Social Insurance), from your pay. They help you to qualify for contributory social welfare payments such as Jobseeker's Benefit, Illness Benefit and State Pension (Contributory).
Your contribution depends on your category as an employee. For example, most employees pay Class A contributions, and how much you pay depends on your earnings.
You need a Personal Public Service Number (PPS number) to work and to register for tax. You can get a PPS number at your local social welfare office or Intreo centre.
You can get more information from Revenue.
You can get more information on PRSI at local Intreo centre or Social Welfare Branch Office.