Relocating to Ireland?

Moving to Ireland as a Secondee: Talk to an expert in Cooney Carey well in advance of your move to ensure that you benefit from relevant tax saving opportunities. Ireland is recognised as having a very favourable corporate tax regime. However tax rates applying to individuals are among the highest in Europe and North America. The marginal rate of income tax currently stands at 40%. However when one includes Pay Related Social Insurance (“PRSI”) if applicable and Universal Social Charge (“USC”) this rate can rise to over 50%. With careful planning exposure to Irish taxation can be minimised. Opportunities include:

• The remittance basis of taxation

An individual who is resident in Ireland but not domiciled in Ireland is liable to Irish income tax in full on his income arising in Ireland, and on “non-Irish income” only to the extent that it is remitted to Ireland. This is known as the remittance basis of taxation. With careful planning it is possible to minimise any Irish tax exposure by controlling the nature of funds introduced into Ireland. The remittance basis of taxation does not apply to income from an office or employment insofar as that income relates to the performance in Ireland of the duties of that office or employment.

• Special Assignee Relief Programme (“SARP”)

SARP provides for income tax relief on a portion of income earned by an employee who is assigned by his or her relevant employer to work in Ireland for that employer or for an associated company in Ireland. Once the qualifying conditions are satisfied, an employee can make a claim to have a portion of his or her earnings from the employment with the relevant employer or with an associated company disregarded for income tax purposes. The portion for 2019 and subsequent years is determined as 30% of employment income between €75,000 and €1,000,000. Income which is disregarded income for income tax purposes is not exempt from USC or PRSI. The relief can be claimed for a maximum period of five consecutive years commencing with the year of first entitlement. In addition, employees who qualify for the relief may also receive, free of tax, certain expenses of travel and certain costs associated with the education of their children in the State. Timing is key – talk to an expert in Cooney Carey well in advance of your move to Ireland. We can work with you to identify an optimum solution to assist you in managing your tax affairs in an efficient manner.

NEXT STEPS

• For expert insight and analysis that is relevant to your own situation talk to Cooney Carey.

• We can create a bespoke tax plan to assist you achieving your objectives in in a tax efficient manner.
• Maximise return – Minimise Tax leakage!