Residence and Domicile Rules


RESIDENCE

An individual will be considered Irish tax resident for a tax year if he spends:

• 183 days in Ireland during that tax year, or
• 280 days in aggregate between that tax year and the previous tax year

Notwithstanding the above, an individual who spends 30 days or less in Ireland in a tax year will not be considered tax resident in that year.

With effect from the 2009 tax year, an individual shall be deemed to be present in Ireland for a day if that individual is present in Ireland at any time during that day. Prior to the 2009 tax year, a day was only counted if the individual was present in Ireland at the end of the day.

ORDINARY RESIDENCE

A person is ordinarily resident in Ireland for a year of assessment if he has been resident for each of the three years of assessment preceding that year.

An individual who is ordinarily resident in Ireland will remain ordinarily resident until he has been non Irish tax resident for three consecutive years of assessment. In this situation, he will be non-ordinarily resident from the fourth year.

DOMICILE

“Domicile” is not defined in the Income Tax Acts. Broadly it refers to the country which an individual considers as his natural home.

Domicile of Origin

An individual is born with a domicile known as his domicile of origin. Normally he will assume the domicile of his father, but where his parents have not married, or if his father dies before his birth, he will assume his mother’s domicile.

Once an individual has reached the age of majority he can reject his domicile of origin and acquire a new domicile. In order to abandon his domicile of origin the individual must prove conclusively that he has severed all links with the country in which his domicile of origin lies. A domicile cannot be lost by a mere abandonment. It can only be lost by the positive acquisition of a domicile of choice.

Domicile of Choice

A domicile of choice is the domicile which any independent person can acquire for himself by a combination of residence and intention. To acquire a domicile of choice an individual must establish a physical presence in the new jurisdiction and have an intention to reside there indefinitely. A domicile of choice can in turn be abandoned. This will involve either the acquisition of a new domicile of choice or the revival of the domicile of origin. Here again, the two factors of presence and intention will be required.

EFFECT OF RESIDENCE/ORDINARY RESIDENCE AND DOMICILE ON TAX STATUS

IRISH DOMICILED NON IRISH DOMICILED
Not Resident and Not Ordinarily Resident Irish source income only Irish source income only
Resident but not Ordinarily Resident Irish source income 

Foreign employment income relating to a job performed in Ireland.

Other foreign income (including UK investment income) that is remitted

Irish source income 

Foreign employment income relating to a job performed in Ireland.

Other foreign income (including UK investment income) that is remitted

Resident and Ordinarily Resident Worldwide income Irish source income 

Foreign employment income relating to a job performed in Ireland.

Other foreign income (including UK investment income) that is remitted

Ordinarily Resident but not Resident Worldwide income except: 

–     A trade or profession no part of which is carried out in Ireland:

–     An office or employment all of the duties of which are performed outside Ireland;

–     Foreign income not exceeding €3,810

Irish source income 

Foreign employment income relating to a job performed in Ireland.

Other foreign income (including UK investment income) that is remitted