Returning to Ireland – Tax on foreign employment income
Here's what you need to know about returning to Ireland.
Tax is always a major concern for ex-pats thinking of returning to Ireland. In a special holiday season series, our tax department are sharing some of the common questions that we are frequently asked from people who are looking to return home.
Question: I’m planning on returning to Ireland midway through 2019. Will my foreign employment income be taxable in Ireland?
You will be taxable in Ireland on your worldwide income and gains if you are Irish tax resident in 2019. Broadly speaking, an individual will be Irish tax resident if they spend in excess of 183 days in Ireland during the tax year. However, it is possible to avail of a tax relief called “split-year treatment” for the year you return to Ireland.
The relief works such that any foreign employment income you earned before returning to Ireland and becoming tax resident again, is not subject to Irish tax. An application must be made to Revenue for this treatment to apply.
Another benefit of this relief is that you will still be able to benefit from a full year’s worth of Irish tax credits and tax bands in the year you return, provided you are Irish tax resident, even though you might only be returning halfway through the tax year.
If you have any questions about returning to Ireland or any other personal tax issues, please contact a member of our tax team.
