Ireland – a top destination for Non-Dom status?

This article was originally published in the BKR International EMEA Update, released 14^th March 2024. Written by: John Conway, BBS AITI CTA, Partner and Tax Specialist, AAB. 

The recent announcement that the UK is to severely restrict its favourable Non-Dom status rules has led many UK-based ‘Non-Doms’ to start the search for alternative destinations. Non-Dom describes a UK resident who has their permanent home (‘domicile’) outside the UK, and therefore may not have to pay UK tax on foreign income.

Countries high on the list of UK alternatives may include Italy, Spain, Malta, Singapore and Ireland. Ireland may attract many of the UK-based ‘Non-Doms’ due to its proximity and its similar tax regime for ‘Non-Doms’.

The UK has historically been an attractive location for ‘Non-Doms’ to relocate to for many reasons. The tax regime was favourable, but the UK is also a world heavyweight in many economic and financial activities, particularly the financial sector based around the City of London. As a result, many global wealthy individuals relocated to the UK and benefited from its ‘Non-Dom’ tax regime.

Is Ireland the best destination for Non-Dom status?

Ireland has a ‘Non-Dom’ tax regime similar to the one that operated in the UK. In fact, the Irish ‘Non-Dom’ regime is arguably more advantageous than that of the UK. Unlike the UK, Ireland does not have a time limit and therefore it does not impose a “deemed-domicile” rule after a certain number of years. There is also no annual charge for ‘Non-Doms’ and no application or formal qualification process.

Ireland has, in recent decades, also been a popular location for entrepreneurs and high-net-worth individuals to relocate to. The booming tech and pharma sectors in Ireland meant that many foreign executives have relocated to Ireland, and the Irish ‘Non-Dom’ regime has benefited these individuals, along with other tax reliefs such as SARP (Special Assignee Relief Programme).

It is relatively straightforward to become a ‘Non-Dom’ in Ireland and avail of the remittance basis of taxation. If an individual plans in advance, it may also be possible to bring “capital” funds into Ireland tax-free.

Like other jurisdictions, Ireland is keeping its ‘Non-Dom’ regime under review; however, in its current format, it is bound to be a consideration for many UK-based individuals who may be affected by its recent restriction on its Non-Dom regime.

Get our help navigating Irish Non-Dom rules

If you have any queries in respect to becoming a ‘Non-Dom’ in Ireland, contact John Conway or your usual AAB contact.