Tax in Ireland for expats depends on three separate tests: residence, ordinary residence and domicile. Someone who is resident and domiciled in Ireland is taxed on worldwide income and gains, while a resident who is not Irish domiciled is generally taxed on foreign income and gains only to the extent they are brought into Ireland, the remittance basis. For 2026, income tax is charged at 20% up to a standard rate band of €44,000 for a single person and 40% above it, with the Universal Social Charge (USC) on top, and Budget 2027, announced on 6 October 2026, proposes changes from 1 January 2027, subject to enactment. Capital gains tax was cut from 33% to 31% for disposals on or after 7 October 2026, while Irish funds and certain equivalent foreign funds sit in a separate exit tax regime with a deemed disposal every eight years. For British expats and Irish people returning from the UK or the Gulf, the UK and Ireland double taxation convention allocates taxing rights over UK pensions, interest and gains, alongside each country's domestic law, and UK rental income, UK property gains and UK inheritance tax can continue. This guide explains how Irish residence and domicile work, the 2026 rates, how investments are taxed, what the treaty says about UK pensions, and the points to plan before you arrive. It is general information, not personal tax advice. Irish figures are for the 2026 tax year (1 January to 31 December 2026) and UK figures for the 2026 to 2027 tax year unless another date is given, the information was reviewed on 12 November 2026, and all rules and figures should be rechecked before you rely on them.
Irish residence is decided each tax year, which in Ireland is the calendar year, under section 819 of the Taxes Consolidation Act 1997. You are resident for a tax year if you are present in Ireland for at least 183 days in that year, or for at least 280 days in total across that year and the previous year. If you are present for 30 days or fewer in a tax year, you are not resident for that year under the 280 day test and those days are ignored for it. Revenue's Tax and Duty Manual (Part 34-00-01) says you are counted as present for a day if you are in Ireland at any time during that day. You can also elect to be resident in the year you arrive if you satisfy Revenue that you intend to be resident in the following year, and an election cannot be withdrawn. Ordinary residence follows a longer pattern: you become ordinarily resident after three consecutive tax years of residence, and you stop being ordinarily resident only after three consecutive tax years of non-residence. That matters for people leaving Ireland too, because someone who is no longer resident but is still ordinarily resident and domiciled remains taxable on worldwide income, with exceptions that include income from a trade or employment carried on wholly abroad and other foreign income that does not exceed €3,810 in total. Split year relief under section 822 can apply to employment income in the year of arrival or departure, but it does not cover other income or gains.
Domicile is a general law concept, broadly the country you regard as your permanent home. Everyone has a domicile of origin from birth, and replacing it with a domicile of choice needs clear evidence of an intention to live permanently in the new country. Revenue's guidance states that a person who is resident or ordinarily resident but not Irish domiciled is taxed on foreign income and foreign capital gains only to the extent they are remitted to Ireland. The remittance basis does not apply to Irish income, Irish gains or employment income for duties performed in Ireland, which are taxable in full. A British national moving to Ireland will often keep a UK domicile of origin, so UK investment income and gains on UK shares may be taxable in Ireland only if brought into Ireland, while an Irish citizen returning home after years abroad will often, but not inevitably, be Irish domiciled and taxable on worldwide income and gains once resident. Domicile is a question of fact and intention, so it should be confirmed with an Irish tax adviser rather than assumed. Under Article 6 of the UK and Ireland treaty, where Ireland taxes income only on the amount remitted, UK treaty relief applies only to the amount remitted to or received in Ireland, so UK income kept outside Ireland can remain within UK tax. How funds held abroad are kept and moved can affect what counts as a remittance, so records and the order of transfers need planning before arrival.
For 2026, Revenue's tax rate bands are 20% on the first €44,000 of income for a single person, €48,000 for a single person qualifying for the Single Person Child Carer Credit and €53,000 for a married couple or civil partners with one income, increased by up to €35,000 where both have income, with 40% above those bands. The personal tax credit is €2,000 for a single person and €4,000 for a married couple or civil partners, and the employee (PAYE) tax credit and the maximum earned income tax credit are each €2,000. The USC is charged in addition on most income, and for 2026 its standard rates are 0.5% on the first €12,012, 2% on the next €16,688, 3% on the next €41,344 and 8% on the balance, with reduced rates for some people over 70 and medical card holders and a higher rate on some self-employment income above €100,000. PRSI, Ireland's social insurance contribution, is charged on employment income and can also apply to rental and investment income for some people under State Pension age. Budget 2027, announced on 6 October 2026, proposes from 1 January 2027 a standard rate band of €46,500 for a single person, €50,500 for a single person child carer and €55,500 for a married couple or civil partners, personal, employee and earned income tax credits of €2,125 each, and a 2% USC band ceiling of €30,300, with the 20% and 40% rates unchanged. These changes are being legislated in the Finance (No. 2) Bill 2026 and could change before enactment, so the final figures should be checked on Revenue's website for the year in question.
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Irish capital gains tax is charged at 31% on most gains for disposals on or after 7 October 2026, down from 33%, according to Revenue, with a different rate for development land. Each individual has an annual exemption of €1,270 of chargeable gains. CGT is paid on a two period basis: tax on disposals made between 1 January and 30 November is due by 15 December of the same year, and tax on disposals in December is due by 31 January of the following year, with a CGT return due by 31 October of the following year even if no tax is payable. An Irish resident and domiciled individual is taxable on worldwide gains, including gains on UK shares and property, while a non-Irish domiciled resident is taxable on foreign gains only when the proceeds are remitted, although Irish land and certain Irish assets are always within Irish tax. Irish CGT is charged by reference to the tax year in which a disposal is made, and split year relief does not apply to gains, so the timing of a sale in the year of arrival, and the treatment of gains that arose before arrival, need checking with an Irish tax adviser, and Article 14(6) of the UK and Ireland treaty preserves each country's right to tax, under its own law, gains of an individual who is now resident in the other country but was resident in the first country at any time in the three years before the disposal, alongside the UK's own temporary non-residence rules. Gains on a main home can qualify for principal private residence relief, depending on ownership, occupation, periods of absence and other conditions, so relief is not automatic.
Ireland taxes investors in Irish domiciled funds, including Irish ETFs, and in certain equivalent offshore funds in other EU or EEA states or OECD countries with which Ireland has a tax treaty, under separate exit tax rules rather than income tax and CGT, subject to the statutory scope rules: for Irish funds the tax is generally deducted by the fund, while for equivalent offshore funds the investor generally declares and pays it under parallel offshore fund rules. The rate for individuals is 38% in 2026, and Budget 2027 proposes a cut to 35%, with the effective date and scope to be confirmed in the enacted Finance (No. 2) Bill 2026 and Revenue guidance. Under these regimes, gains are generally taxed not only on sale but also on a deemed disposal every eight years, which can create a tax bill on unrealised growth, and losses arising within these regimes are generally restricted to them and cannot normally be set against capital gains on other assets. Classification depends on the fund's domicile, structure and regulatory status, so not every fund or ETF is treated the same way, and higher rates can apply to personal portfolio arrangements. For the relevant policies, the same 38% rate, with a proposed cut to 35%, applies to gains on Irish life assurance policies and on certain foreign life assurance policies issued in the EU, the EEA or OECD treaty states, while other foreign life policies and foreign investment products can be taxed under different rules and rates. Budget 2027 also proposed a new investment account, expected from 1 July 2027 subject to legislation and commencement, with an annual tax of 1% on value above €50,000 and outside the deemed disposal rules. For someone arriving with UK funds, UK ETFs or an investment policy taken out abroad, how each holding is classified in Ireland can change the rate, the timing of tax and the reporting required, so holdings should be reviewed with an Irish tax adviser before or soon after arrival. Whether any change to how investments are held is appropriate depends on individual circumstances, and advice may conclude that no change is suitable.
Irish deposit interest is generally subject to Deposit Interest Retention Tax (DIRT) at 33%, deducted by the bank. Revenue says foreign deposit interest received by an Irish resident is subject to income tax at the DIRT rate where it comes from the EU, but interest from outside the EU, which includes UK accounts, is taxed at the higher of the DIRT rate and your marginal income tax rate, so 40% for a higher rate taxpayer, and must be declared on a return. USC does not apply to deposit interest, although PRSI may. Under Article 12 of the UK and Ireland treaty, UK interest beneficially owned by an Irish resident is taxable only in Ireland. Dividends, including UK dividends, are taxed in Ireland at your marginal rate with USC and, where applicable, PRSI, and the treaty limits UK tax on dividends paid to Irish residents, although the UK generally does not withhold tax on dividends. Rental income from an Irish property is taxed at marginal rates after allowable expenses, and the purchaser of a residential property pays stamp duty at 1% up to €1 million, 2% on the portion from €1 million to €1.5 million and 6% above €1.5 million for instruments executed on or after 2 October 2024. Owners of Irish residential property also pay Local Property Tax.
Under Article 17 of the 1976 UK and Ireland double taxation convention, as published on GOV.UK, pensions and similar remuneration paid in consideration of past employment, and annuities, are taxable only in the country where the recipient is resident. Where you are resident in Ireland for treaty purposes, a UK workplace or personal pension is therefore generally taxable in Ireland, not the UK, and HMRC can be asked to pay it without UK tax through the treaty claim form for Irish residents, which Irish Revenue certifies first. Government service pensions, such as civil service, armed forces, police or teaching pensions from public employment, fall under Article 18 and are taxable only in the UK, unless the recipient is both resident in Ireland and an Irish national, in which case Ireland has the taxing right. Ireland has its own lifetime limit on tax-free retirement lump sums: Revenue says the €200,000 limit applies to retirement lump sums from all sources and that lump sums from foreign pension arrangements are taxed in the same manner, with amounts above it taxable, so a UK tax-free lump sum taken while Irish resident may have Irish tax consequences depending on the pension, the timing and the amounts involved, as our guide to UK pensions for residents of Ireland explains. For a non-Irish domiciled resident, the Article 6 remittance limitation means a UK pension kept outside Ireland may not get UK treaty relief, so the remittance basis and pension withdrawals need to be planned together. The UK State Pension can be paid to you in Ireland and, under current UK policy, it is generally uprated each year for people living in the EU, including Ireland, although future policy could change and entitlement depends on your own record. The 25% overseas transfer charge can apply to a transfer to a qualifying recognised overseas pension scheme (QROPS), a category of overseas scheme rather than a specific product. For transfers requested on or after 30 October 2024, when the broad exclusion for transfers within the EEA and Gibraltar was removed, it applies unless an exclusion applies, such as the member being tax resident in the same country as the receiving scheme, the receiving scheme being an occupational scheme where the member is an employee of a sponsoring employer, or certain international organisation and overseas public service schemes. The charge can apply later if a residence based exclusion stops applying during the relevant period after the transfer, broadly the rest of that tax year and the following five tax years, and a completed transfer is normally irrevocable. The standard Overseas Transfer Allowance, £1,073,100 for 2026 to 2027 and different where certain protections apply, is tested separately, and the overseas transfer charge and the tax on transfers above the allowance are alternative charges, not cumulative ones, as our guide to the Overseas Transfer Allowance and the 25% charge explains. A transfer can mean giving up UK scheme protections and involves costs, investment risk and currency risk, so it is not suitable for everyone, and retaining a UK pension is also an option. Whether to retain, transfer or access a pension depends on individual circumstances and needs personalised regulated advice.
UK residence is decided separately under the Statutory Residence Test. Split year treatment may apply in the UK tax year you leave, as our guide to the Statutory Residence Test and split year treatment explains, and keeping a home available in the UK can affect both UK residence and the treaty tie breaker in Article 4, which looks at your permanent home, then where your personal and economic relations are closer, then your habitual abode and then nationality. Moving to Ireland does not end UK tax on UK income. UK rental income remains within UK tax and the Non-Resident Landlord Scheme may apply, as our guide to the Non-Resident Landlord Scheme explains, with credit for UK tax given against Irish tax on the same income. A sale of UK property or land is within UK capital gains tax for non-residents, with a UK return generally due within 60 days of completion even where no tax is due, as our guide to selling a UK property as a non-resident explains, and the same gain can also be taxable in Ireland. The UK temporary non-residence rules can still apply: broadly, if you had sole UK residence for the whole or part of at least four of the seven tax years before the year you left and your period without sole UK residence lasts five years or less, certain gains and income realised while you were away can be taxed in the UK in the year you return, subject to the detailed conditions and exceptions in HMRC guidance. Irish people returning from the UAE or elsewhere in the Gulf move from a system with no personal income tax to worldwide taxation if they are Irish domiciled, so gains on assets held abroad, foreign bank interest and foreign rental income can come within Irish tax from the date residence begins, subject to any treaty relief and available reliefs. The timing and structure of transactions can affect tax outcomes, but any action requires advice in each country and may not be appropriate.
Ireland generally taxes gifts and inheritances on the recipient rather than charging an estate level tax: capital acquisitions tax (CAT) is charged on the person receiving a gift or inheritance, at 33% above a lifetime group threshold. Budget 2027 increased the Group A threshold, broadly for children inheriting from a parent, from €400,000 to €420,000, Group B from €40,000 to €44,000 and Group C from €20,000 to €22,000 for gifts and inheritances taken on or after 7 October 2026. A gift or inheritance is within CAT if the person giving it or the person receiving it is resident or ordinarily resident in Ireland, and Irish property is always within CAT. A person who is not Irish domiciled is not treated as resident or ordinarily resident for CAT until they have been resident in Ireland for five consecutive tax years before the year of the gift or inheritance and are resident or ordinarily resident on that date. Since 6 April 2025 UK inheritance tax on worldwide assets depends on long-term UK residence: broadly, someone UK resident for at least 10 of the previous 20 tax years, with that status continuing for between 3 and 10 tax years after leaving depending on residence history, while UK situs assets can remain within UK inheritance tax, subject to exemptions, reliefs and any treaty relief. From 6 April 2027, unused pension funds and certain death benefits are legislated to come within UK inheritance tax, as our guide to inheritance tax on pensions from April 2027 explains. The UK and Ireland have a separate convention on inheritance tax and CAT that can give credit where both apply, but relief is not automatic and depends on the assets and the people involved, and wills covering assets in each country should be reviewed with legal advice in each jurisdiction.
People moving to Ireland usually ask about the rates first, but residence, ordinary residence and domicile often matter more. Two people in the same household can be taxed quite differently, because an Irish citizen coming home is often taxed on worldwide income once resident while a partner with a foreign domicile may only be taxed on what is brought into Ireland. The arrival date and how savings are held before the move are usually among the first points to establish. This is general information, not personal advice, and whether any action is appropriate depends on your circumstances.
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Any part of a day in Ireland counts as a day of presence, and the 280 day test looks across two tax years, so short visits before a move can make you resident earlier than expected.
Becoming Irish resident does not make you Irish domiciled, and an Irish citizen returning home is often taxed on worldwide income once resident while a British national may be on the remittance basis.
For a non-domiciled resident, transfers of foreign income or gains into Ireland can be taxable remittances, and UK treaty relief under Article 6 can be limited to the amount remitted.
Revenue taxes non-EU interest, including UK interest, at the higher of 33% and your marginal income tax rate, and it must be declared because no DIRT is deducted.
Irish funds, including Irish ETFs, and certain equivalent offshore funds are taxed every eight years on unrealised gains under the exit tax regime, and losses within the regime cannot normally be set against other capital gains.
Revenue applies a €200,000 lifetime tax-free limit to retirement lump sums from all sources, including foreign pensions, so the timing of a UK lump sum relative to residence needs checking.
A common surprise for new Irish residents is that Irish funds and certain equivalent foreign funds may be taxed under exit tax or offshore fund rules rather than ordinary capital gains tax, which can mean tax on unrealised gains through a deemed disposal every eight years, and some foreign life policies and investment products are taxed under different rules again. How an existing portfolio is classified in Ireland can affect both the rate and the timing of tax. This is general information, not a recommendation, and any decision about investments needs individual advice.
Illustrative example only, not a real client. This example is simplified and fictional, applies the Irish rules for 2026 and the UK rules for 2026 to 2027 described in this guide as stated assumptions, ignores currency movements and costs, and is not a guarantee of any outcome. It does not describe advice given to any client, does not represent the experience of actual clients and does not illustrate a recommended course of action. Siobhan is an Irish citizen who grew up in Cork, and Mark is British with a UK domicile of origin. They have lived in Dubai for 12 years and plan to move to Cork in summer 2027, where Mark will work remotely for his Dubai employer for a period. They own a flat in Dubai, hold a portfolio of UK funds and shares in joint names, have savings in UAE and UK bank accounts, and Mark has a UK workplace pension from an earlier career. They assumed that, because they had paid no income tax in Dubai, their savings and investments would simply arrive in Ireland without any tax questions.
In this fictional example, a hypothetical review by a regulated financial adviser, working alongside Irish and UK tax advisers, might consider the following points on these assumptions. Their arrival date would decide whether they become Irish resident in 2027 under the 183 day test, and split year relief could apply to Mark's employment income for that year. Mark's salary for work done while in Ireland would be taxable in Ireland in full, even though paid by a Dubai employer, and the PAYE position would need to be addressed. Siobhan would probably be Irish domiciled, subject to confirmation, and taxable on worldwide income and gains once resident, while Mark might be taxable on foreign income and gains only when remitted, which would make the way their joint savings are held and transferred relevant. Gains on the Dubai flat and on their UK funds after they become resident could be within Irish tax, and the funds might fall within the exit tax and deemed disposal rules rather than CGT. UK bank interest would be taxed in Ireland at their marginal rate. Mark's UK pension would generally be taxable in Ireland under Article 17 once he is Irish resident for treaty purposes, subject to the Article 6 remittance point, and any tax-free lump sum would need to be considered against Ireland's €200,000 limit. No course of action is recommended.
Illustrative outcome only: this does not assess suitability or recommend any course of action, and no tax outcome, liability or saving is guaranteed. On these assumptions, the points that would need consideration include their residence and domicile positions in the year of arrival, how their UK funds would be classified in Ireland, the tax on interest, the timing of any sales, and the Irish treatment of Mark's pension and lump sum. Whether any change to their pensions, investments or the timing of their move would be appropriate is a separate question needing its own suitability assessment and tax advice, and advice may conclude that no changes are suitable. Different facts, such as Mark becoming Irish domiciled or a later move date, could produce a very different result.
Illustrative example, not a real client.
Clarity Global Wealth helps British expats and Irish people living abroad who are moving to Ireland, or already live there, understand how Irish and UK tax rules could apply to their income, pensions, investments and estate before they act. Clarity Global Wealth is an introducer that provides information and introductions only, does not itself give financial advice and does not assess the suitability of any product or course of action, and an introduction is not a recommendation. We can arrange a free introduction to regulated financial planning with a separate regulated financial adviser; the introduction is an initial conversation, not advice, does not itself create an adviser and client relationship, and places you under no obligation to proceed with advice or any product, so you can review your position with a regulated financial adviser where advice is appropriate. Any charges for advice would be explained to you before you proceed. The value of investments and pension funds can fall as well as rise, currency movements can affect values, tax treatment depends on individual circumstances and can change, and advice may conclude that no changes are suitable. Clarity Global Wealth does not provide tax, legal or accounting advice, and adviser comments in this guide are general information, not personal recommendations. Irish and UK tax returns, residence and domicile opinions and treaty claims are work for qualified tax advisers, so where that is needed we coordinate with them.
Related guides: UK Pensions for Residents of Ireland, Moving From the UK: The Statutory Residence Test, Returning to the UK After Years Abroad, The Overseas Transfer Allowance and the 25% Charge, The Non-Resident Landlord Scheme, Selling a UK Property as a Non-Resident, Inheritance Tax on Pensions from April 2027 and Tax in Hong Kong for Expats.
This guide is provided for general information only and reflects our understanding of the rules as at the date of publication. It is not personal financial, investment, pension or tax advice, and should not be relied upon as such. Rules and tax treatment can change and depend on your individual circumstances and country of residence. You should always seek regulated advice specific to your situation before taking action.
You are Irish resident for a tax year if you spend 183 days or more in Ireland in that calendar year, or 280 days or more across that year and the previous one. Years with 30 days or fewer are ignored for the 280 day test, and any part of a day in Ireland counts as a day.
For 2026 income tax is 20% on the first €44,000 for a single person and 40% above that, with USC charged in addition at rates up to 8%. Budget 2027 proposes a €46,500 standard rate band from 1 January 2027, which is not yet law and is subject to the Finance (No. 2) Bill 2026.
A person who is resident or ordinarily resident in Ireland but not Irish domiciled is taxed on foreign income and foreign gains only to the extent they are brought into Ireland. It does not apply to Irish income or to employment income for duties performed in Ireland.
Irish CGT is 31% on most gains for disposals on or after 7 October 2026, previously 33%, with an annual exemption of €1,270. Irish funds, certain equivalent offshore funds and certain life policies may instead be taxed under separate exit tax rules.
Under Article 17 of the UK and Ireland treaty, most UK workplace and personal pensions paid to someone resident in Ireland for treaty purposes are taxable only in Ireland. UK government service pensions are generally taxable only in the UK unless you are both resident in Ireland and an Irish national.
Yes. Under current UK rules, annual increases are paid to people living in the EU, and Ireland is an EU member, so a UK State Pension paid to you in Ireland is generally uprated each year, subject to future UK policy.
Ireland charges capital acquisitions tax on the person who receives a gift or inheritance, at 33% above a lifetime threshold. For gifts and inheritances from 7 October 2026 the threshold for children inheriting from a parent is €420,000.
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