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If you are working remotely in Ireland for an overseas employer or you have gone overseas to work remotely for an Irish employer and you need tax advice, we can assist.
In most Remote Worker cases, we recommend a 30-minute consultation, where we’ll map out your next steps together. If you are unsure and would like to confirm the most appropriate consult to book please reach out to our Client Service Manager at info@expattaxes.ie).
Read our customer story on how we helped a remote worker clarify their tax position.
Your tax residency status in Ireland is determined by the number of days you spend in the country:
183 Days Rule: You are considered tax resident if you spend 183 days or more in Ireland in a tax year.
280 Days Rule: You are also considered tax resident if you spend a combined total of 280 days or more in Ireland over two consecutive tax years, with at least 30 days in each year.
Ordinarily Resident: If you have been resident in Ireland for three consecutive tax years, you become ordinarily resident from the start of the fourth year and remain so until you have been non-resident for three consecutive tax years.
As a remote worker or freelancer in Ireland, you are liable for the following taxes:
Income Tax: 20% on the first €42,000 of taxable income. 40% on income above €42,000.
Universal Social Charge (USC): USC is also applicable on rental income. The rates are 0.5%, 2%, 4.5%, and 8%, depending on the amount of income.
Pay Related Social Insurance (PRSI): Class S PRSI at 4% on all self-employment income over €5,000 annually.
Yes, you can deduct certain expenses from your taxable income as a remote worker or freelancer:
Home Office Expenses:
A portion of your home expenses, such as rent, mortgage interest, utilities, and broadband, proportional to the space used for work if you incur these costs personally.
A daily flat rate allowance of €3.20 per day can be paid tax-free by your employer if you are required to work from home.
Travel Costs:
Business-related travel expenses, but not commuting costs. Travel between home and your usual place of work is not tax deductible.
Keep detailed records and receipts for all deductible expenses and ensure they are solely for business use. Get the advice of a qualified tax adviser if in doubt.
Working remotely from different countries can have several implications:
Tax Residency: You may become tax resident in another country, leading to dual residency and potential double taxation issues.
Tax Treaties: Double taxation agreements (DTAs) between Ireland and other countries can help mitigate double taxation.
Social Security: Social security obligations may vary, and you may need to pay contributions in the country where you work.
Compliance: Ensure compliance with local tax laws, work permits, and employment regulations in the host country.
Taxes and regulations for remote work across borders include:
Income Tax: You may be liable for income tax in both Ireland and the host country. DTAs can provide relief.
Social Security: Contributions may be required in the host country. The EU regulations or bilateral agreements may determine which country’s social security system applies.
Permanent Establishment: If you are an employee, your presence in another country could create a permanent establishment for your employer, leading to corporate tax obligations.
Work Permits and Visas: Ensure you have the necessary permissions to work remotely in the host country.
As a remote worker or freelancer in Ireland, you are liable for:
Income Tax: As detailed above.
Universal Social Charge (USC): As detailed above.
Pay Related Social Insurance (PRSI): Class S PRSI at 4% on self-employment income over €5,000 annually.
Value Added Tax (VAT): Generally, Iif your turnover exceeds the VAT threshold (€40,000 for services or €80,000 for goods), you must register for and charge VAT.
To register with the Irish Revenue Commissioners:
ROS Registration: Register for the Revenue Online Service (ROS) on the Revenue website.
Tax Registration: Complete the TR1 (for sole traders) or TR2 (for partnerships or companies) form to register for income tax, PRSI, and VAT (if applicable).
Business Registration: If applicable, register your business name with the Companies Registration Office (CRO).
The process for filing income tax returns is as follows:
Self-Assessment: As a freelancer, you must file an annual self-assessment tax return (Form 11) by October 31st of the following year (or mid-November if using ROS). Remote workers taxed under the Irish PAYE system can claim additional credits/reliefs using myaccount (the online system).
Preliminary Tax: Pay preliminary tax for the current tax year by the same deadline.
Calculate Tax Liability: Calculate your total income, deductible expenses, and tax liability.
USC and PRSI: Include USC and PRSI calculations in your return.
Submit Return: File your return and make any payments due via ROS.
If you are working remotely in Ireland for an overseas employer or you have gone overseas to work remotely for an Irish employer and you need tax advice, we can assist.
We can advise on:
We offer a tax consult specifically designed to address the tax & social security issues faced by remote workers. A booking can be made via the link below.
Read our customer story on how we helped a remote worker clarify their tax position.
