Relocating for work can be both an exciting and challenging experience. Understanding the financial aspects, especially regarding relocation expenses and allowances, is crucial for a smooth transition. This guide provides an in-depth look at the tax-free expenses, allowances, and the processes involved when relocating within Ireland or from abroad.
| 20 November 2024 | Written by Doga |
Average Relocation Expenses
When planning a move for employment purposes in Ireland, it’s essential to understand the various expenses you may incur and how they can impact your budget. The following table outlines the key relocation expenses you might encounter.
| Expense Category | Description | Estimated Cost |
| Childcare Assistance | Costs for childcare services needed during the relocation process | €500 – €1000 per month |
| Home Sale or Lease Exit Fees | Expenses related to selling a home or terminating a lease early. Includes stamp duty, auctioneer’s and solicitor’s fees etc. | €1,000 - €5,000 |
| Moving, Packing, and Unpacking Services | Professional moving services costs include furniture removal, packing, and disassembly | €1,000 – €3,000 |
| Short-Term Housing | Temporary accommodation expenses while searching for permanent housing | €1,500 – €4,500 |
| Storage Expenses | Costs for storing household items during the relocation, includes insurance for items in storage | €200 – €600 per month |
| Travel Costs for House Hunting | Expenses incurred while traveling to the new location to find housing | €200 – €1,000 |
For a detailed breakdown of moving costs, visit our costs of moving house page.
What are the Tax-Free Relocation Expenses in Ireland?
You can receive tax-free repayments for removal and relocation expenses if the costs are genuine, necessary for your employment, within reasonable price limits, and properly documented.
Eligible Expenses for Tax Relief
- Auctioneer and Solicitor Fees: Costs associated with selling or buying a home.
- Stamp Duty: Taxes paid on legal documents during the purchase of a property.
- Removal of Furniture and Items: Costs of moving furniture, including packing services.
- Storage Charges: Temporary storage fees for household items.
- Insurance: Coverage for items you move or store.
- Travel Expenses: Costs incurred during your travels to the new location.
If your immediate family is also relocating with you, you may claim tax relief on their initial travel costs and accommodation expenses.
Non-Eligible Expenses for Tax Relief
- Mortgage Repayments: Cannot claim tax relief on buying a property.
- Bridging Loan Interest: Loans to finance a new home are excluded.
- Return Journeys: Costs for travelling back to your original location are not covered.
- Disturbance Money: Treated as salary and is taxable.
For a comprehensive list and detailed explanations, refer to the Revenue Commissioners’ removal and relocation expenses guidelines.
Subsistence Allowances
Subsistence allowance covers an employee’s daily expenses when temporarily away from home for work. In Ireland, you might be entitled to this allowance for temporary accommodation before finalising your move.
Temporary Subsistence Allowance
If you need to stay for up to 10 nights while searching for permanent accommodation, you can stay in a hotel at a rate of up to €147 or €167 per night, depending on the most recent rates. No receipts are required for these first 10 nights under the subsistence allowance. However, after the initial 10 nights, you are required to provide either a copy of your lease agreement if you are renting, or receipts if you continue staying in a hotel.
Rent Allowance
Once you’ve secured accommodation, you can claim a tax-free rent allowance for up to three months. For tax compliance, you may need to provide your landlord’s name and Personal Public Service (PPS) number. It’s advisable to keep all your relocation documents for six years. Remember, you cannot claim the rent allowance and the temporary subsistence allowance at the same time.
Calculate Your Relocation Costs with a Professional Moving Company
Obtain accurate estimates to effectively budget your move.
Relocating Within Ireland vs. From Abroad
Moving for a job within Ireland differs greatly from relocating internationally. Understanding these differences is essential for managing expenses.
Relocating Within Ireland
Relocation distance criteria is considered a move when it is 100 km or more. Your travel costs, including petrol/diesel expenses for the initial trip, are included, and allowances apply as per subsistence and rent allowances.
Relocating From Abroad
If you are relocating from abroad, all flights or ferry tickets for you and your immediate family members will be covered, along with temporary subsistence and rent allowances. Additionally, support may include assistance with work permits or visas, as well as costs related to cultural orientation and spouse employment support.
