Pensions and tax

Taxation of foreign pensions

In general, foreign pensions (including UK and US pensions) are taxable sources of income in Ireland. They are liable to Income Tax (IT) 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 you are receiving a foreign pension. We 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 Form 11. 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. These are foreign occupational and social security pensions that would not be taxable if the recipient lived in the country that granted the pension.

Next: Tax-exempt pensions