Ireland - residency rules

Ireland has a tax year which is coterminous with the calendar year.

An individual will be resident in Ireland in any given tax year where, either:

1) He is present in the State for 183 days, or more, in that tax year, or

2) He was present in the State for an aggregate of 280 days, or more, in the tax year and preceding tax year, and was present for at least 30 days in the current tax year.

It is, therefore, possible for an individual to spend up to 139 days per tax year in the State without becoming resident.

A day of presence is one in which the individual is in the State at midnight on that day. The availability of accommodation, or otherwise, is not a relevant factor.

An individual will be ordinarily resident in Ireland from the fourth year following three successive years of residence. Ordinary residence status is not then lost until the individual has been non resident for three successive tax years.

An Irish domiciled individual who is resident or ordinarily resident will be subject to Irish tax on his worldwide inome and capital gains. Where such an individual ceases to be resident, the liability to Irish tax will continue for a further three tax years until ordinary residence status has also been lost. In the interim, exceptions are made for earnings from an employment or a trade conducted wholly outside of Ireland.

A non Irish domiciled individual who is resident or ordinarily resident will be subject to Irish tax on his Irish source income and capital gains, and those non Irish sources which are remitted to Ireland. Again, where the individual ceases to be resident, the exposure to Irish taxes continues for a further three tax years until ordinary residence status is also lost.