Returning to Ireland can be stressful. We can assist in making your move home easier and with little worry.
Services Provided
Benefits of Working With Us
- Tax Residency and Compliance: Assistance in determining tax residency status under Irish law. Guidance on re-establishing tax residency status and understanding related obligations. Advice on the implications of previous non-residency and how it affects current tax responsibilities
- Income Tax Compliance: Assistance with reporting worldwide income, including foreign earnings and investments. Preparation and filing of Irish tax returns, ensuring all income and deductions are correctly reported.
- Expense Deductions and Tax Reliefs: Identification and documentation of allowable deductions such as relocation, housing, and education expenses. Assistance with claiming specific tax reliefs available to returning emigrants e.g. Special Assignee Relief Program.
- Split Year Treatment: Advice on split year treatment if they return partway through the year.
- Double Tax Treaties: Review of applicable double tax treaties between Ireland and their previous country.
- Registration with Revenue: Assistance with registering with the Irish Revenue Commissioners.
- Filing Tax Returns: Preparation and filing of Irish income tax returns.
- PAYE System: Guidance on the Pay-As-You-Earn (PAYE) system for salaried income.
- Foreign Income Reporting: Assistance with reporting foreign income and understanding the tax implications.
- Capital Gains Tax: Guidance on capital gains tax liabilities in Ireland and any reliefs available.
- Social Security Contributions: Assistance with understanding Irish social security contributions and any agreements between Ireland and their previous country.
- Pension Planning: Advice on pension schemes and contributions in Ireland.
- Inheritance and Gift Tax: Guidance on inheritance tax (CAT) and gift tax implications in Ireland.
- Wealth and Estate Planning: Assistance with estate planning to ensure efficient transfer of assets from previous country.
- International Considerations: Assistance with managing tax obligations and currency exchange issues related to income or investments received in different currencies.
- Tax Updates: Regular updates on changes to Irish tax laws that might affect their situation.
- Personalized Tax Planning: Ongoing personalized tax planning and advice.
- Expertise in Expat Taxes: Specialised knowledge in handling tax issues for expats.
- Personalised Advice: Tailored tax strategies to optimise your financial situation.
- Comprehensive Support: From filing returns to planning future tax obligations.
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How It Works
Common Challenges Addressed
- Initial Consultation: Discuss your specific needs and circumstances.
- Assessment: Evaluate your tax status and obligations.
- Strategy Development: Create a tailored tax plan.
- Implementation: Assist with filing and compliance.
- Ongoing Support: Provide continuous advice and updates on tax laws.
- Understanding and Complying with Tax Obligations: Ensuring accurate reporting of worldwide income and claiming appropriate deductions.
- Re-establishing Financial Footing: Managing the transition from foreign financial systems to the Irish system. Ensuring compliance with Irish Revenue requirements.
- Pension and Retirement Planning: Integrating foreign pension plans with Irish retirement savings, where possible. Understanding the tax implications of pension plans in different countries.
- Wealth and Estate Planning: Planning for efficient transfer of assets. Minimising exposure to inheritance tax and other related costs.
Frequently Asked Questions
How do I determine my tax residency status?
Your tax residency status in Ireland is determined based on 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.
What are the applicable tax rates for employment income, foreign earnings, and investments?
Employment Income:
20% on the first €42,000 of taxable income.
40% on income above €42,000.
Universal Social Charge (USC): The rates are 0.5%, 2%, 4.5%, and 8%, depending on the income.
Pay Related Social Insurance (PRSI):
Class A PRSI at 4% on all income over €5,000 annually.
Foreign Earnings:
Foreign income is taxed similarly to domestic income but may be eligible for relief under double taxation agreements (DTAs).
Investment Income:
Dividends are generally taxed at the same rates as other income.
Interest is taxed at 33% plus PRSI of 4%.
Income/gains for overseas investments may be taxed at higher rates of 41/52/55%.
Capital gains are taxed at 33%.
Am I eligible for Split Year Treatment?
Yes, you may be eligible for Split Year Treatment in the year of your arrival. This treatment allows your foreign employment income earned before becoming resident to be excluded from Irish tax.
To qualify:
Arrive During the Year: You must become tax resident in Ireland during the year and intend to be resident the following year.
Non-Resident for Previous Year: You must have been non-resident in Ireland for the entire previous tax year.
You can apply for Split Year Treatment when filing your tax return. However we recommend lodging the application for same in the year of arrival (before 31 December).
What documentation is needed to claim relief under double taxation agreements?
To claim relief under double taxation agreements (DTAs):
Proof of Foreign Tax Paid: Provide documentation such as tax assessments, tax returns, and receipts from the foreign tax authority.
Residency Certificates: Obtain a certificate of residence from the foreign country to confirm your tax residency status there.
DTA Reference: Reference the specific articles of the relevant DTA that apply to your situation if required.
Form 12 or Form 11: Use these forms to declare foreign income and claim double taxation relief when filing your Irish tax return.
Can I deduct relocation expenses, housing costs, and education expenses from my income?
Relocation Expenses: Generally, relocation expenses are not deductible for tax purposes unless reimbursed by an employer as part of a relocation package, in which case specific tax reliefs may apply.
Housing Costs: The Help to Buy scheme can offer tax refunds if specific criteria are satisfied.
Education Expenses: Tuition fees for approved courses at approved institutions may qualify for tax relief, subject to limits and conditions.
Do I need to report my worldwide income?
Yes, as a tax resident in Ireland, you must report your worldwide income.
This includes:
Employment Income: Both domestic and foreign.
Investment Income: Dividends, interest, and rental income from foreign properties.
Other Income: Any other sources of income earned abroad.
What are the tax implications of buying property in Ireland?
When buying property in Ireland, you should be aware of the following tax implications:
Stamp Duty: Payable on the purchase of property. Rates are 1% on the first €1 million of residential property and 2% on the excess. Commercial property rates are higher.
Local Property Tax (LPT): An annual tax based on the market value of the property.
Capital Gains Tax (CGT): If you sell the property, any gain is subject to CGT at 33%.
Rental Income: If you rent out the property, rental income is usually subject to income tax, USC, and PRSI.
How will my restricted stock units (RSUs) and stock options be taxed in Ireland?
Restricted Stock Units (RSUs):
Taxable Event: RSUs are taxed when they vest (i.e., when you gain full ownership and control of the shares), via payroll under PAYE deduction at source.
Income Tax: The market value of the shares at vesting is subject to income tax at your marginal rate.
USC and PRSI: RSU income is also subject to USC and PRSI.
Capital Gains Tax (CGT): Upon sale of the shares, any gain is subject to CGT at 33%. The gain is calculated based on the difference between the sale price and the market value at vesting.
Stock Options:
Grant: Generally not a taxable event.
Exercise: The difference between the market value at exercise and the exercise price is subject to income tax, USC, and PRSI.
CGT: Upon sale of the shares, any gain from the sale is subject to CGT at 33%. The gain is calculated based on the difference between the sale price and the market value at exercise.
