The Special Assignee Relief Programme (SARP) has been extended for a further five years, to 31 December 2030. This extension reaffirms the Irish Government’s commitment to maintaining Ireland’s competitiveness in attracting highly skilled international talent and foreign direct investment (FDI).
However, a key change announced in Budget 2026 is that, for individuals claiming SARP for the first time in 2026, the minimum basic salary threshold will increase from €100,000 to €125,000.
This was an unexpected change and will likely reduce the number of individuals qualifying for SARP from 1 January 2026 onwards
Transitional Provisions and Payroll Implications
While we await further clarity on any transitional provisions, our current understanding is that:
- Individuals already availing of SARP under the existing regime will remain subject to the €100,000 threshold; and
- The new €125,000 threshold will apply only to new entrants from 2026.
For employers operating SARP through payroll, this will mean that the SARP calculation may differ by employee, depending on their arrival date and year of qualification, thereby adding complexity to payroll withholding and reporting obligations.
Administrative Simplification
It was also announced that administrative requirements for SARP will be simplified in the coming period, easing the compliance burden on employers and making the application process more efficient. Details on these simplifications are expected to be released shortly and will be welcomed by both employers and assignees.
A boost for Irelands FDI
The continuation of SARP is a positive development for Ireland, reinforcing its reputation as an attractive destination for international talent. The increase in the qualifying salary threshold underscores the Government’s intention to target the relief at highly skilled professionals.
With Ireland set to experience a major rise in infrastructure and capital projects, estimated at €275 billion up to 2035, the largest investment programme in the State’s history, the demand for international expertise will be significant. Multinational companies are expected to leverage SARP as a key incentive when relocating skilled employees to Ireland.
Key Features of SARP
SARP provides income tax relief for qualifying individuals assigned to work in Ireland from abroad. The principal benefit is that 30% of income earned above €125,000 (previously €100,000) is exempt from Irish income tax.
To qualify, employees and employers must satisfy several specific eligibility conditions, including minimum assignment periods, pre-assignment employment history, and timely filing of SARP applications.
When successfully applied, SARP can deliver significant tax savings for key employees and reduce the cost to employers of assigning skilled staff to Ireland
Next Steps
We will continue to monitor for further guidance on transitional measures and administrative changes. In the meantime, employers should:
- Review existing SARP cases to identify those potentially affected by the new threshold.
- Consider assignment timing for employees expected to arrive around 2025–2026; and
- Prepare for possible payroll and compliance adjustments from January 2026.
For further information or to discuss how these changes may impact your business, please contact our Global Mobility team.
