AITI Chartered Tax Adviser

Become non-resident

Avoid Irish income tax (and PRSI and USC) by moving abroad.

To become non-resident for a tax year (“the current year”), you need to spend less than:

  • 183 days in Ireland (ROI) in the current year, AND
  • 280 days in ROI in the current year and the preceding year combined: s 819.

However, unless you are moving to a country which has a tax treaty with ROI, you will remain subject to ROI tax for a further three years. This is because you are still ordinarily resident in ROI until such time as you have clocked up three successive years of non-residence: s 820.

One of the benefits of becoming non-resident is that you can be paid a salary without deduction of tax by means of a PAYE exclusion order.

If you move abroad halfway through the year and you will be non-resident the following year, split year treatment allows you not pay tax from the date of departure: s 822.

If you work abroad, but have not sufficient days to make you non-resident, provided you return to Ireland at least once a week, transborder relief means you don’t pay Irish tax over and above the foreign tax you pay: s 825A.