How to declare a foreign pension to Revenue in Ireland

What it is

When you live in Ireland, pensions paid from abroad (state, company or private) are usually taxed in Ireland, because you're tax resident here. Double tax agreements between Ireland and the paying country decide who taxes what: some pensions are only taxed in the paying country, and some aren't taxed in Ireland at all.

Foreign state pensions pay income tax but not USC. Foreign pensions never pay PRSI.

Which way to declare it?

• You also have a job or Irish pension taxed under PAYE, and your foreign pension is small (net under €5,000 and gross under €30,000 a year): tell Revenue in myAccount. Revenue then reduces your tax credits so the tax is collected through your Irish pay or pension.
• Otherwise (only foreign income, or more than those amounts): you're a chargeable person. Register for self-assessment and file a Form 11 each year.

Before you start

You'll need:

• Your PPS number and access to myAccount or ROS.
• Statements of your pension payments for the year, converted to euros.
• Proof of any tax deducted abroad.

Steps

1. Find out how each pension is taxed under the agreement between Ireland and the paying country (Revenue publishes the agreements).
2. If you're a PAYE taxpayer with a small foreign pension, add it in myAccount (Manage your tax), and file the end-of-year return when asked.
3. If you're a chargeable person, register for income tax (self-assessment) in myAccount or ROS.
4. File Form 11 and pay by 31 October for the year before (a little later if you file on ROS).
5. Claim credit for tax already paid abroad, where the agreement allows.

Cost

Declaring is free. An accountant charges for their help.

Common pitfalls

• Assuming tax taken abroad settles it. You still declare it in Ireland and claim the credit.
• Paying USC on a foreign state pension. It isn't due.
• Missing the first year. Your first year here may be a split year: Revenue's Moving or returning to Ireland pages explain it.

When to ask a helper

Ask someone with a pension from the same country who declared it recently: they'll know how the agreement treated it and what Revenue asked for.