In general all income arising from pensions is subject to taxation.
An occupational pension is subject to tax under the PAYE system in exactly the same way as your salary was taxed. However, if your pension comes from outside Ireland you will usually pay tax in a lump sum annually.
The State pension is subject to tax however, unlike occupational pensions, there is no system in place for deducting the tax at source. Instead the Revenue commissioner will use a number of ways to reclaim the amount due e.g. reducing your personal allowance and your tax credits. However, please note that many pensioners do not actually pay any tax because their income is too low.
For further information please visit the Citizens Information website Taxation of pensions section
Moving to Northern Ireland
If you move to Northern Ireland and you receive your pension from Republic of Ireland you may be exempted from Irish Tax due to the Double Taxation Agreement between Ireland and the UK. However, you may still be eligible for UK tax. Usually the Revenue Commissioners will notify your pension provider and instruct them not to deduct income tax at source (PAYE).
Moving to Ireland
Generally your pension will be taxed in your country of residence so if you are resident in the South and you receive your pension from the North, that income is generally taxable in the South. The tax is usually due to be paid annually in a lump sum.
Please also check the following Border People webpages for further information on cross border pensions
- Border People – Frontier Workers – State Pension [September 2008]
- Border People FAQs – Retirement and pensions
- Border People – Pensions in Ireland
- Department of Social Protection – Pensions Section Phone: 00353 (0)71 915-7100 or Lo-call: 1890-500-000.
- Citizen’s Information Board – Pensions
- Pensions Ombudsman of Ireland – www.pensionsombudsman.ie
- European Commission – Employment, Social Affairs & Inclusion – Pensions section
Page last checked: February 2016
This webpage is for general information purposes only and while we endeavour to keep it up-to-date, errors may occur. It is very important that you check with the relevant body to ensure the information is current and is applicable to your situation: – North / South
If you would like to suggest amendments or highlight new information that could be useful to others please don’t hesitate to get in touch.