Financial Planning in Ireland: A Guide for Expats and International Investors

Ireland occupies a distinctive position among European destinations for internationally mobile HNW individuals. Its common law legal system, English language, EU membership, and proximity to the UK create a familiar operating environment for British movers. Its corporation tax rate of 12.5% has attracted the European headquarters of many major multinationals, creating a well-paying senior executive community in Dublin. The personal tax regime is less competitive — a combined top effective rate approaching 55% on employment income — but a range of reliefs and Ireland's non-domicile rules create meaningful planning opportunities.

This guide is for general information only. Irish tax rules are subject to change; individual circumstances vary significantly. Always take professional advice from Irish and UK-qualified advisers before making decisions.

Tax Residency Rules

Ireland uses a day-count test for tax residence. An individual is Irish tax resident if they spend:

• 183 days or more in Ireland in a tax year; or
• 280 days or more combined across the current and preceding year (with at least 30 days in each year).

A day of presence is counted if the individual is in Ireland at any point during the day (the "midnight rule" used in the UK does not apply — Ireland uses the "at any point" test). Accurate diary records are therefore important for those straddling the threshold.

Irish residents are subject to Irish income tax on their worldwide income (unless availing of the remittance basis — see below). Non-residents are taxed only on Irish-source income.

Ordinary residence — a separate concept — arises after three consecutive tax years of Irish tax residence and persists for three years after residency has ceased. Ordinarily resident individuals retain Irish tax exposure on worldwide income even if they subsequently depart, though treaty relief typically applies.

Income Tax, USC, and PRSI

Irish personal taxes consist of three layers:

Income Tax (IT): 20% on income up to €42,000 (single person, 2026), 40% above.

Universal Social Charge (USC): progressive surcharge applied to gross income before pension contributions and most deductions. Key rates: 0.5% on income up to €12,012; 2% on €12,012–€25,760; 4% on €25,760–€70,044; 8% on income above €70,044. A surcharge of 3% applies on non-PAYE income above €100,000.

Pay Related Social Insurance (PRSI): 4% on employment income (employee contribution), with employer contributions additional.

The combined marginal rate for a higher earner on PAYE employment is therefore approximately 52% (40% IT + 8% USC + 4% PRSI). For non-PAYE income above €100,000, USC surcharges push the combined rate to around 55%.

Capital Gains Tax and Entrepreneur Relief

CGT in Ireland is levied at a standard rate of 33% on gains arising on the disposal of most assets. The annual exempt amount is modest (€1,270) and unchanged for many years.

The Entrepreneur Relief (formerly known as Revised Entrepreneur Relief) reduces the CGT rate to 10% on gains from the disposal of qualifying business assets, subject to a lifetime cap of €1 million in gains. To qualify, the individual must have owned the business (company shares or business assets) for a continuous period of at least three of the five years before disposal, and must have been a director or employee working at least 50% of their time in the business. This is a significant relief for owner-manager entrepreneurs, though the €1 million cap is relatively low by international standards.

Non-Domicile and Remittance Basis

Historically, individuals resident but not domiciled in Ireland could elect the remittance basis: paying Irish income tax only on income from Irish sources and on non-Irish income and gains actually remitted to Ireland, not on worldwide income.

Unlike the UK — which abolished its remittance basis and non-dom regime from 6 April 2025, replacing them with a four-year Foreign Income and Gains regime — Ireland has retained its remittance basis for non-domiciled residents. There is no annual charge to access it, and (provided Irish domicile is not acquired) it can in principle be relied upon indefinitely. The divergence between the two regimes following the UK reform has, if anything, made Ireland comparatively more attractive for non-domiciled individuals; those previously planning around the UK remittance basis may wish to take advice on whether Irish residence now offers a more favourable footing.

The domicile levy — an annual charge of €200,000 on Irish-domiciled individuals whose worldwide income exceeds €1 million and whose Irish tax is below a threshold — continues to apply to Irish-domiciled (not non-domiciled) individuals and should be factored into the planning of those who acquire an Irish domicile.

Special Assignee Relief Programme (SARP)

SARP provides income tax relief to employees assigned from abroad to work in Ireland. Qualifying individuals who were employed by a relevant employer for at least six months before their assignment can claim relief from Irish income tax on 30% of employment income above a minimum salary threshold (up to a salary of €1 million). For new entrants from 1 January 2026 that minimum basic salary threshold is €125,000 (raised from €100,000 for entrants up to 31 December 2025; individuals already in the relief remain on the €100,000 threshold). Relief is available for up to five consecutive years.

SARP does not provide relief from USC or PRSI, so the saving is income tax only. It remains a useful relief for senior executives assigned to Ireland by multinational employers, and is worth quantifying carefully before accepting or declining an Irish posting.

Property Ownership

There are no restrictions on foreign nationals purchasing property in Ireland. Stamp duty on residential property is 1% on consideration up to €1 million and 2% above €1 million; on commercial property it is 7.5%. Local Property Tax (LPT), charged annually at rates based on property valuation band, applies to all residential properties.

The Irish property market — particularly in Dublin — has been characterised by supply constraints, strong demand, and significant price appreciation over the past decade. Prime residential values in Dublin 4 (Ballsbridge, Donnybrook) and Dublin 6 (Ranelagh, Rathgar) are comparable to London's Zone 2–3.

Banking

Major Irish banks include AIB, Bank of Ireland, and Permanent TSB; Ulster Bank has substantially withdrawn from the market. International banks active in Ireland include Citibank, JP Morgan, Bank of America, and HSBC. The retail banking market has contracted following the post-2008 crisis, and account opening for newly arrived non-residents can require careful documentation. Private banking services are available through AIB Private Banking and through the Irish offices of international private banks.

Pension Considerations for UK Expats

UK state pension rights are preserved by continued NI contributions (voluntary Class 2 or 3) or by qualifying contribution periods in Ireland — Ireland and the UK have a social security agreement that allows contribution records to be combined for qualifying purposes.

Irish private pensions (Personal Retirement Savings Accounts, PRSAs, and occupational schemes) are broadly tax-efficient vehicles: contributions receive income tax relief at the marginal rate, and funds grow tax-free. There is a Standard Fund Threshold (SFT) of €2 million (pension fund cap), above which a chargeable excess tax of 40% applies. This affects high earners with long contribution histories.

UK pension income drawn whilst resident in Ireland is taxable in Ireland (as residence state) under the UK–Ireland DTA, with credits for any UK source deduction. Irish income tax plus USC applies on pension income in the normal way.

UK–Ireland Double Taxation Agreement

The UK and Ireland share an unusually close tax relationship: both are common law jurisdictions with overlapping treaties and extensive practical cross-border experience. The UK–Ireland DTA (1976, as updated) provides:

• Dividends: 15% withholding (5% for corporate shareholders with 25%+ ownership)
• Interest: 0% withholding
• Royalties: 0% withholding
• Government pensions: taxable in the source state (UK)
• Private pensions: taxable in the state of residence (Ireland)

The UK–Ireland social security agreement (separate from the DTA) coordinates National Insurance and Irish PRSI, preventing double social contribution liability.

Practical Expat Community Observations

Dublin has a thriving international community centred on the technology, pharmaceutical, financial services, and professional services sectors. The IFSC (International Financial Services Centre) in Dublin's docklands is home to European operations of many major banks and fund managers. The south Dublin suburbs — Foxrock, Blackrock, Dalkey, Killiney — are particularly popular with senior expat families for their proximity to good schools, the coast, and transport links.

Quality international private schooling is available (including the International School of Dublin and St Andrew's College). Healthcare is a mixed picture: the public system is under pressure, but private healthcare is well developed — VHI, Laya, and Irish Life Health are the major providers, and private cover is advisable.

Living costs in Dublin have risen sharply; housing in prime areas is expensive. Outside the capital, Cork, Limerick, and Galway offer strong quality of life at lower cost.

How Global Investments Can Help

Our advisers work with individuals and families moving to Ireland or managing Irish assets. We can help you navigate SARP eligibility, review the implications of the non-dom changes for your existing structures, optimise your pension arrangements across both jurisdictions, and coordinate with Irish solicitors and tax advisers. Contact us to discuss your plans.