The Special Assignee Relief Programme (“SARP”) was introduced in Ireland from 1 January 2012 and was designed to encourage the assignment of key talent within organisations to Ireland. SARP Relief is available for assignments during the tax years up to and including 2030. Below we analyse this relief and outline the criteria which must be satisfied by assignees arriving into Ireland post 1 January 2026.
SARP provides Income Tax relief for key employees who are assigned to work in Ireland from companies abroad. With effect from 1 January 2026, SARP is available for up to five consecutive tax years from first arrival.
In order to qualify for this relief, an employee must satisfy all of the following conditions:
• The employee must be assigned by a relevant employer to work in Ireland for that employer or an associated company. A relevant employer is a company that is incorporated and tax resident in a country with which Ireland has either a Double Taxation Agreement or a Tax Information Exchange Agreement (TIEA).
• The employee must arrive in Ireland to work in any of the tax years 2026 to 2030.
• Immediately before being assigned to work in Ireland, the employee must have worked outside of Ireland for a minimum of six months for the employer who assigned them to Ireland.
• The employee must perform duties for a minimum of 12 consecutive months from the date they are first assigned to Ireland.
• The employee must not have been tax resident in Ireland for each of the five tax years immediately preceding the tax year in which they arrive into Ireland to take up work.
• The employee must be tax resident in Ireland for each of the tax years in which they claim the relief.
• With effect from 1 January 2026, the employee must earn a basic salary of at least €125,000 per year. This amount excludes all bonuses, commissions or other similar payments, benefits or share-based remuneration.
• The employee must have a Personal Public Service Number (PPSN).
• The employer must complete a certification of the employee’s entitlement to this relief and submit this to Revenue within 90 days of the employee’s arrival into Ireland (relief will be restricted if this is submitted later than 90 days but within 180 days of arrival).
Where an employee qualifies for SARP, a claim can be made to have a portion of their employment earnings disregarded for Irish Income Tax purposes. If they arrive in Ireland after 1 January 2026, this portion is 30% of their income over €125,000, up to a limit of €1,000,000 (previously 30% of €100,000, up to a limit of €1,000,000)
The relief operates by providing a deduction for income tax purposes from remuneration based on the following formula:
(A-B) X 30% where:
• A = Qualifying Remuneration
Qualifying remuneration is total remuneration including other income such as benefits-in-kind, bonuses etc. Any employee contributions to an Irish approved pension plan or a foreign pension plan which are eligible for tax relief must be deducted from total remuneration before this relief is calculated. Furthermore, any remuneration eligible for double tax relief in Ireland must be deducted from total remuneration before calculating the relief.
• B= The annual threshold of €125,000 (prior to 1 January 2026, this was €100,000)
This relief applies to Income Tax only and is not extended to the Universal Social Charge (USC) or Pay Related Social Insurance (PRSI). Therefore, you will pay USC/PRSI on the full amount of your remuneration.
Example:
Michael arrived into Ireland on the 1st of January 2026 and satisfies all of the conditions outlined above in order to claim SARP relief. His base salary is €160,000, and he receives additional benefits in kind valued at €6,000.
A = €166,000
B = €125,000
SARP Deduction = (€166,000 - €125,000) = €41,000
€41,000 @ 30% = €12,300. Michael’s marginal tax rate in Ireland is 40%, so the income tax saving is €4,920 (€12,300 * 40%). USC and PRSI continue to apply to the income qualifying for the SARP deduction.
How to apply for SARP relief?
Where an employee is eligible for the relief, an employer must certify this eligibility by submitting a Form SARP 1A to Revenue within 90 days of the employee’s arrival into Ireland to perform the duties of their employment.
For employees arriving into Ireland after 1 January 2026, where an employer fails to submit this Form SARP 1A to Revenue within 90 days of arrival, but submits it within 180 days of arrival, the relief may not be claimed for the first year of residence in Ireland but it may be claimed for the following four tax years (four years maximum).
An employee can be granted this relief through their payroll or they can make a claim for relief at the end of the tax year. The employer can seek approval to grant relief through payroll, when applying for SARP Relief. Employees who have registered for this relief must file an Income Tax Return by the 31st of October following the end of the tax year.
Each employer must submit an annual return to Revenue by the 30th of June following the tax year detailing the following information for all employees qualifying for SARP:
• PPS Number
• Nationality
• Prior country of residence
• Job title
• Remuneration information (including any reimbursed school fees etc)
If you qualify for SARP, you are also entitled to receive certain tax-free travel expenses and costs associated with their children's education.
We at Accounting Bureau can provide you with invaluable tax advice surrounding SARP and what steps you need to take in order to secure this relief. Furthermore, we can assist you, as an employer, with any applications to Revenue. If you do require assistance in relation to this relief, we would be delighted to assist you.
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