The taxation system for Ukrainians in Ireland

The taxation system for Ukrainians in Ireland is based on general principles of taxation that apply to all citizens of Ireland.

A person’s tax liability depends on whether they are tax resident in Ireland.

The general rule applies here – if an individual is in Ireland for 183 days during the tax year, he becomes a resident.

If an individual has lived in Ireland for more than 280 days in the current and previous tax years, he also acquires residency. Resident taxation applies to worldwide income.

Non-residents also have to pay tax, but only on those incomes they received on the territory of Ireland.

Income tax

The main type of taxation in Ireland is income tax, which is paid on income from any activity, including wages, business activities, investments, and other sources of income.

Income tax rates in Ireland are differentiated depending on income and family size.

The 20% tax rate applies to:

• income up to 35,300 euros for a single person
• incomes up to 44,300 euros for a married couple where one of the spouses earns
• incomes up to 70,600 euros for a married couple, where both spouses earn
• income up to 39,300 for a family with children

For each of these categories, incomes exceeding the specified amounts are taxed at 40%.

Social security tax

Social security tax – 4% of income over €25,761 (increased in 2024 to €22,920 in 2023) to finance social security programs.

VAT tax

Value-added tax (VAT) – it is an indirect tax paid by consumers when purchasing goods and services. VAT applies to all goods and services sold in Ireland. The VAT rate in Ireland is 23%. The reduced rate of 13.5% applies to services in the fields of construction, agricultural services, etc. There is an even more reduced rate of 9%. The rate of 4.8% applies to those persons engaged in livestock breeding.

Capital gains tax

It applies to gains from the sale of assets such as property or shares at a rate of 33% after a threshold amount of €335,000 is exceeded.

Inheritance and gift tax

Inheritance and gift tax is a tax paid by heirs or donors when receiving an inheritance or gift.

Inheritance and gift tax applies to all inheritances and gifts that exceed the statutory limit.

In 2024, the inheritance and gift limit is €335,000. If the amount of inheritance or donation exceeds this limit, then the heirs or donors must pay tax.

Real estate tax

Property tax is a tax paid by property owners in Ireland. Real estate tax applies to all types of real estate, including residential real estate, commercial real estate, and land.

The property tax rate in Ireland is differentiated depending on the type of property and its location.

Importantly! If you came to Ireland because of the war, but continue to work remotely for your Ukrainian employer, you do not have to pay income tax in Ireland on the income you receive from the employer.

The same applies to employees in Ireland for corporate tax about any Ukrainian resident company if the employee, director, or service provider would continue to be in Ukraine, but for the circumstances of the war.

Tax declaration

All people who live in Ireland and have income must file a tax return.

The tax return must be submitted by October 31 of the year following the reporting year. It can be submitted electronically or by mail.

To avoid problems with taxation, to understand and establish your tax residency, and to calculate the amount of taxes to be paid, we recommend that you consult the specialists of the Prikhodko and Partners law firm.