Regime Rate
30%
of income above €100,000 exempt
Standard Top Rate
40%
without this regime
Duration
Up to 5 years
tax years of assignment
Target Profile
Assigned senior employees
Ireland
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under SARP
€36,000
Standard Rate
€60,000
Annual Saving
€24,000
Eligibility Requirements
Who qualifies?
- Employed by a relevant employer (Irish, EU, or tax treaty country employer)
- Assigned to work in Ireland for minimum 12 months
- Not been Irish tax resident in 5 years before the assignment
- Annual employment income must be €100,000+ to access the relief
- Must perform duties for the relevant employer in Ireland
How the Regime Works
Full details
SARP relief = 30% × (income − €100,000). The relieved amount is exempt from income tax (40%) but remains subject to USC (4.5–8%) and PRSI (4%). Additional benefits: school fees for children may be paid tax-free up to €5,000/child; one home trip per year tax-free. The relief must be claimed via the annual tax return. Duration: year of arrival + 4 subsequent years.
Regime vs Standard Rates in Ireland
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income tax on €200k salary | €40k @ 40% | €12k saving (relief on 30% of €100k) | €12,000/year |
| USC | 4.5–8% | 4.5–8% (unaffected) | Full USC applies |
| PRSI | 4% | 4% (unaffected) | Full PRSI applies |
| Corporate Tax | 12.5% | 12.5% | Ireland's key rate |
| VAT | 23% | 23% | Unaffected |
Frequently Asked Questions
Who qualifies for the SARP?
The SARP is available to senior employees assigned to ireland from abroad by their employer. Key requirement: employed by a relevant employer (irish, eu, or tax treaty country employer). The regime lasts Up to 5 years.
How much tax do I save with the SARP?
On a gross income of €150,000, standard Ireland income tax is approximately €60,000 (40% top rate). Under the SARP, it is approximately €36,000 — a saving of €24,000/year. Actual saving depends on income composition and individual circumstances.
How do I apply for the SARP?
Applications for the SARP are submitted to the Ireland tax authority, typically within the first year of establishing residency. You will need proof of prior non-residency, evidence of qualifying activity or income, and valid residency documentation. A qualified local tax advisor is strongly recommended for the application process.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.