Navigating the Irish tax system can seem intricate, especially if you’re a non‑EEA national holding a work permit. This guide unpacks how non‑residents, including those on Critical Skills, General Employment, Intra‑Company Transfer, or other permits—are taxed under Irish law. It covers residency rules, tax obligations, advantages for non‑domiciled individuals, reliefs, and how tax treaties affect your liability.
For assistance tailored to your circumstances, head over to Ireland Work Permits or drop a message via contact us.
Tax Residence, Ordinary Residence & Domicile: Why They Matter
Understanding your tax status involves three core concepts:
- Resident: You’re considered tax resident in Ireland if you spend:
- 183 days or more in the tax year, or
- 280 days across the current and preceding year, with at least 30 days in each.
- Ordinarily Resident: A person remains ordinarily resident for tax purposes for three years after ceasing residency.
- Domicile: Reflects your long-term home. If you intend to return to your home country, you may remain non‑domiciled in Ireland.
These three factors determine whether you’re taxed on worldwide income or only income with an Irish connection.
How Tax Laws Apply to Non‑Residents and the Non‑Domiciled
Your tax exposure in Ireland depends on your combination of residence, ordinary residence, and domicile status:
- Non‑resident, non‑ordinarily resident, non‑domiciled – Taxed only on Irish‑sourced income and gains from specified Irish assets.
- Resident but non‑domiciled – Tax applies to Irish‑source income. Foreign income is only taxed if it’s remitted (brought) into Ireland, thanks to the remittance basis.
- Resident and domiciled – Taxed on your worldwide income and gains, though relief may apply under tax treaties.
Spotlight: Non‑Domiciled Tax Regime & Its Benefits
If you’re tax resident but non‑domiciled, you may benefit from the remittance basis:
- Foreign income not brought into Ireland remains untaxed.
- Funds acquired before tax residency can be brought in tax‑free.
- No annual charges apply, unlike in some other countries.
- With many Double Tax Agreements, you can structure affairs to avoid double taxation.
However, avoid common missteps like use of mixed‑fund bank accounts or investments in certain offshore funds—these can trigger tax complications. Legacies and gifts may also attract Capital Acquisitions Tax (33%) after five years of Irish residency.
Tax Triggers: How Much Time in Ireland Matters
If you stay in Ireland:
- Up to 30 days per year is ignored for determining residency.
- More than 183 days in a year, or 280 days over two years, qualifies you as tax resident.
Special rules apply for employees visiting from abroad. If you’re here over 30 days and aren’t tax resident, you may still create a tax obligation—particularly if your country lacks a Double Tax Agreement.
Special Reliefs: SARP & KEEP for Foreign Employees
To attract global talent, Ireland offers targeted tax incentives:
- Special Assignee Relief Programme (SARP)
Applies to inbound employees working in Ireland for at least 12 months, with a base salary of €100,000 or more. Provides relief on 30% of earnings between €100,000 and €1 million. Available up to five years, if not tax resident for the five years prior. - Key Employee Engagement Programme (KEEP)
Replaces income tax with a Capital Gains Tax (33%) on gains from qualifying share options. Available for employees with less than 15% shareholding. Option grants must fall between 2018 and 2025.
These schemes can significantly reduce your effective tax liability.
PAYE, USC & PRSI: Employment Taxes Explained
Regardless of your permit, working in Ireland comes with standard employment taxes:
- PAYE (Pay As You Earn): Income tax deducted by your employer.
- USC (Universal Social Charge): Progressive charge on gross income. Rates range from 0.5% to 11% depending on your income band.
- PRSI (Pay Related Social Insurance): Covers social welfare; deducted as Class A (employees) or Class S (self‑employed), with rates varying by contribution class.
Even if you perform duties partly outside Ireland, tax and USC must be withheld unless revenue issues an exemption (PAYE Exclusion Order).
Capital Gains and Asset Taxation
Capital Gains Tax (CGT) (33%) applies under these conditions:
- Resident and domiciled: Worldwide gains are taxed.
- Resident but non‑domiciled: Only gains remitted to Ireland.
- Non‑resident and non‑domiciled: Gains on Irish assets like property are taxable.
Double taxation relief may apply through tax treaties.
Double Taxation Agreements (DTAs): Why They Matter
DTAs define which country taxes your income, help reduce withholding taxes, and prevent double charges on the same income.
Most DTAs incorporate a 183‑day rule—if you stay in Ireland under that, your home country may retain taxing rights. These treaties bring clarity and peace of mind.
Summary: Taxation Overview for Permit Holders
| Situation | Tax Liability | Key Notes |
| Non‑resident, non‑domiciled | Irish income and Irish gains only | Ideal for short stays or remote work assignments |
| Resident, non‑domiciled (remittance basis) | Irish income and remitted foreign income | Offers tax planning flexibility |
| Resident, domiciled | Worldwide income and gains taxed | Standard approach for long‑term residents |
| SARP‑eligible | Tax relief on 30% of salary above €100k | Significant advantage for high earners |
| KEEP‑eligible | CGT on qualifying share gains | Favourable for equity‑compensated roles |
| Work partly outside Ireland | PAYE/USC on Irish‑performed duties | Exemptions available via PAYE Exclusion Order |
| Capital Gains (non‑resident) | Tax on Irish‑sourced asset gains | CGT rate: 33% |
| Covered by DTA | Relief from double taxation | Consult specific DTA terms |
Final Thoughts
Ireland’s tax framework combines clarity with flexibility. As a non‑Irish work permit holder, your tax exposure depends on how you structure your residency, domicile status, and employment. Leverage incentives such as SARP or KEEP when eligible. Be mindful of how and when foreign income enters Ireland, and always check for relevant tax treaties.
For tailored guidance, including residency determinations, tax filings, and relief applications, reach out via Ireland Work Permits or use the contact page. Our experts can help you optimise your tax position while ensuring full compliance.
