Are you an employee relocating to Ireland? If so, you may be eligible for income tax relief through the Special Assignee Relief Program (SARP). Here’s what you need to know:

Income tax relief is available to employees who have previously worked for their employer for at least 6 months in a country with which Ireland has a double taxation agreement or a tax information exchange agreement. Whether you continue working in Ireland for your foreign employer or transition to employment with an associated company in Ireland, you may qualify for relief.

Under SARP, eligible employees can claim to have 30% of their income exceeding €100,000 disregarded for income tax purposes. If you arrived in Ireland after January 1, 2019, this proportion applies to income over €75,000, up to a limit of €1,000,000. However, please note that this relief does not extend to the Universal Social Charge (USC), and it can only be applied for a maximum of 5 consecutive years.

To qualify for SARP relief, certain conditions must be met:

• You must be a tax resident in Ireland in the tax year.
• You must not have been a tax resident in Ireland in any of the five years before you arrived in the country.
• You must have been a full-time employee for the entire 6 months before you arrived in Ireland.
• You must have performed employment duties for the foreign employer or associated company for a minimum period of 12 months.
• Your annual basic salary must be at least €100,000 (this threshold was adjusted from €75,000 on January 1, 2023), excluding bonuses, benefits, or share remuneration.
• A valid SARP claim must be made within 90 days of commencing duties in Ireland by your employer.

If you meet the eligibility criteria, you are entitled to receive certain travel expenses and certain costs associated with your children’s education tax-free.

You can apply for relief directly through your payroll or claim the relief at the end of the tax year.