Written answers
Thursday, 29 May 2025
Department of Finance
Tax Collection
Cian O'Callaghan (Dublin Bay North, Social Democrats)
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62. To ask the Minister for Finance the action he is taking to address the falling number of tax exiles paying the domicile levy; and if he will make a statement on the matter. [27618/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Domicile Levy was introduced in the Finance Act 2010. The purpose of the levy is to ensure that Irish domiciled individuals with substantial income and assets located in the State contribute to the exchequer.
I am advised by Revenue that ‘tax exile’ is not a defined term for the purposes of the Domicile Levy. The levy applies to a “relevant individual”, which means an individual:
- who is domiciled in Ireland in the tax year,
- whose world-wide income in the tax year exceeds €1m,
- whose liability to Irish income tax in the tax year is less than €200,000, and
- who owns Irish property on 31 December in the tax year where the market value of that property is greater in value than €5m.
There has never been a large volume of taxpayers subject to the Domicile Levy. There has been a reduction in the number of taxpayers paying the levy since the Domicile Levy was introduced in Finance Act 2010. However, as individuals who have paid Irish Income Tax in a relevant year of at least €200,000 are not liable to the Domicile Levy, it is not an indicator of non-compliance. Revenue actively monitors compliance for taxpayers liable to the Domicile Levy through a Domicile Levy compliance project.
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