Ireland is going through a phase where companies are facing skills shortages in a number of
sectors such as IT, accounting and healthcare. Businesses are grappling due to the lack of
skilled employees, and are facing problems in productivity and growth. One way to alleviate
this problem is by bringing in international talent into the country to fill in skilled positions.
However, with the high marginal tax rates and the tax system being extremely progressive
starting from mid-level incomes, income tax will be a decisive factor when these individuals
consider relocating to Ireland. Furthermore, with Brexit just around the corner, Ireland has a
plethora of opportunities to attract skilled specialists into the country. Brexit will also be an
integral aspect of this research.
This research will primarily focus on the importance of a robust tax relief programme for
international workers in skilled jobs.
The primary qualitative research was obtained via six semi-structured interviews. Three
interviews were conducted with recruiters to understand the problems they and companies are
facing due to the skills shortage in Ireland. The other three interviews were conducted with
Irish expatriate tax experts to gather their views on the progressivity of the Irish personal tax
system and the tax relief programme in place for international assignees deputed on assignment
Conclusions and Recommendations
The findings of the research conclude that Ireland does have a progressive income tax system
and the marginal rates too are quite high. Even though the tax relief programme in place for
international workers deputed on assignment is a bright start, more needs to be done from a
tax relief standpoint for bringing in International talent into the country. Having a tax relief
scheme which targets individuals working right from mid-level positions to executive
positions is extremely important.