Ireland: Living There - Tax Issues

Country Rating  »

Home ›  Europe ›  Ireland ›  Living There

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.

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 €25,000, whichever is lower.

Allowances, Deductions and Credits

• Single persons are entitled to a credit of €1,760. Married persons are entitled to a credit of €3,520. Widowed parents are entitled to a credit of €3,750, which is reduced by €500 in each of the subsequent 4 years, after which it expires.
• A widow/widower is entitled to a tax credit of €3,520 in the year of the spouse’s death.
• A tax credit of €275 is given to any person who is 65 years or older. This credit is doubled in the case of joint assessment where at least one of the spouses has attained the age of 65 during the year of assessment.
• For single parents with children below 18 or undertaking full-time education and residing with them, a tax credit of €1,760 is granted.
• For jointly assessed couples where one spouse works at home to care for children, the aged or incapacitated persons, a tax credit of €770 is given. This credit will be reduced by 50% of the carer’s income in excess of €5,080 for the year. This credit may not be granted if the couple opts for the increased tax band for two-income couples.
• Under certain conditions, employees are given a credit of €1,760. This credit is limited to 20% of taxable income.
• A tax credit of €80 is granted to taxpayers who are supporting dependent relatives on a low income.

Health Contribution Levy

A health contribution levy is imposed on the income of the self-employed and employed alike. The levy is imposed on the gross income, at a rate of 2%.

CAPITAL GAINS TAX

Gains from the disposal of real estate property are taxed in Ireland. Taxable capital gains are generally computed as selling price less acquisition and improvement costs. Capital gains tax is imposed at a flat rate of 20%. The first €1,270 of capital gains is exempt. Gains from the disposal of a taxpayer’s primary residence are also exempt.

PROPERTY TAXATION

In Ireland, no property tax is levied on residential property.

Ireland - more data and information

• Lawyers (attorneys) with property law practices in Ireland

Your Comments

Post a comment