Ten Things Expats Should Know about Irish Tax
It’s been a while since we talked about costs here. But I got another email during the week from someone thinking of living in Ireland and one of the things we talked about was tax. I’ve tried not to think about tax here as I moved back just when the government started piling on income levies and other strange charges. I know, I know; great timing!
These are some of the interesting (ahem, maybe I mean relevant) things I’ve discovered this year:
- The tax year is a calendar year from Jan.1st to December 31st. Logical; thank you!
- Only 183 days of that are counted as making you resident for tax purposes. They have also have a system where if you are resident for 280 days over two years that you pay tax for the second year.
- If you’re resident in Ireland for tax purposes then you need to also pay tax here on any income earned overseas during this time.
- Luckily Ireland has a double-taxation deal with over 40 countries which means you don’t have to stump up in both places.
- You should check the details of this before arriving here as each agreement is different. Don’t just assume your Irish employer’s accountant will understand your personal situation.
- There is another category for people who are ‘ordinarily resident’ here. This is people who stay for three years or less – i.e. most expat contracts. You still need to pay tax on all income earned here and overseas but not on investment properties or on work which is carried out away from Ireland.
- If you are employed by a company here, they take the tax out of your salary for you. It’s called PAYE: Pay As You Earn.
- Self-employed people can choose to pay annually in a lump sum or set up a direct debit payment based on self-assessment.
- EU residents can keep their Personal Tax Credits when you come here if you earn more than 75% of your income in Ireland.
- You can find any other information you need at the Irish Tax website.
Have I missed anything important?