SARP

Special Assignee Relief Programme (SARP) in Ireland: A Complete Guide

The Special Assignee Relief Programme (SARP) provides Income Tax relief to certain employees who are assigned from abroad to work in Ireland. It is designed to make Ireland an attractive location for international talent by reducing tax liabilities on qualifying assignments.

Revenue launched the eSARP Portal on 1 January 2024 via the Revenue Online Service (ROS), making applications and annual filings easier. The relief has been extended in Budget 2026 for five more years until 31 December 2030, with updated income thresholds and deadlines.

1. Who Qualifies for SARP?

SARP applies to employees who are:

• Assigned to work in Ireland by a relevant employer
• Tax resident in Ireland during the year the claim is made
• Earning a minimum salary threshold

Key Updates (Budget 2026)

SARP can also apply to returning Irish workers who have been outside Ireland for at least 5 years, and may provide relief for up to five consecutive tax years.

2. What is a ‘Relevant Employer’ and ‘Relevant Employee’?

Relevant Employer

A company is considered a relevant employer if:

• It is incorporated and tax resident in a country with which Ireland has a Double Taxation Agreement (DTA) or a Tax Information Exchange Agreement (TIEA)

Relevant Employee

To qualify:

• Must have been a full-time worker for a minimum of 6 months
• Must be assigned to work in Ireland for a relevant or associated employer

3. Conditions for SARP Relief

To qualify for SARP, the following conditions must be met:

• 12-month assignment in Ireland
• Minimum 6 months employment abroad with the assigning employer immediately before relocation
• Non-resident in Ireland for the previous 5 tax years
• Tax resident in Ireland during the year relief is claimed
• Basic salary over €100,000 (excluding bonuses, company cars, benefits-in-kind, share-based payments)
• Personal Public Service Number (PPSN) held
• Employer submits SARP application within 90 days of arrival

4. How SARP Works

SARP allows a portion of your income to be excluded from Irish Income Tax:

Important Notes:

• Universal Social Charge (USC) is not exempted—you must pay USC on the full salary
• Relief can be claimed for a maximum of five consecutive years
• Certain travel expenses and costs may also be received tax-free

Example: If your annual salary is €150,000 and you arrived in 2024, 30% of €50,000 (€15,000) may be excluded from Income Tax under SARP. USC is still due on the full €150,000.

5. Applying for SARP Relief

From 1 January 2024, applications are made through the eSARP portal in ROS using Form SARP 1A.

Employer Responsibilities:

• Submit the SARP application within 90 days of employee arrival
• Grant relief through payroll or allow employees to claim at year-end
• Submit annual employer returns via eSARP (from 2024 onwards)

Employee Responsibilities:

• Submit annual income tax returns for each year claiming SARP
• Ensure eligibility criteria are met

6. Risks and Considerations

While SARP offers significant tax benefits, consider the following:

• Incorrect claims can reduce overall tax relief
• Ensure SARP does not negatively impact other tax claims
• Always check thresholds, eligibility, and filing deadlines to avoid penalties

7. Summary Table: Key SARP Features

8. Recommendations

1. Ensure eligibility before applying to maximize relief
2. Submit applications via eSARP promptly
3. Coordinate with payroll to grant relief during the year
4. Maintain accurate records for annual returns
5. Consult a qualified Irish tax specialist to optimize outcomes

9. Conclusion

The Special Assignee Relief Programme (SARP) is a valuable tool for international employees assigned to Ireland. By reducing the taxable portion of qualifying income, SARP helps make Ireland a competitive destination for global talent.

Proper planning, timely application, and professional advice are crucial to maximize benefits and avoid compliance issues.

Disclaimer

This article is for general informational purposes only and does not constitute professional accounting, tax, legal, or financial advice. Individual circumstances vary, and Irish tax laws may change. You should consult a qualified Irish tax advisor before taking or refraining from any action based on this information. ST Tax accepts no liability for any loss or damage arising from reliance on this content.