Irish income and capital gains tax is based on the tax residence of the taxpayer. Ireland has two residence concepts:
- tax residence; and
- ordinary residence.
A taxpayer will cease tax residency usually within a year of leaving Ireland (if not earlier). However it takes three years to lose ‘ordinary residence’ and this may mean that Irish income remains taxable in Ireland if relief under a Double Tax Agreement is not available.
We can assist with clarifying how your residency position impacts your liability to Irish taxes specifically with reference to ordinary residence and its interaction with residency in your new location.