Ireland

Social security contributions

Pay-related social insurance (PRSI)

PRSI is charged on employment income, including taxable non-cash benefits. Individuals who earn less than EUR 352 in any week are not required to pay PRSI for that week.

PRSI contributions also apply in respect of income from a trade or profession or from investment income. The minimum contribution payable is EUR 500. Payment must be included with preliminary tax, which is payable on or before 31 October of each year. Self-employed persons whose income from all sources is less than EUR 5,000 for 2023 are not liable to PRSI. The self-employed PRSI contribution rate is 4%, which is in line with the rate applicable to employees.

From 1 October 2024, the rate of PRSI (employer and employee) will increase by 0.1%. Self-employed individuals will also see a similar increase in their PRSI rate by 0.1%.

The 2024 PRSI rates are as follows:

* Please note that different rules apply in respect of non-resident Directors.

Additional notes:

• Self-employed persons whose income from all sources is less than EUR 5,000 per year are not liable to PRSI.

Employee PRSI applies to all share-based remuneration. PRSI on share awards (restricted stock units [RSUs], restricted stock awards, and performance share awards) is collected at source as part of the pay-as-you-earn (PAYE) salary withholding tax (WHT) system. Employee PRSI also applies to Revenue Approved Profit Sharing (APSS) and Save As You Earn (SAYE) schemes.

Universal Social Charge (USC)

The USC is a tax payable on gross income, including notional pay, after relief for certain capital allowances but before deducting pension contributions.

The rates for the USC (from 2024 onwards) are as follows for an individual below the age of 70:

For individuals aged 70 years or over, whose aggregate income for the year is EUR 60,000 or less, or individuals in possession of a medical card and whose aggregate income for the year is EUR 60,000 or less, the rates are as follows:

All Department of Employment Affairs and Social Protection payments and income already subjected to Deposit Interest Retention Tax (DIRT) are exempt from the USC.

Net wealth/worth taxes

There are currently no net wealth/worth taxes on individuals in Ireland.

Capital Acquisitions Tax (CAT)

A CAT is levied on assets passing on death and on lifetime gifts. A gift or inheritance will be subject to CAT if either the donor or the beneficiary is resident or ordinarily resident in Ireland, irrespective of domicile status. Gifts or inheritances of assets situated in Ireland are also subject to CAT regardless of the residence status of the donor or beneficiary. The beneficiary generally bears the liability for the tax, and self-assessment rules apply.

Property taxes

Local Property Tax (LPT), payable in respect of residential properties, operates through a system of self-assessment. The following persons are liable to pay LPT:

• Owners of Irish residential property, regardless of whether they live in Ireland or not.
• Local authorities or social housing organisations that own and provide social housing.
• Lessees who hold long-term leases of residential property (for 20 years or more).
• Holders of a life-interest in a residential property.
• Persons with a long-term right of residence (for life or for 20 years or more) that entitles them to exclude any other person from the property.
• Landlords where the property is rented under a short-term lease (for less than 20 years).
• Personal representatives for a deceased owner (e.g. executor/administrator of an estate).
• Trustees, where a property is held in a trust.

Where none of the above categories of liable person applies, the liability falls on the person who occupies the property on a rent-free basis and without challenge to that occupation.

LPT charge is based on the valuation of one’s property as at 1 November 2021. The valuation of one’s property on this date determines one’s LPT charge for each year to 2025. The liability date for LPT is 1 November each year.

If one is the liable person in respect of the property, one is responsible for completing and submitting the return and paying the tax due. For LPT purposes, residential property means any building or structure (or part of a building) that is used as, or is suitable for use as, a dwelling and includes any shed, outhouse, garage, or other building or structure and includes grounds of up to one acre.

If a liable person fails to submit a return, the Irish Revenue can estimate the LPT due. A rate of 8% per annum will be charged on the amount outstanding. A maximum penalty of EUR 3,000 will be imposed for failure to submit a return or for knowingly undervaluing property to reduce LPT payable. Where the LPT remains outstanding, a charge will attach to the property. Chargeable persons for income tax/corporation tax/CGT, who are also designated liable persons for LPT, may incur an LPT generated surcharge of 10% of their income tax/corporation tax/CGT liability, where the LPT return is outstanding or agreed payment arrangement is not being met at the date of filing the income tax/corporation tax/CGT return. There are a limited number of exemptions available.

Vacant Homes Tax (VHT)

VHT was amended in Finance Bill 2023. VHT applies to residential properties occupied for less than 30 days in a 12-month period. The tax will be charged at a rate of five times the basic rate of LPT applying to the property and will be a self-assessed tax.

Luxury and excise taxes

EU harmonised excise duties are chargeable on mineral oil products and electricity, alcoholic beverages, and tobacco products sold for consumption in Ireland (regardless of whether produced in or imported into Ireland). Ireland also has national excises on the registration of vehicles (VRT) and on sugar sweetened drinks (SSDT).

Environmental taxes

From an environmental perspective, there are carbon taxes chargeable on mineral oils, natural gas, and solid fuels. There is an environmental levy on plastic bags supplied for use at the point of retail sale. In addition, Ireland has recently legislated for a new 'latte levy' on supplies by retailers of single-use cups used to contain hot beverages although this has not yet been enacted. The European Union has also introduced its new Carbon Border Adjustment Mechanism (CBAM), which will ultimately mean additional costs when importing certain carbon-intensive goods into the European Union. However, these additional costs do not enter into force until 2026.

Stamp duty

Stamp duty is a tax on instruments. It is payable on transfers of land and on other assets where legal title cannot be passed by delivery. It is also chargeable on all instruments of transfer executed in Ireland, and on instruments, wherever executed, which relate to Irish property or to any matter done or to be done in Ireland.

Stamp duty rates of 1% to 2% apply for residential property (but a 10% rate applies to the bulk purchase of 10 or more residential units [situated in Ireland], other than apartments, in a 12-month period). A 7.5% rate of stamp duty applies to transfers of non-residential property, such as land, commercial buildings, and various business assets.

Stamp duty is levied at 1% on most transfers of Irish shares, where the value of the shares exceeds EUR 1,000. Higher rates of 7.5% and 10% can apply to certain transfers of shares deriving value from non-residential immovable property or from residential units, other than apartments, bought in bulk.

A 1% stamp duty/levy applies to life insurance premiums, and a 3% rate applies to non-life premiums. In addition, a fixed stamp duty of EUR 1 applies to an insurance policy, other than life insurance, relating to risks located in Ireland.

Domicile levy

A domicile levy of up to EUR 200,000 was introduced with effect from 1 January 2010.

This levy applies to individuals who are Irish domiciled in the relevant tax year, irrespective of their tax residence position. It will apply if an individual has:

• worldwide income (as defined) exceeding EUR 1 million
• a liability to income tax in Ireland of less than EUR 200,000, and
• Irish located property with a market value in excess of EUR 5 million on the valuation date (i.e. 31 December in the relevant tax year).

The domicile levy must be paid on a self-assessment basis, and any Irish income tax paid will be allowed as a credit against the levy, provided such tax has been paid at the same time or before the levy for the year is paid. Individuals liable to this levy must file a return and pay the appropriate levy by 31 October following the valuation date. However, Irish Revenue may issue a notice where they have reason to believe an individual is liable to the levy, requiring the delivery of a domicile levy return and payment within 30 days of the date of the notice.