The Finance Bill gives effect to the budget measure to charge a levy on high-net worth Irish citizens who are non-resident. The levy applies to Irish citizens with annual worldwide income over €1 million who are Irish-domiciled and who own property valued at over €5 million in the country.

Provided such individuals pay less than €200,00 in Irish income tax, they will pay an annual levy of €200,000, regardless of where they live or where they are tax resident.

“The budget announcement stated that a new domicile levy would be introduced for Irish citizens who are resident abroad. The Bill has confirmed that to the extent such individuals have an Irish income tax liability, that liability will reduce their €200,000 domicile levy,” said Jim Ryan, a tax partner at Ernst Young. The Revenue will be given the power to value a person’s property to establish if they are liable for the domicile levy.