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Taxation of pensions

  1. Overview
  2. Taxation of foreign pensions
  3. Taxation of German social insurance pensions
  4. Taxation of non-residents receiving a pension
  5. Tax-exempt pensions
  6. Taxation of retirement lump-sums
  7. Chargeable excess tax

Taxation of foreign pensions

In general, foreign pensions (including United Kingdom and United States pensions) are taxable sources of income in Ireland. They are liable to Income Tax and Universal Social Charge (USC), but not Pay Related Social Insurance (PRSI).

How is the tax on foreign pensions collected?

If you are a Pay As You Earn (PAYE) taxpayer, you must tell Revenue if you are receiving a foreign pension. We will reduce the annual tax credits and rate band on your Tax Credit Certificate to take account of it.

If you are self-employed, you must include details of the pension on your Income Tax Return (Form 11). You must pay the tax due when making your annual Income Tax payment.

Note

Foreign State pensions are not liable to USC.

Some foreign pensions are not taxable in Ireland. For example, foreign occupational and social security pensions which would not be taxable if the recipient lived in the country that granted the pension.

  • Example

    Martin is living and working in Ireland. During the year he is in receipt of an occupational pension from the United Kingdom worth €10,000.

    Martin must include details of this pension in his 2024 Income Tax Return (Form 11) and pay the tax due. If Martin's total income is less than, or equal to, the exemption and marginal relief limits, he may not have to pay Income Tax. This rule applies if he or his spouse or civil partner is 65 years or older.

    As Martin's income is under the USC exemption limit of €13,000, USC is not due. If Martin is or becomes a PAYE taxpayer, he must tell Revenue that he is receiving income from a foreign pension. Martin's annual tax credits and rate band, on his Tax Credit Certificate, will be reduced to take account of the tax payable.

Next: Taxation of German social insurance pensions

Published: 30 August 2024 Print this page

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