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The Special Assignee Relief Programme (SARP) is designed to encourage skilled workers to relocate to Ireland. It offers tax relief for qualifying employees who move to Ireland to work for a connected company. As regulations around SARP change, it is crucial for businesses to stay informed. As a trusted provider of taxation services, we help companies navigate these regulations. In this article, we will explain what SARP is, who qualifies, and how to apply.
What is the Special Assignee Relief Programme?
SARP allows qualifying employees to reduce their income tax by claiming a deduction on a portion of their salary. This relief is available for up to five consecutive tax years from the date of arrival in Ireland. SARP tax relief aims to attract top talent by lowering the cost of relocation for international employees.
Who Qualifies for SARP?
To qualify, employees must:
- Work for a company based in a country with which Ireland has a Double Taxation Agreement.
- Be employed by the company for at least six months before moving to Ireland.
- Not have been an Irish tax resident for the five years before moving.
- Earn a minimum of €100,000 in relevant income.
- Perform duties in Ireland for at least 12 consecutive months.
How to Calculate SARP Tax Relief
The amount of relief under the Special Assignee Relief Programme depends on when you arrived in Ireland. If you moved after 1 January 2023, you could claim relief on 30% of your income over €100,000, up to €1,000,000. For those who arrived after 1 January 2019, the threshold is €75,000. This relief only applies to Income Tax, so Universal Social Charge (USC) still applies to your full salary. You can claim SARP relief for up to five consecutive years.
Applying for SARP
To apply for SARP, employers must submit Form SARP 1A to Revenue within 90 days of the employee’s arrival in Ireland. Starting from 1 January 2024, this form can be certified online through the eSARP portal, which is accessible via the Revenue Online Service (ROS). If an agent handles submissions for the employer, they will need to have ‘Global Mobility’ permissions on ROS. If submitting online is not possible, a paper version of Form SARP 1A can be requested by writing to Revenue. For full details, refer to the Revenue guide for online SARP submissions.
Benefits of SARP
The Special Assignee Relief Programme offers various benefits, including:
- Reduced income tax for employees.
- One tax-free home leave trip per year for the employee and family.
- Tax-free payment of school fees up to €5,000 per child.
Special Assignee Relief Programme: Key Considerations
Businesses must ensure all conditions are met to qualify for SARP. This includes accurate record-keeping and timely submission of forms. Companies should also consider the concept of double materiality, assessing both financial and non-financial impacts of employee relocation.
The Special Assignee Relief Programme is an effective way for companies to attract global talent. By understanding the requirements and benefits, businesses can maximise tax relief and support employee relocation.
If your company needs help with SARP or other taxation services, our team is here to assist. Explore our website to learn more about our expert solutions.