Contracting In Ireland From Abroad

With Brexit and the growth of the Irish economy we are seeing an increasing volume of contractors entering the Irish market to take up lucrative and exciting contracts with dynamic companies operating out of Ireland. It is great to see an influx of talented and motivated people arriving from all over the Europe and the UK who are helping to drive the Irish economy onwards and upwards. However, one challenge they face is how they operate in Ireland as contractors. There seems to be a lot of confusion among agencies and certain umbrella companies on how to work with these contractors and how to deal with their individual tax requirements.

Your residence for tax purposes depends on the number of days that you are present in Ireland during a tax year (A tax year means the period from 1 January to 31 December).

You are resident for tax purposes for a year if:

  • You spend 183 days or more in Ireland in that year from 1 January – 31 December or,
  • If you spend 280 days or more in Ireland over a period of two consecutive tax years, you will be regarded as resident for the second tax year. For example, if you spend 140 days here in Year 1 and 150 days here in Year 2, you will be resident in Ireland for Year 2.

There are also certain other caveats that mean a contractor may be able to maintain this for longer periods – however it is very important to work with a qualified umbrella company or establish an Irish Limited company to ensure you stay within the parameters of the rules set down by Irish Revenue. Working with Accounting Pro we will be able to advise the how and why of this and will be able to advise how and when you can be transitioned to the Irish Revenue system whether under a PAYE Umbrella or a personal limited company (1 person contractor company). The requirement here is always be to keep the contractor client while also maximising their net income through writing off of all allowable expenses, pension contributions etc.

Accounting Pro is Ireland’s premier contractor accounting service.  We are here to help you, the busy contractor and/or company, with all your accounting and payroll needs. We are both an umbrella company and umbrella corporation and we can create your limited company. We are on your side, always. To learn more about what we do please review  and contact us by email: or phone us 01 6933370. For the UK see Accounting-Pro UK. “Contracting In Ireland From Abroad” is an article written by Accounting-Pro Ireland for the benefit of everyone. Feel free to share it but please give attribution on a CC BY-SA license.