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A Guide For Foreign Workers Coming To Ireland
In recent years, Ireland has gained a remarkable ranking as a desirable location for work, and among the largest number of people searching for jobs in Ireland come from foreign countries such as France, Canada, India, the U.S. and the UK.
Dublin, in particular, has a reputation as a young, vibrant and fun place for international workers to live and work in. Some of its most popular job sectors include marketing, quantity surveying and pharmacy.
In the past, there have been a high percentage of local jobseekers searching for work overseas. But with the economy getting back on its feet, Ireland has become a more attractive destination for foreign workers, especially now that there are a lot of highly skilled jobs that need to be filled. Are you also interested of working in Ireland?
To help make your stay smoother and less complicated, there are certain things you should know about living in Ireland.
On Taxation
Whether you are resident, ordinarily resident, and domiciled in Ireland for tax purposes, you will be generally charged Irish tax on your worldwide income or those that arise within a tax year. If you are non-resident and not ordinarily resident in Ireland, tax will only be charged on your income from Irish sources. To avoid any confusion on your taxes, it is important that you determine your residence status.
- You are considered a resident if you spend 130 days or more in
a particular tax year. The same thing is true if you spend a total
of 280 days or more over a period of two consecutive tax
years. - To become ordinarily resident in Ireland, you have to be in the
country for 3 tax years. On the fourth year, you will be considered
ordinarily resident.
The good news is there is a double taxation agreement that exists between Ireland and over 80 countries, including Australia, Canada, Finland, Germany, Italy, Malaysia and the U.S.A. If you are domiciled in a country that has a double taxation agreement with Ireland, you do not need to pay tax in both countries on the same income.
Whatever income you earned prior to the beginning of the tax year that you become resident in Ireland will also be exempt from tax. But if you bring that income into Ireland and there is no double taxation agreement, it will be taxable.
If your income is paid abroad, tax liability will depend if a double taxation agreement exists, and whether you are an ordinarily resident or a resident for Irish tax purposes. If you are a resident in the year that your income is earned, you are entitled to personal tax credits and reliefs.
If you are just taking up temporary employment and will not become a resident for tax purposes, proportionate credits and reliefs are available, but only for nationals that come from a country with a double taxation agreement with Ireland.
On Social Insurance
To qualify for payments on social welfare compensations, such as Illness Benefit and Jobseeker’s Benefit, you would have to pay for social insurance contributions. Pay Related Social Insurance, as it is also called, is deducted directly from your pay by your employer.
How much you have to pay will depend on your employee category and your earnings. Most workers pay Class A contributions.
Before you can start working, you must obtain a Personal Public Service number from your local social welfare office. You must present your passport or Garda National Immigration Bureau certificate of registration, and other supporting documents.