AITI Chartered Tax Adviser

Non-residence – it’s not that simple

Published on

To the man in the street (and many professionals!) in order to become “non-resident” and thereby escape the Irish tax system, you need only spend less than 183 days in Ireland.

In order to become non-resident for tax purposes you need to satisfy two tests:
(a) You must spend less than 183 days in Ireland in the tax year (e.g., 2017).
(b) You must spend less than 280 days in Ireland in the tax year and the previous year combined (2017 and 2016 combined).

1. Even if you succeed in becoming non-resident (by passing the 183/280 day test above) you will continue to be “ordinarily resident” (and subject to Irish tax on your worldwide income) unless
(a) you have clocked up three successive years of non-residence, or
(b) you have become resident in country which has a tax treaty with Ireland.

2. If you become non-resident in order to escape CGT by making a capital gain while abroad, and then return to Ireland within five years of having left, the CGT on the gain can be charged on your return.

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