Determining a Beneficiaries Residence

Is the beneficiary resident or ordinarily resident in Ireland?

You will need to determine if the beneficiary is a resident of Ireland, usually if someone has a PPSN they are a resident of Ireland. However, there can be some special cases where someone may be a resident be a resident without a PPSN.

It is important t to note that all beneficiaries will need a PPSN and this should be dealt with as soon as possible as the probate will not be able to progress until all beneficiaries have a PPS, refer to this article here to get a PPSN for beneficiaries. 

When determining residency there are three types; resident, ordinarily resident or non-resident. 

1. Resident

You are considered resident of Ireland if you:

• Spend 183 days or more in Ireland in a tax year, OR

• Spend a combined total of 280 days or more in Ireland over two tax years (with a minimum of 30 days in each year)

Example: Sarah spent 190 days in Ireland during 2023 which made her resident in Ireland for tax purposes that year. Another example is Michael, who spent 150 days in Ireland in 2023 and 140 days in 2024, making him a resident in Ireland for the current tax year as he exceeded the combined two-year threshold of 280 days.

2. Ordinarily Resident

You are considered ordinarily resident if you:

• Have been resident in Ireland for three consecutive tax years

• You maintain ordinary residence status for three years after you leave Ireland

Example; Maria moved from Spain to Ireland in 2018 and has lived there continuously since then. By 2021, she became ordinarily resident since she completed three consecutive tax years of residence. If she leaves Ireland in 2024, she will remain ordinarily resident until 2027 (maintaining this status for three years after departure).

3. Non-Resident

You are considered non-resident if you:

• Spend less than 183 days in Ireland in the current tax year

• Do not meet the combined two-year test of 280 days

• Have not been a resident of Ireland in recent years 

Note: It is possible to be a resident of more than one country. For example, if Sarah lives in Ireland for 190 days in 2023 (making her Irish tax resident) but also spends 185 days in Spain (meeting their residency requirement), she would be considered a tax resident of both countries, (though tax treaties between the countries would determine how her income and assets are taxed to avoid double taxation.)

Important Considerations for Beneficiaries

• You will need an Irish PPSN please refer to this article here on how to get one 

• You may be liable for Capital Acquisition Tax (CAT) and may need to submit a CAT tax return. 

Additional Assistance

If you need help determining your status, consider:

• Consulting with a tax advisor

• Contacting Revenue Ireland for guidance

• Asking your solicitor 

Please Note: Accurate determination of your residency status is crucial for proper inheritance tax compliance. When in doubt, seek professional advice to ensure you make the correct declaration.