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A Guide to Non Domicile Tax in Ireland

Non-domicile tax in Ireland is a complex area of taxation that applies to individuals who are not considered domiciled in Ireland for tax purposes. Domicile is a legal concept that determines an individual's permanent home or the country to which they have the closest connection. If you are a non-domiciled individual in Ireland, you may be able to take advantage of certain tax exemptions and reliefs, which can help reduce your tax liability.


Here are the things you should note as a non-domiciled taxpayer in Ireland:

  1. What is Domicile for Tax Purposes?

Domicile refers to an individual's permanent home, where they have their most significant connections and ties. It's different from residency, which is determined by the amount of time an individual spends in a particular country.

In Ireland, an individual is considered domiciled for tax purposes if they were born in Ireland or have an Irish domicile of origin, or if they have been resident in Ireland for a specified number of years.

  1. How is Non-Domicile Tax Calculated?

Non-domiciled individuals in Ireland are generally taxed on their Irish source income and capital gains, while foreign income and gains are usually exempt from Irish tax. However, the rules surrounding non-domicile tax can be complex and depend on various factors, such as the source and nature of income, residency status, and any applicable tax treaties.

  1. Remittance Basis of Taxation

Non-domiciled individuals in Ireland may be able to opt for the remittance basis of taxation. This means that foreign income and gains are only taxed in Ireland when they are remitted or brought into the country. The remittance basis can be useful for individuals with significant foreign income and gains and can help reduce their Irish tax liability.

It's important to note that the remittance basis of taxation comes with certain conditions and limitations, and it may not always be the most advantageous option. Professional tax advice is essential to determine whether the remittance basis is suitable for your situation.

  1. Double Taxation Relief

Non-domiciled individuals in Ireland may be eligible for double taxation relief if they are taxed on the same income or gains in both Ireland and another country. Ireland has tax treaties with many countries, which can provide relief from double taxation.

It's crucial to understand the provisions of any relevant tax treaties and seek professional advice to ensure compliance with Irish tax laws and optimize your tax position.

In conclusion, non-domicile tax in Ireland can be complex, and it's essential to understand the rules and regulations to ensure compliance and minimize tax liability. Seeking professional advice from qualified tax advisors is highly recommended to determine your tax liability, choose the most advantageous options, and ensure compliance with Irish tax laws.

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Non-Dom taxation guide - Nathan Trust