The number of wealthy individuals paying Ireland’s Domicile Levy fell to 13 in 2024, resulting in lower tax receipts for the Exchequer, according to new figures released by Tánaiste and Minister for Finance Simon Harris.
Data compiled by the Revenue Commissioners shows the levy generated €2.07 million last year, down from €2.93 million in 2023 when 18 individuals paid the charge. The latest figures indicate each taxpayer paid an average of €159,789 under the levy in 2024, compared with an average payment of €162,828 the previous year.
The Domicile Levy was introduced in 2009 by the late Finance Minister Brian Lenihan during the financial crisis. It was designed to ensure that wealthy Irish-domiciled individuals living abroad, who paid little or no Irish income tax, would still contribute to the State’s finances during a period of severe economic pressure.
Since its introduction, the levy has generated €43.4 million for the Exchequer between 2010 and 2024. Over the 15-year period, a total of 308 individuals have paid the tax, with the average payment standing at €140,924.
The levy delivered its strongest return in its first year of operation in 2010, when 37 individuals contributed a combined €4.8 million. In 2011, 33 taxpayers paid €4.7 million. Since then, annual revenue from the measure has exceeded €3 million on only three occasions, reflecting a gradual decline in both the number of liable individuals and the overall amount collected.
The 13 people who paid the levy in 2024 represent the joint second-lowest annual total since the tax was introduced.
In a written parliamentary reply to Labour TD Ged Nash, Simon Harris said the purpose of the Domicile Levy is to ensure that Irish-domiciled individuals with substantial wealth and assets in the State make an appropriate contribution to public finances.
To qualify for the levy, an individual must meet three conditions. Their worldwide gross income must exceed €1 million, they must own Irish property worth more than €5 million, and their annual Irish income tax liability must be less than €200,000.
Although the levy is set at €200,000 per year, taxpayers do not always pay the full amount because they receive a credit for Irish income tax already paid. For example, someone who pays €150,000 in Irish income tax during the year would only owe an additional €50,000 under the levy. If their income tax liability reached €195,000, the levy payable would fall to €5,000.
The rules governing the levy have also been tightened since its introduction. Former Finance Minister Michael Noonan removed a provision that limited the charge to Irish citizens after concerns that some individuals could avoid liability by renouncing their citizenship. The amendment extended the levy to all Irish-domiciled individuals who meet the qualifying criteria, regardless of citizenship status.
