Ireland’s Non-Dom Tax Program

Ireland offers a potential solution to High Net Worth Individuals who are looking for an attractive place to live and to benefit from clear tax rules that will assist them in managing their wealth and annual income. The Irish rules regarding residence and domicile are similar to, yet far simpler than, many other jurisdictions, including the UK and US. 

What is Ireland’s Non-Dom Residence Tax Program? 

The Non-Dom Taxpayers Program is a tax regime in Ireland designed to attract high net worth individuals (HNWIs). Ireland has the concept of domicile as well as residence which can be used to reduce an individual’s tax liability. Broadly speaking, a non-domiciled Irish tax resident individual is subject to tax on income from Irish sources only. Foreign income and gains are only taxable to the extent of amounts that are actually remitted in Ireland.

Who can apply to the Irish Non-Dom Residence Tax Program? 

The Irish Non-Dom Residence Tax Program is available to Non-Irish nationals relocating to Ireland. These individuals need to remove themselves from their existing tax regime and adopt Irish residence.

In many cases, Ireland’s network of double tax treaties give exclusive taxing rights to Ireland when an individual can show he spends more than six months per annum in Ireland and/or demonstrates that Ireland is where their economic interests are. Ireland’s double tax treaties typically protect the applicants tax-free income and some additional gains of a non-domiciliary.

Can an IIP Resident apply to Ireland’s Non-Dom Residence Tax Program? 

Yes, individuals who have invested in the Ireland Investor Program (IIP) can apply to Ireland’s Non-Dom program. These persons do need to follow the guidelines and requirements as per the program.  Because of the physical presence requirements, applicants need to have a proof of residence. 

What are the benefits of the Irish Non-Dom Residence Tax Program? 

As an individual in Ireland for tax purposes but that is not domiciled in Ireland, will only be taxed on their Irish-sourced income and gains if your worldwide earnings is less than €1m. However, if they bring their foreign income or gains into Ireland, they will be subject to Irish tax on those amounts. 

This allows individuals to not be taxed on any gains or income that is earned outside of Ireland as long as they do not bring the money into Ireland. Remittance brought into Ireland will be taxed at the normal tax rates, this includes any remittance from credit card use in Ireland. There is no Levy for Non-Dom tax people in Ireland unlike other programs in Europe. 

One of the most attractive criteria for Ireland’s Non-Dom taxation program is that there is no limit on the number of years that someone can use the tax program. 

What is the process for applying to Ireland’s Non-Dom Residence Tax Program? 

There is no formal application to the Irish Revenue Commissioners to be accepted as a Non-Dom person in Ireland. However you need to provide documentation to the Revenue Commission with a letter of residence, days present in Ireland and income that you have remitted in Ireland.  

Each case is individually reviewed and approved by the Commissioners Office. It is best that a tax professional assist in the preparation of submitting annual submissions. 

Can a person apply to Ireland’s Non-Dom Residence Tax Program before gaining a residence permit? 

No, an individual cannot apply for non-dom status in Ireland before taking up residence in the country as the program is viewed retroactively. An individual would need to carefully consider the steps required both to break their existing residence and to become an Irish resident. 

There is also important pre-entry tax structuring such as establishing segregated bank accounts. This would be undertaken to ensure that income and gains realised before an individual moves to Ireland can be remitted to Ireland tax efficiently once they become Irish resident.

How can I learn more about Ireland’s Non-Dom Residence Tax Program?

To gain a comprehensive understanding of Non-Dom taxation, consider booking a consultation with the knowledgeable team at MOVEANYWHERE. With extensive experience in helping clients with Non-Dom status across various European nations, they will provide you with a thorough overview of the program.

At MOVEANYWHERE, the team will evaluate your specific situation, considering factors such as your current tax obligation, sources of income, assets, potential tax responsibilities, family composition, and potential tax advantages, to find the optimal solution for you. Don’t hesitate to reach out to us today to take advantage of our expertise.