# Primary Source Authorities: Ireland Tax Residency, Ordinary Residence & Remittance Basis **Jurisdiction:** Ireland (*Éire*) **Primary Legislation:** Taxes Consolidation Act 1997 (TCA 1997), Part 34 (*Residency, Ordinary Residence and Domicile*) **Tax Authority:** Revenue Commissioners (*Oifig na gCoimisinéirí Ioncaim*) Primary PDF References: - [`Irish-Tax-Statute.pdf`](Irish-Tax-Statute.pdf) (Taxes Consolidation Act 1997, Act No. 39 of 1997) - [`Finance (No. 2) Act 2008 (Act No. 25 of 2008).pdf`](Finance%20%28No.%202%29%20Act%202008%20%28Act%20No.%2025%20of%202008%29.pdf) (Section 15 Amendment) --- ## 1. Statutory Residence Tests — Section 819 TCA 1997 ### A. The 183-Day Test (Section 819(1)(a) TCA 1997) > **Statutory Text — Section 819(1)(a):** > *"An individual shall be resident in the State for a tax year if the individual is present in the State— (a) for a period of, or periods amounting in the aggregate to, 183 days or more in that tax year..."* * **Tax Year:** Calendar year (1 January to 31 December). * **Threshold:** 183 days or more in a single tax year triggers tax residency for that year. --- ### B. The 280-Day Look-Back Test & 30-Day Proviso (Section 819(1)(b) & Section 819(2) TCA 1997) > **Statutory Text — Section 819(1)(b):** > *"An individual shall be resident in the State for a tax year if the individual is present in the State— (b) for a period of, or periods amounting in the aggregate to, 280 days or more in that tax year and the immediately preceding tax year..."* > **Statutory Proviso — Section 819(2) TCA 1997:** > *"Notwithstanding subsection (1)(b), where for a year of assessment an individual is present in the State for a period in the whole amounting to not more than 30 days— (a) the individual shall not be resident in the State for the year of assessment, and (b) no account shall be taken of the period for the purposes of the aggregate mentioned in subsection (1)(b)."* * **Mechanic:** Combines days present in Ireland across the **current tax year** (Year 2) and the **immediately preceding tax year** (Year 1). * **Condition 1:** Total combined days across both years must equal or exceed **280 days**. * **Condition 2 (Section 819(2) Proviso):** The individual must spend at least **31 days** (more than 30 days) in **EACH of the two tax years**. If physical presence in either year is 30 days or less, that year is ignored for the 280-day look-back test. * **Non-Retroactive Application:** Triggering residency under the 280-day test deems the individual resident **only for the second (current) tax year**, NOT retroactively for the first year. --- ### C. The "Any Presence" Day Counting Rule — Section 819(4) TCA 1997 & Section 15 Finance (No. 2) Act 2008 > **Original Statutory Text — Section 819(4) TCA 1997 (Act No. 39 of 1997):** > *"For the purposes of this section, an individual shall be deemed to be present in the State for a day if the individual is present in the State at the end of the day."* > **Substituted Statutory Text — Section 15 Finance (No. 2) Act 2008 (Act No. 25 of 2008):** > *"For the purposes of this section— (a) as respects the year of assessment 2008 and previous years of assessment, an individual shall be deemed to be present in the State for a day if the individual is present in the State at the end of the day, and (b) as respects the year of assessment 2009 and subsequent years of assessment, an individual shall be deemed to be present in the State for a day if the individual is present in the State at any time during that day."* * **Abolition of Midnight Rule:** Prior to 2009, presence was determined by being physically present in Ireland at midnight ("at the end of the day"). Section 15 of Finance (No. 2) Act 2008 substituted Section 819(4) for 2009 and subsequent years so that presence at **any point in time during the calendar day** (even 5 minutes before midnight) counts as a full day in Ireland. --- ### D. Voluntary Election into Tax Residency (Section 819(3) TCA 1997) > **Statutory Text — Section 819(3):** > *"Where an individual who is not resident in the State for a tax year satisfies the Revenue Commissioners that the individual is in the State... with the intention and in the expectation that the individual will be resident in the State for the following tax year, the individual may elect to be treated as resident in the State for the first-mentioned tax year."* * **Unique Feature:** An individual who fails both the 183-day and 280-day tests in an arrival year may **voluntarily elect** to be treated as Irish tax resident for that year, provided they intend to be tax resident in the subsequent year. --- ## 2. Ordinary Residence & The 3-Year Departure Tail — Section 820 TCA 1997 ### Statutory Text — Section 820 TCA 1997: > **Section 820(1):** *"An individual shall become ordinarily resident in the State for a tax year if the individual has been resident in the State for each of the 3 immediately preceding tax years."* > **Section 820(2):** *"An individual who is ordinarily resident in the State shall cease to be ordinarily resident in the State for a tax year if the individual has been non-resident in the State for each of the 3 immediately preceding tax years."* ### Operational Mechanics: 1. **Acquisition:** Established after being tax resident in Ireland for **3 consecutive tax years** (begins in tax year 4). 2. **Persistence (The 3-Year Tail):** Once ordinarily resident, an individual retains "ordinary residence" status for **3 full tax years after ceasing to be tax resident**. 3. **Worked Example:** * Tax Resident: 2020, 2021, 2022 * Ordinarily Resident: 2023 * Departed Ireland (Non-Resident): 2024, 2025, 2026 * Status 2024–2026: **Non-Resident BUT Ordinarily Resident** * Ordinary Residence Ceases: End of tax year 2026 (Non-Ordinarily Resident in 2027). --- ## 3. Domicile & Remittance Basis — Section 71 (Income Tax) and Section 29(4) (Capital Gains Tax) TCA 1997 * **Income Tax Remittance Basis — Section 71 TCA 1997 (Schedule D, Case III):** Under Section 71(2) & (3) TCA 1997, an individual who satisfies Revenue that they are not domiciled in Ireland is taxed on foreign income (under Case III of Schedule D) **only to the extent that the income is remitted into Ireland**. *(Section 18 of Finance Act 2008 repealed Section 73 TCA 1997, extending remittance basis treatment to UK-source income).* * **Capital Gains Tax Remittance Basis — Section 29(4) TCA 1997:** Under Section 29(4) TCA 1997, a non-domiciled individual resident or ordinarily resident in Ireland is chargeable to CGT on foreign assets **only on amounts received in Ireland**. *(Section 42 of Finance (No. 2) Act 2008 deleted the UK exclusion in Section 29(4), extending CGT remittance basis treatment to UK-situated assets for disposals on or after 20 November 2008).* * **Timely Relevance:** Following the UK's abolition of the non-dom remittance basis regime in April 2025, Ireland represents one of the primary statutory remittance basis jurisdictions remaining in Western Europe. --- ## 4. Split-Year Relief — Section 822 TCA 1997 * **Arrival / Departure:** Applies to individuals moving to or from Ireland for employment or permanent residence. * **Effect:** Employment income earned prior to arrival or after departure is excluded from Irish income tax for the split tax year.