Ireland's Remittance Basis for Non-Domiciled Residents: Section 71 TCA 1997

Ireland's Non-Dom Remittance Basis: Still Intact

While the United Kingdom abolished its non-domicile remittance basis from April 2025, Ireland's equivalent system remains in place. Section 71 of the Taxes Consolidation Act 1997 (TCA 1997) provides that a non-domiciled individual resident in Ireland is taxable on foreign income only to the extent that it is remitted to Ireland. Foreign income kept offshore is not subject to Irish income tax.

This makes Ireland one of the few remaining major English-speaking common-law jurisdictions that provides a remittance basis for non-domiciled residents — and one that does so without any annual charge (no equivalent of the UK's former Remittance Basis Charge), regardless of how many years the individual has been Irish resident.

Section 71 TCA 1997: The Basic Rule

Section 71 TCA 1997 provides that where a person is resident in Ireland but not domiciled in Ireland, they are charged to Irish income tax on:

1. All Irish-source income (arising basis — the same as a domiciled Irish resident)
2. Foreign income that is remitted to Ireland only (remittance basis for foreign income)

"Remittance" for Irish purposes is not as elaborately defined as the UK's statutory remittance definition. HMRC's 800-page Remittance Manual has no direct Irish equivalent. Revenue's guidance is less detailed, and the Irish definition of remittance draws on case law rather than a comprehensive statutory code.

The core principle: a remittance occurs when foreign income is received in Ireland, applied for the benefit of the taxpayer in Ireland, or used to discharge a liability in Ireland.

What "Irish Source" Means

Irish-source income includes:

• Income from employment where the duties are performed in Ireland
• Irish rental income
• Dividends from Irish-resident companies
• Interest from Irish financial institutions
• Income from an Irish trade or profession

Income from employment for a non-Irish employer where the duties are performed outside Ireland is foreign-source income, even if the employee is Irish-resident. A UK-based employer who pays a non-dom Irish resident for remote work performed in the UK pays Irish-source income only for the proportion of duties performed in Ireland.

The Absence of a Remittance Basis Charge

Unlike the UK's former system (which charged £30,000 after 7 years and £60,000 after 12 years), Ireland's remittance basis has no annual charge. A non-dom Irish resident can maintain the remittance basis indefinitely — for 30 years of Irish residence — without any cost penalty.

This is the most significant structural difference between the Irish and (pre-abolition) UK systems. For long-term residents, the Irish system is materially more generous.

Ireland's Residence and Domicile Tests

Tax Residence in Ireland

Irish tax residence is determined under section 819 TCA 1997:

• An individual is Irish resident in a tax year if they are present in Ireland for 183 days or more in that year
• An individual is also Irish resident if they are present in Ireland for 280 days or more across the current and preceding year (the "2-year look" rule), with at least 30 days in each year

The Irish tax year is the calendar year (January to December), not the UK's 6 April to 5 April year.

Ordinary Residence

The concept of "ordinary residence" exists in Irish law (as it did in UK law before 2013). An individual becomes ordinarily resident in Ireland after three consecutive years of Irish tax residence. They remain ordinarily resident for three years after ceasing to be resident. Ordinarily resident individuals are taxed on worldwide income even from foreign sources — the remittance basis does not apply to ordinarily resident individuals.

This is a critical distinction from the UK system. An individual who has been Irish resident for four years is ordinarily resident — and the remittance basis is no longer available to them.

Residence Status	Foreign Income Treatment
Irish resident, not domiciled, not ordinary resident	Remittance basis — only taxed on remitted foreign income
Irish resident, not domiciled, ordinary resident	Arising basis — taxed on all worldwide income
Irish resident, domiciled in Ireland	Arising basis — taxed on all worldwide income

Practical Window for Remittance Basis Use

The remittance basis is available to non-domiciled Irish residents only for the first three years of Irish residence — before ordinary residence is established. This is a narrow window compared to the former UK system (which was available until the 7-year charge point, and with the charge was available indefinitely).

For a newly arrived non-domiciliary, the first three tax years in Ireland provide the opportunity to benefit from the remittance basis. From year four onwards, ordinary residence means the arising basis applies.

Interaction with Offshore Trusts

The interaction of Irish tax law with offshore trusts is less codified than the UK position. There are no direct equivalents of the UK's section 86 TCGA 1992 (settlor CGT attribution) or section 628 ITA 2007 (settlor income attribution) in Irish law.

For non-ordinarily-resident, non-domiciled Irish residents, offshore trust distributions received in Ireland are remittances of foreign income and are taxable in Ireland. Distributions not remitted to Ireland are not taxable.

For ordinarily resident non-domiciliaries (from year four onwards), trust income distributions are taxable on the arising basis regardless of remittance.

The absence of attribution rules means that Irish tax law does not generally tax a non-domiciliary on income accumulated in an offshore trust that has not been distributed. This is a significant practical advantage compared to the UK's position post-April 2025 (where income and gains of trusts with LTUR settlors are attributed directly).

Residence vs Domicile in Ireland: The Irish Courts' Approach

Irish domicile law follows the English common-law domicile rules (domicile of origin, domicile of dependence, domicile of choice). The domicile of origin is the domicile of the father at the date of birth. A domicile of choice is acquired by establishing a permanent home in a new jurisdiction with the intention of residing there indefinitely.

Irish courts have generally followed English case law on domicile, though there is relatively little Irish litigation on the topic compared to the UK. HMRC's detailed guidance on domicile (the HMRC Residence, Domicile and Remittance Basis Manual RDRM) is not binding in Ireland, but is frequently referenced by Irish practitioners as persuasive authority.

Planning Implications: Ireland as a UK Alternative

For internationally mobile individuals considering a European base post-UK-non-dom-reform, Ireland offers:

• The continuing remittance basis (for the first three years of residence)
• 40% income tax rate at relatively modest income levels (above €40,000)
• 0% income tax on foreign income kept offshore (during the non-ordinarily-resident period)
• English language, common law system, and EU membership
• The lowest corporate tax rate in the EU at 12.5% for trading income

For high earners with large offshore investment portfolios who previously relied on the UK remittance basis, Ireland's three-year remittance window may provide a bridge period — but the ordinary residence clock starts running immediately.

HPT Group advises on Irish tax residency planning, the remittance basis under section 71 TCA 1997, and the interaction of Irish rules with offshore trust and company structures. For internationally mobile individuals comparing Ireland with other European jurisdictions, our country profiles provide a detailed overview. Contact our team for a tailored comparison.