Expat contract - how many days can I spend in Ireland?

Hi,

I'm talking to my employers about possibly taking an ex-pat contract to work in another EU country and paying tax etc there. Does anyone know (or can anyone point me in the right direction to find out) how many days I can spend in Ireland per year under such a contract without incurring additional tax implications here. Is it up to the 183 days that I found on CitizensInformation.ie?

(Not looking in any way to commit any form of tax evasion - quite the opposite - but I know that UK colleagues on similar contracts can only spend 60 days per year in the UK, and just want to clarify the requirements in Ireland).


Thanks for your help.

Ireland is more lenient than the UK in that respect, indeed it is 183 days. Depending on when you leave the country that could be a big advantage, e.g. I went expat in April several years ago, and got all my tax back for that year within a few weeks, once I informed them that I was leaving the country and therefore would not hit the 183 days in the country. Also, even if you arrive back in the country mid way through the year, you still get the full tax allowances for the year, so can pay minimal income tax at the higher rate.

Thanks - that's really helpful. I have the potentially added complication that I'm in the second year of my first mortgage so I need to also work out how much the TRS that I get is worth so that I can work that into my contract and don't lose by moving - I'm assuming that this is something that I would lose if I were to move to another country?

As well as the 183 day test you must also watch the 280 day test. That is, you must count the days in the tax year in question and the immediately preceding tax year and if the total exceeds 280 days you are taxresident for the year. For the 280 day test to apply you need to be in Ireland for at least 30 days in the year in question to be resident.

Therefore, say you leave Ireland at the end of this month and had 240 days in Ireland in 2009. If you have even 40 days in Ireland in 2010 then you will remain tax resident for 2009 and 2010 and taxable on your worlwide income here (assuming you are Irish domiciled).

Are you going to stay on an Irish payroll during your assignment? If you are and you leave Ireland with the intention and in such circumstances that you will be non resident in the following year then split year relief will apply to your employment income. A PAYE exclusion order can be applied for and Irish PAYE will cease to apply from when you leave. However you need to watch both the 183 day and 280 day test in determining whether you will be resident in the following year.

You will cease to qualify for TRS on your mortgage from when you stop using the house as your main residence.

Useful information on the 280 days, thanks. I will probably be staying on an Irish payroll (have been in a secondment situation with tax equalisation for most of the last year, but think that this contract is slightly different). The plan at present is to move for the rest of 2009 and all of 2010, so presumably if I move back at the start of 2011 then I'll be deemed to have been tax resident for 2010 also?

I will be getting tax advice through work before this is finalised, but want to be aware of what I should be looking out for.

For each tax year you look at the 183 day test and the 280 day test to determine if you are resident. Therefore if you go out in 2009 and are out for all of 2010 the situation will be as follows:

2009 - resident under the 2008 day test counting days in 2009 and 2008 (and probably the 183 day test also if you leave late in 2009)
2010 - if less than 183 days in 2010 then non resident under the 183 day test. Then you must count the days in 2010 and 2009 and if less than 280 days, you are non resident under the 280 day test also (i.e. days in 2011 dont come into it, you look backwards over the 2 years)
2011 - resident under the 183 day test assuming you are back early in the year.

Therefore as you are non resident in 2010 a PAYE exclusion order can be applied for and Irish PAYE should cease to be deducted for the period you are abroad. You will obviously have to get advice in the country you are going to a there will likely be tax issues there.

As well as losing the TRS you will probably have the new €200 levy on your house.

Thanks, Breninio. That makes it a lot clearer, and thanks for the heads up on the €200 levy.