Relocating talent to Ireland: Key tax and mobility considerations for employers

Start with the right payroll and reporting setup

Employers must operate Irish PAYE withholding and reporting for employees carrying out duties in Ireland, often from the first working day. Even if the employee is still paid via a foreign payroll, Irish payroll obligations can still arise.

In some cases, a shadow payroll may be needed to report Irish taxable income without duplicating salary payments. Understanding the thresholds and exemptions (like the 60-day rule for short-term visits) is key, but the safest approach is to engage early with Revenue and get your systems aligned.

PAYE withholding exceptions for temporary assignees: 

You may not need to operate PAYE where:

• The employee is present in Ireland ≤60 Irish workdays in the year when coming from a country which Ireland hold a Double Taxation Agreement (DTA) with or ≤30 Irish workdays when no DTA is in place.
• They remain employed and paid by a non-Irish company.
• No recharge of salary is made to Ireland.
• The employee is taxed in their home country on their Irish sourced income under a Double Taxation Agreement (DTA).
• You have obtained a PAYE Exclusion Order 

“Relocating employees to Ireland without understanding local tax rules can lead to avoidable payroll and compliance issues. With the right planning, employers can manage costs, avoid risk, and support a smooth transition for their people”

Consider available reliefs such as the Special Assignee Relief Programme (SARP)

SARP is a valuable tool for reducing tax costs on high earners relocating to Ireland. It allows 30% of employment income above €100,000 to be exempt from income tax for up to five years.

Key eligibility criteria include:

• The employee must not have been tax resident in Ireland for the previous five tax years.
• They must earn over €100,000 and arrive in Ireland to work for a connected company.
• A SARP employer application n must be filed by the employer within 90 days of arrival.

Structure benefits and reimbursements carefully

In certain cases, employers can reimburse relocation and temporary subsistence costs free from Irish tax, provided the costs are bona fide, supported by receipts, and within Revenue’s published limits.

Examples include:

• Reasonable temporary accommodation (up to 12 months)
• Travel and subsistence for a limited duration
• Certain removal and relocation expenses

Employers should ensure these reimbursements are carefully structed to meet Revenue’s tax-free criteria and to avoid triggering additional tax liabilities, for example by avoiding cash payments or unvouched per diems. 

Understand employee tax return and residency obligations

Many inbound employees will be required (or benefit from) filing an Irish tax return, particularly those claiming SARP or reimbursed expenses, or those with split-year residence.

Even if PAYE has been operated correctly, a return may still be needed to:

• Reclaim overpaid tax
• Report global income or gains (if Irish tax resident)
• Claim personal tax credits or deductions

Check social security coverage and PRSI position

If your inbound assignee remains insured in their home country (e.g. under an A1 certificate for EU assignees or a Certificate of Coverage from the US), they may be exempt from Irish social insurance (PRSI) contributions.

Obtaining and documenting this coverage before arrival is key. Otherwise, both employer and employee could face unexpected PRSI liabilities in Ireland.