Rates last updated: 29 October 2026 · How we verify
How Is Your Irish Pension Taxed if You Live Abroad?
It depends on the pension type. A private company pension paid as a pension is taxed only in your new country if Ireland has a tax treaty with it and you are non-resident in Ireland. ARF and vested PRSA withdrawals are taxed in Ireland at source wherever you live, and Revenue does not issue PAYE Exclusion Orders for them, so double tax is a real risk.
- Your new country usually taxes Irish company and State pensions; Ireland keeps taxing public sector pensions and deducts tax at source on ARF and vested PRSA withdrawals.
- Relief from Irish tax is never automatic: each pension type has its own route — PAYE Exclusion Order, Form IC2 or an ARF refund claim.
- The first €200,000 of retirement lump sums is tax-free in Ireland even if you live abroad, but your new country may tax it.
Already paid Irish tax on a pension while living abroad? Check if you're owed a refund. Planning ahead? Message us on WhatsApp — we'll explain how the rules work for each type of pension.
Who taxes which Irish pension when you live abroad?
- Your new country taxes Irish company and State pensions; Ireland taxes public sector pensions and deducts tax on ARF and vested PRSA withdrawals.
- Whether Irish tax at source can be stopped depends on the pension type and the treaty with your country of residence.
| Pension type | Where it is taxed | Can Irish tax at source be stopped? |
|---|---|---|
| Private sector company pension, you live in a treaty country | Your new country | Yes: the payer applies for a PAYE Exclusion Order |
| Private sector company pension, no tax treaty | Ireland | No |
| Public sector pension | Usually Ireland, whatever your residence | Depends on the treaty's Government Service article |
| ARF or vested PRSA withdrawal | Irish tax deducted at source, whatever your residence | No: Revenue does not issue Exclusion Orders for these funds |
| Irish State Pension | Your new country | Yes |
Whether you count as non-resident depends on the 183-day and 280-day tests — our tax residence checker works it out for your dates.
Why are ARF and vested PRSA withdrawals taxed in Ireland even if you live abroad?
- Since late 2017, Revenue treats ARF and vested PRSA withdrawals as payments out of a fund, not as a pension, so the pension article of most tax treaties does not shield them.
- Irish tax is deducted at source, and your new country may tax the same money again.
- Minimum withdrawals apply each year from age 61, starting at 4% of the fund, so the issue recurs every year.
- The practice changed at the end of 2017. Before then, Revenue refunded Irish tax on ARF withdrawals to non-residents who proved they were taxed abroad; that practice ended, and Revenue now looks at what the withdrawal is made up of (Crowe Ireland).
- Each withdrawal is split into income, gains and capital. Tax on income and gains that arose while you were non-resident can be reclaimed under the treaty; the capital part is refundable only if the treaty has a "capital" article, and relatively few Irish treaties do.
- HMRC takes the same view of ARFs. The UK's guidance treats Irish ARF payments as falling outside the pension article of the UK–Ireland treaty (HMRC DT9893).
- The issue repeats every year. Imputed minimum withdrawals apply from the year you turn 61, starting at 4% of the fund value, so Irish tax at source recurs annually.
Example (illustration; the split depends on your fund and treaty): a non-resident withdraws €20,000 from an Irish ARF, and Irish tax is deducted at source. Under Revenue's mixed fund rule, the year's income and gains count as paid out first and the rest as capital. If that year's income and gains were €4,000, the other €16,000 is capital — you can usually reclaim Irish tax only on the €4,000, unless your treaty has a capital article (Revenue Pensions Manual, chapter 23).
How do you claim relief from Irish tax?
- Each type of Irish pension has its own route to relief from Irish tax, and none of them is automatic.
- A PAYE Exclusion Order stops Irish tax on a company pension; Form IC2 reclaims tax on a pension or annuity; ARF tax needs its own refund form.
| Situation | What to use | Key detail |
|---|---|---|
| Company pension, treaty country | PAYE Exclusion Order | Your pension payer applies to Revenue; Irish tax then stops being deducted. |
| Irish tax already taken from a pension or annuity | Form IC2 | Your new country's tax authority certifies your residence; exemptions expire and you must renew them. |
| Irish tax taken from ARF withdrawals | Refund of Taxes paid on ARF Distributions form | Needs your fund manager's statement splitting income, gains and capital; the stamped form is valid for five years. |
| Year you leave Ireland | Split year treatment | Only income from your Irish resident period is taxed in Ireland that year. |
How is the retirement lump sum taxed if you live abroad?
- In Ireland, the first €200,000 of retirement lump sums across all your pensions is tax-free and the next €300,000 is taxed at 20%.
- Your new country may not recognise that exemption and may tax the lump sum under its own rules, so check before you take it.
- Where you live on the day you take the lump sum can change the result. Plan the timing with your move — our pension lump sum guide has the Irish rules in full.
- Ask a tax adviser in your new country how it treats foreign pension lump sums before you draw yours.
What should you check before retiring abroad?
- Check your residence year by year, the treaty with your new country, which pots you actually hold, and whether an annuity or a transfer would avoid the ARF trap.
- An annuity is a pension payment, so Irish tax on it can normally be stopped with Form IC2; an ARF cannot.
- Your tax residence in each country for each year: in Ireland, generally fewer than 183 days in a year and fewer than 280 across two consecutive years.
- Whether Ireland has a tax treaty with your new country, and what its pension, government service and capital articles say.
- Which of your pots are company pensions, PRSAs, PRBs or ARFs.
- Whether an annuity, a company pension paid as a pension, or a transfer abroad would avoid the ARF problem for you.
Questions we get asked
Is my Irish pension taxed twice if I live abroad?
It can be. Company and State pensions usually are not, thanks to tax treaties. ARF and vested PRSA withdrawals can be, because Ireland taxes them at source and your new country may tax them too.
Can I get a PAYE Exclusion Order on my ARF?
No. Revenue does not issue PAYE Exclusion Orders for ARF or vested PRSA withdrawals. You can only claim a partial refund afterwards, depending on your treaty.
What is Form IC2?
Revenue's form for non-residents to claim exemption from, or a refund of, Irish tax on a pension or annuity under a tax treaty. The tax authority in your country of residence must certify it.
Is the Irish State Pension taxed in Ireland if I live abroad?
No. Irish and foreign State Pensions are taxed by the country where you are resident.
Does the €200,000 tax-free lump sum still apply if I live abroad?
Ireland applies the same limit, but your new country may tax the lump sum under its own rules.