Residency

Could someone tell me what rules relate to residency in the following situation: A person owns a house and lives in it until June 2002. His job is then transferred from the republic to the north, so he has to move there. He then rents out the house in the south. In June 2005 he is transferred back to the south, gives notice to his tenents, and moves back into the house. During the period June 2002 to June 2005 he spent 6 months abroad (Sep 03 to Mar 04). In the time he is living in the north he would come home to his parents (in the south) every 2nd weekend approx.

Is he considered resident or non resident for tax pruposes, and is his uk salary taken into account when declaring the rental income to the irish revenue.

Any advice would be much appreciated. Thanks.

Individual resident and domiciled in Ireland - your friend in 2002 & 2005

An individual who is resident and domiciled in Ireland is liable to Irish income tax on his/her world-wide income.

Individual not resident but ordinarily resident and domiciled - your friend in 2003, 2004

the income of an individual who is not resident but who is ordinarily resident is liable to taxation on the same basis as a resident with the exception of income from: -

· a trade or profession no part of which is carried on in Ireland,
· an office or employment all of the duties, apart from incidental duties, are performed outside Ireland and
other income which does not exceed €3,810.

Thank you gongey.

Folks

My reading would be that the individual is resident in the year 2002.

The individual is not resident in the years 2003, 2004 and 2005.

I am quoting from the revenue guide:

You will be resident....in either of the following circumstances:

If you spend 183 days or more in Ireland in the tax year in question

or

If you spend 280 days or more in Ireland for any purpose over a period of two consecutive tax years you will be regarded as resident in Ireland for the second tax year.

The revenue guide can be accessed [broken link removed].

In 05 he arrived back in June - thats's 7 months or 214 days to Dec 31? passes the 183 day rule. thus he is resident in 05 and as i said in 02?

Gongey, I stand corrected

Even if the individual arrives on the last day of June 2005, the remaining 6 months give 184 days in the country, so the person is resident in Ireland.