Pay
Foreign Earnings Deduction: tax relief for work trips to growth markets
Last updated 16 October 2026
Employees resident in Ireland who work at least 30 days a year in certain countries can deduct part of their pay from income tax. Up to €50,000 from 2026.
The Foreign Earnings Deduction (FED) rewards employees who travel to develop business in certain countries outside the EU. Part of your pay, in proportion to the days you work there, is deducted from your income for income tax. It does not reduce USC or PRSI.
Who qualifies
- you are an Irish-resident employee
- you work at least 30 qualifying days in a relevant state, in a tax year or in a continuous 12 months spanning two tax years
- you are there for business reasons connected to your job, not working remotely on a personal trip
You can't claim if you are a civil or public servant. You also can't claim if you get split-year treatment, the Special Assignee Relief Programme, Transborder Workers' Relief or the key employee R&D relief. The same applies if you are taxed on the remittance basis (taxed on foreign income only when it is brought into Ireland).
What counts as a day
From 2026 to 2030, any day spent working in a relevant state counts. Up to 2025, a day only counted if it was one of at least three consecutive working days there. Weekends and public holidays count, and so can travel days, if you arrive in the relevant state, or back in Ireland, the next day.
The relevant states
| Added | Countries |
|---|---|
| Since 2012 | Brazil, China, India, South Africa (and Russia to 2025) |
| Since 2013 | Algeria, the Democratic Republic of the Congo, Egypt, Ghana, Kenya, Nigeria, Senegal, Tanzania |
| Since 2015 | Bahrain, Chile, Indonesia, Japan, Kuwait, Malaysia, Mexico, Oman, Qatar, Saudi Arabia, Singapore, South Korea, Thailand, the United Arab Emirates, Vietnam |
| Since 2017 | Colombia, Pakistan |
| From 2026 | the Philippines, Türkiye |
How much
The deduction is your employment income × qualifying days ÷ days you held the job in the year (365 for a full year). It is capped at €50,000 from 2026 (€35,000 up to 2025). Income taxed in the other country under a tax treaty for those days is left out. For an employee on €110,000 who works 75 qualifying days in the Gulf states and Japan in 2026:
| €110,000 × 75 ÷ 365 | €22,602.74 |
| Deduction (under the cap) | €22,602.74 |
| Income tax without FED | €31,200.00 |
| Income tax with FED | €22,158.90 |
| Saving | €9,041.10 |
Claiming
FED is claimed on your Income Tax Return after the year ends, within four years: a 2026 claim by 31 December 2030. Keep the records behind it, such as travel itineraries and evidence of the business purpose, for six years. Revenue sets out the rules on its Foreign Earnings Deduction pages.
Work it out
Sources
- Revenue: Tax rates, bands and reliefs (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.