Split Year Residence Relief

What is Split Year Residence Relief? 

Split year residence is a tax relief in respect to the charging to tax of employment income in the year of an individual’s arrival to or departure from Ireland.  

For qualifying individuals, the scheme provides for the “splitting” of the year of arrival/departure into periods of deemed residence and non-residence, which has implications for the charging to tax of employment income for the year of arrival or departure.  

In summary, qualifying individuals are deemed to be resident only for the part of the year after arrival or prior to their departure from Ireland.   

The employment income which arises in this period of deemed residence is chargeable to Irish tax, however, the remaining part of the year (the periods spent outside Ireland) is treated as a period of non-residence with respect to the charging of employment income to tax and, as such, an Irish tax charge will not arise on employment income unless duties are performed in Ireland during this period. 

A key point of Split Year treatment is that it applies to employment income only and it does not extend to other forms of income. 

New Revenue Tax Manual published on Split Year Residence  

As of February 2025, Irish Revenue has released a new Tax and Duty Manual on Split Year Residence, offering more detailed guidance on this tax relief. The new manual incorporates changes to the claim rules introduced in the Finance Act 2024. 

What changes has the Finance Act 2024 introduced? 

The Finance Act 2024 introduces changes that enable individuals to self-assess their eligibility for split year residence and claim the relief in their income tax return for the applicable year. Previously, there was a requirement to satisfy an authorised officer (in writing) during their year of arrival in or departure however, this condition is no longer required.  

The changes introduced by the Finance Act 2024 will come into effect on 1 January 2026.  

As a result, the new treatment will first apply to employees who arrive in or depart from Ireland starting from 1 January 2025. As per Revenue’s example, if an employee arrives in or departs Ireland on 1 March 2025, they will claim Split Year Treatment in their 2025 Income Tax Return, which would be filed in October/ November 2026.  

As always, our tax team are here to help you wherever your journey may take you.