Domicile, Tax Residence, Ordinary Residence

Domicile is a legal concept. In most cases an individual’s domicile will be the country where he or she was born. This is known as the person’s domicile of origin.

An Irish domicile of origin will remain with an individual until such time as a new domicile of choice is acquired. However before that domicile of origin can be shed there has to be clear evidence that the individual has demonstrated a positive intention of permanent residence in the new country, has entered that country and has abandoned the idea of ever returning to live in Ireland.

Tax residence

An individual is regarded as tax resident for a particular tax year if present in Ireland

* for 183 days or more in that year, or
* for 280 days or more in that and the preceding year combined, including at least 30 days in each year.

With effect from the 2009 tax year, an individual will be regarded as present in the State for a day if present for any part of a day. Previously days were counted only where the individual was present in Ireland at midnight ending that day.

Ordinary Residence

An individual is ordinarily resident in Ireland if he has been resident in Ireland for 3 consecutive tax years and he continues to be so ordinarily resident until he has been non Irish resident for 3 consecutive tax years.

An individual who arrived in Ireland on 1 February 2009 will not have established ordinary residence until the tax year 2012.

Tax Year Resident Ordinarily Resident
2008 No No
2009 Yes No
2010 Yes No
2011 Yes No
2012 Yes Yes

 

An individual who is ordinarily tax resident in Ireland in 2009 will not cease being ordinarily resident in Ireland until 2013.

Tax Year Resident Ordinarily Resident
2009 Yes Yes
2010 No Yes
2011 No Yes
2012 No Yes
2013 No No

 

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Aileen Keogan | Solicitor & Tax Consultant | 21 The Avenue | Louisa Valley | Leixlip | Co. Kildare | Ireland

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