Special Assignee Relief Programme (SARP) – Ireland

30% of income between €125,000 and €1,000,000 is exempt from income tax. On €200,000 salary, exemption applies to €75,000 (€200k - €125k), saving €9,000 in income tax at 40% rate (€75k × 30% × 40%).

Increased from €100,000 to €125,000 for new claimants from January 1, 2026. Those already in SARP remain at €100,000 threshold. Must be basic salary excluding bonuses.

SARP relief caps at €1 million income. On €1M salary, maximum exemption is €875,000 × 30% = €262,500 exempt, saving ~€105,000 in income tax.

Relief available for 5 consecutive years from arrival (or from year after arrival if not tax resident in arrival year). Extended to 2030 in Budget 2026. No renewal after 5 years.

SARP exempts income from income tax only. You still pay full USC (up to 8%) and PRSI (4.35%) on the exempt portion. Total effective saving is 40% (or 20%) on exempt amount.

Relief applies to total remuneration including benefits-in-kind (company car, health insurance, etc.), not just basic salary. This increases total benefit.

SARP claimants automatically become 'chargeable persons' requiring annual Form 11 filing, even as PAYE employee. More administrative burden but necessary for relief.

Must have worked for relevant employer (or associated company) outside Ireland for at least 6 months immediately before arrival. No Irish workdays in this period (minor exceptions).

Must not have been Irish tax resident in 5 tax years preceding arrival year. Returning Irish citizens can qualify if they meet this condition.

Must be Irish tax resident for all years claiming SARP. Typically achieved by spending 183+ days in Ireland per tax year.

Must perform employment duties in Ireland for at least 12 consecutive months from arrival. Revenue requires at least 1 Irish workday per month in first 12 months.

Employer must be incorporated and tax resident in country with Irish double taxation treaty or EU member state. Covers most major economies worldwide.

Employer must complete and submit Form SARP 1A to Revenue within 90 days of employee's arrival. Critical deadline - late submission means no relief.

If Form SARP 1A submitted between 90-180 days after arrival, only 4 years relief granted (instead of 5), starting from year after arrival. Better than nothing!

Employee must obtain PPSN before application. New statutory requirement. Apply online or at local social welfare office.

Employer must file annual SARP return by June 30 following tax year (extended from February 23 in 2026). Details all SARP employees and employment impact.

One return trip per year between Ireland and country of origin tax-free for employee, spouse, and children. Employer reimbursement or payment is exempt from tax.

Employer payments up to €5,000 per year per child for school fees in Ireland are tax-free. Significant benefit for families with children.

Cannot claim SARP simultaneously with: Foreign Earnings Deduction (FED), Research & Development Relief (R&D), or Remittance Basis for foreign income. Must choose most beneficial.

Income eligible for Foreign Tax Credit under double taxation treaty cannot receive SARP relief, even if credit not claimed. Can significantly reduce benefit for certain RSUs and equity.