Verified Facts
Ireland's tax system is a combination of territorial and worldwide taxation, with tax rates ranging from 20% to 40% for personal income tax, 12.5% for corporate tax, and 23% for value-added tax (VAT), with various deductions, allowances, and exemptions available for residents and non-residents alike.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Ireland's tax system is based on a combination of territorial and worldwide taxation, meaning that residents are taxed on their worldwide income, while non-residents are taxed only on their Irish-sourced income. The residency rules for tax purposes in Ireland are based on the number of days spent in the country, with individuals who spend 183 days or more in Ireland in a tax year considered resident for tax purposes. Additionally, individuals who spend 280 days or more in Ireland over a two-year period, with at least 30 days in the current tax year, are also considered resident.
The tax system in Ireland is administered by the Revenue Commissioners, which is responsible for collecting taxes, as well as providing guidance and support to taxpayers. Ireland has a well-developed tax treaty network, with agreements in place with over 70 countries, aimed at preventing double taxation and promoting international trade and investment. The tax year in Ireland runs from January to December, and taxpayers are required to file their tax returns by October 31st of the following year.
Personal Income Tax
| Income Bracket (EUR) | Tax Rate |
|---|---|
| 0 - 35,400 | 20% |
| 35,401 - 70,000 | 40% |
| 70,001 and over | 40% |
| Single person's allowance | 1,650 |
| Married couple's allowance | 3,300 |
| Single parent's allowance | 1,650 |
| Personal income tax in Ireland is levied on an individual's taxable income, which includes income from employment, self-employment, investments, and other sources. Taxpayers are entitled to various deductions and allowances, such as the single person's allowance, married couple's allowance, and single parent's allowance, which can reduce their taxable income. Taxpayers are required to file their tax returns online, and payment of taxes is due by October 31st of the following year. Additionally, taxpayers may be eligible for tax credits, such as the earned income tax credit, which can provide further relief. |
Corporate & Business Tax
- The corporate tax rate in Ireland is 12.5% for trading income, and 25% for non-trading income.
- Small businesses and start-ups may be eligible for various incentives, such as the Start-Up Relief, which provides a reduced corporate tax rate of 0% for the first three years of trading.
- Ireland has several free zones, which offer reduced or zero tax rates for companies that operate within these zones.
- Companies are required to register with the Revenue Commissioners and obtain a tax identification number.
- Companies are also required to file their tax returns online, and payment of taxes is due by the 21st day of the ninth month following the end of the accounting period.
VAT / Sales Tax
- The standard rate of VAT in Ireland is 23%, which applies to most goods and services.
- Reduced rates of VAT apply to certain goods and services, such as food and children's clothing, which are taxed at 13.5%.
- Exemptions from VAT apply to certain goods and services, such as healthcare and education services.
- Tourists may be eligible for a VAT refund on certain purchases, such as clothing and electronics, under the VAT Retail Export Scheme.
For Expats & Foreign Workers
- Tax residency rules for expats and foreign workers in Ireland are based on the number of days spent in the country, with individuals who spend 183 days or more in Ireland in a tax year considered resident for tax purposes.
- Ireland has a network of double taxation treaties with over 70 countries, which aim to prevent double taxation and provide relief for taxpayers.
- Expats and foreign workers may be eligible for social security benefits, such as pension and healthcare benefits, under the Social Security Agreement.
- Remittance rules apply to income earned by expats and foreign workers, with tax withheld at source on certain types of income, such as employment income.
- Expats and foreign workers may be required to file a tax return in Ireland, even if they are not resident for tax purposes.
- Expats and foreign workers may also be eligible for tax credits, such as the foreign earnings deduction, which can provide relief for taxpayers who earn income abroad.
Crypto & Investment Income
- Investment income, such as dividends and interest, is taxed as ordinary income, with tax rates ranging from 20% to 40%.
- Capital gains tax applies to gains made on the disposal of assets, such as shares and property, with a tax rate of 33%.
- Cryptocurrency is taxed as a trading asset, with gains made on the disposal of cryptocurrency subject to capital gains tax.
- Taxpayers may be eligible for relief on investment income, such as the rent-a-room relief, which provides relief for taxpayers who rent out a room in their home.