Home 5 Immigration in Ireland 5 Ireland’s Non-Domiciled Tax Regime

Ireland’s Non-Domiciled Tax Regime

Ireland’s Non-Domiciled Tax Regime provides favorable tax treatment for individuals who are Irish tax residents but retain their domicile status outside Ireland. This guide outlines the benefits of Ireland’s non-domiciled tax regime and its relevance for eligible participants.

Non-Domiciled Status in Ireland

Under Ireland’s non-domiciled tax regime, individuals who are tax residents but not domiciled in Ireland can benefit from preferential tax treatment.

  • Domicile Status: Domicile is determined by factors such as an individual’s country of origin, parental domicile, and intention to reside permanently in Ireland.
  • Tax Residency: Tax residency is based on the number of days spent in Ireland during a tax year, typically 183 days or more.

Tax Treatment of Foreign Income

Non-domiciled individuals are taxed on:

  • Irish Income: Taxed fully at standard Irish income tax rates.
  • Foreign Income and Gains: Only taxed on a remittance basis, meaning income and gains brought into Ireland are subject to Irish tax, while income and gains retained offshore are not taxed.

This feature makes Ireland’s regime highly attractive to individuals with substantial offshore income or assets.

Remittance Basis of Taxation

Non-domiciled individuals can opt for the remittance basis of taxation, which allows:

  • Tax deferral on foreign income and gains not remitted to Ireland.
  • Strategic management of tax liabilities by controlling the timing and amount of funds brought into Ireland.

Tax Planning Opportunities

Ireland’s non-domiciled tax regime offers numerous tax planning opportunities, including:

  • Offshore Investments: Maintain offshore accounts and investments without Irish tax exposure, provided income and gains are not remitted.
  • Offshore Trusts: Establish offshore trusts for asset protection and tax-efficient wealth management.
  • International Structuring: Optimise global wealth and income structures for tax efficiency.

Additional Considerations

  • Tax Compliance: Non-domiciled individuals must ensure accurate reporting of remitted funds and adhere to Irish tax regulations.
  • Double Taxation Relief: Ireland’s extensive network of double taxation treaties can provide relief for foreign taxes paid on income or gains.

Professional Advice

Navigating Ireland’s non-domiciled tax regime requires expert knowledge of Irish and international tax laws. Engaging a qualified tax advisor is essential to:

  • Develop tax-efficient strategies tailored to individual circumstances.
  • Ensure compliance with Irish tax rules while optimizing global wealth management.
  • Maximise the benefits of the non-domiciled tax regime.

Get in Touch

Ireland’s non-domiciled tax regime offers significant advantages for internationally mobile individuals and those with offshore income or assets. Contact us today for expert advice on how to leverage this regime to your benefit.

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