Ireland: Living There - Tax Issues
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Living There
INDIVIDUAL TAXATION
Residents in Ireland are taxed on their worldwide income. Foreign individuals become residents if they are present in Ireland for more than 183 days in a year. Married couples have the option to be taxed jointly or separately.
INCOME TAX
Residents are taxed on all types of income. Taxable income is generally an aggregate of all types of income. Deductions, allowances and credits may be applied before income tax is imposed. Different rates apply for single individuals and married persons.
INCOME TAX RATES 2008 FOR SINGLE/WIDOWED INDIVIDUALS |
|
| TAXABLE INCOME, € | TAX RATE |
| Up to €35,400 | 20% |
| Over €35,400 | 41% on all income over €35,400 |
| Source: Global Property Guide | |
INCOME TAX RATES 2008 FOR SINGLE/WIDOWED INDIVIDUALS WITH DEPENDENT CHILDREN |
|
| TAXABLE INCOME, € | TAX RATE |
| Up to €39,400 | 20% |
| Over €39,400 | 41% on all income over €39,400 |
| Source: Global Property Guide | |
INCOME TAX RATES 2008 FOR MARRIED PERSONS, SPOUSE WITHOUT INCOME |
|
| TAXABLE INCOME, € | TAX RATE |
| Up to €44,400 | 20% |
| Over €44,400 | 41% on all income over €44,400 |
| Source: Global Property Guide | |
TAX CREDITS FOR 2008 |
||
| PERSONAL TAX CREDIT | ||
| Single Person | ||
| Married Person | ||
| Widowed Person | ||
| - Qualifying for One Parent Family Tax Credit | ||
| - Without dependent children | ||
| - In year of bereavement | ||
| One-Parent Family, Widowed, Deserted, Separated or Unmarried | ||
| Widowed parent | ||
| - bereaved in 2007 | ||
| - bereaved in 2006 | ||
| - bereaved in 2005 | ||
| - bereaved in 2004 | ||
| - bereaved in 2003 | ||
| - bereaved in 2002 | ||
| Home carer | ||
| PAYE tax credit | ||
| Age tax credit | ||
| - If singled or widowed | ||
| - If married | ||
| Incapacitated child | ||
| Dependent relative whose income is less than €13,453 | ||
| Blind tax credit | ||
| - Single | ||
| - One spouse blind | ||
| - Both spouses blind | ||
| - Additional allowance for guide dog | ||
| Incapacitated person (allowance for employing a carer) | ||
For married persons with spouses with income, an increase in the standard tax band is granted. The increase is restricted to either the income of the spouse with the lower income or €26,400, whichever is lower.
Residents are entitled to numerous tax credits and deductions.
EXEMPTION LIMITS FOR 2008 |
||
| PERSONAL CIRCUMSTANCES | EXEMPTION LIMITS, € | |
| Single/Widowed | ||
| - Under 65 years of age | not applicable | |
| - 65 years of age or over | €20,000 | |
| Married | ||
| - Under 65 years of age | not applicable | |
| - 65 years of age or over | €40,000 | |
| Single/Widowed/Married under 65 years of age | ||
| - Additional for 1st and 2nd dependent child | not applicable | |
| - Additional for each subsequent child | not applicable | |
| Single/Widowed/Married 65 years of age and over | ||
| - Additional for 1st and 2nd dependent child | €575 | |
| Additional for each subsequent child | €830 | |
| Marginal relief tax rate (only applies to persons 65 years of age and over) | 40% | |
The Irish Tax & Customs have more details on tax credits and deductions available to residents.
CAPITAL GAINS
Capital gains tax is imposed at a flat rate of 20%. Taxable capital gains are generally computed as selling price less acquisition and improvement costs. The first €1,270 of capital gains is exempt. Gains from the disposal of a taxpayer’s primary residence are also exempt.
PROPERTY TAX
In Ireland, no property tax is levied on residential property.
Ireland - more data and information
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