Social security taxGift, wealth, estate, and/or inheritance taxReal estate taxSales/VAT taxUnemployment taxOther taxes
Social security tax
Are there social security/social insurance taxes in Ireland? If so, what are the rates for employers and employees?
An individual working in Ireland and his/her employer are required to contribute to the pay-related social insurance system (PRSI). There are three exceptions.
- An individual on temporary assignment from another EEA country who can prove he/she will continue contributing to the social insurance system in his/her home country.
- An individual on temporary assignment from a country with which Ireland has a reciprocal agreement who can provide a certificate of coverage from his/her home country.
- An individual on assignment for up to 52 weeks from a country not covered by either of the above and who is not employed by an Irish employer.
For 2012, employee PRSI contribution is payable at the rate of 4 percent up of employment income. In addition, in any week in which an employee is subject to full rate PRSI, the first EUR127 of weekly earnings is disregarded. Employees earning less than EUR352 per week are exempt from employees PRSI.
Employer PRSI contributions are uncapped and levied at a rate of 10.75 percent on all taxable employment income including benefits-in-kind (but excluding certain share related benefits).
In the case of a foreign employee resident but not domiciled in Ireland and not covered by a reciprocal social security agreement, the employee PRSI contribution is payable at 4 percent on all employment income whether or not remitted to Ireland.
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Gift, wealth, estate, and/or inheritance tax
Are there any gift, wealth, estate, and/or inheritance taxes in Ireland?
Capital acquisitions tax in Ireland consists of a gift tax charged on lifetime gifts and an inheritance tax charged on property passing on death or gifts made by a person within the two years of his/her death. From 1 December 1999, a liability to Irish gift and inheritance tax can arise where either the donor or beneficiary is resident or ordinarily resident in Ireland. In addition, the gift or inheritance of all Irish situated assets remains within the charge to Irish capital taxes regardless of the residency position of the individual.
Foreign domiciled individuals will not be considered resident or ordinarily resident in Ireland for this purpose unless he/she or she have been resident in Ireland for the five consecutive tax years prior to the gift or inheritance. This legislation was introduced on 1 December 1999. Consequently, expatriates consecutively resident in Ireland since 1 December 1999 will fall prey to these rules from 1 December 2004.
It is worth noting that anti-avoidance provisions also exist to prevent Irish domiciled but non-resident individuals artificially changing the locality of Irish situated assets to avoid a tax charge.
There is an exemption for gifts received from an individual provided the annual value received does not exceed EUR3,000 per year. Lifetime exemption thresholds apply to gifts/inheritances and depend upon the nature of the relationship between the donor and beneficiary. The following are 2012 CAT threshold limits:
A flat rate of 30 percent applies to any taxable excess over the threshold.
From 6 December 2000, foster-children will be treated the same as other children for the purpose of gifts or inheritances, that is the Class A threshold will apply. In order to qualify for this equality of treatment, a fostered individual must have been cared for and maintained from a young age up to the age of 18 for a successive period amounting to five years. In addition, the individual must have resided with the donor (that is the foster parent) for this period.
From 1 January 2010 a domicile levy of EUR200,000 will apply to individuals:
- who are Irish-domiciled in the tax year. It should be noted that for the tax years 2010 and 2011, there was an additional requirement that the individual was also an Irish citizen for the levy to apply.
- whose worldwide income for the tax year is more than EUR1,000,000
- whose liability to income tax in the State for the tax year is less than EUR200,000
- whose Irish property has a market value on the valuation date in the tax year in excess of EUR5,000,000.
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Real estate tax
Are there real estate taxes in Ireland?
All residential property owners are liable for a property tax of EUR100. Owners of investment properties and second homes are liable for an additional property tax of EUR200. These annual taxes are payable to the local authority where the property is located.
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Are there sales and/or value-added taxes in Ireland?
Yes, there is VAT.
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Are there unemployment taxes in Ireland?
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Are there additional taxes in Ireland that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
There are no local taxes imposed on income of individuals in Ireland.
Stamp duty is payable on the acquisition of property in Ireland.
Stamp duty on residential property is applied at flat rate of 1 percent on property values up to EUR1 million and 2 percent on any amounts over EUR1 million.
From 6 December 2011commercial property attracts a rate of 2 percent stamp duty.