Retiring abroad: Ireland

If you dream of retiring abroad like many UK pensioners, it's a big decision that can affect your pensions. In a poll carried out in 2006, the majority of Britons, 53%, would consider emigrating. Indeed, more than 300,000 individuals leave the UK each year to start a new life overseas. Estimates suggest that up to 5.5 million British nationals now live abroad. Ireland is the second expat destination, after Spain, for Britons who choose to live overseas in Europe.

According to the Central Office Statistics, the total number of British citizens estimated to be living in Ireland in 2016 was 103,113. France and Germany follow this. The data for the number of UK citizens claiming a UK state pension is unclear. This is due to the number of Irish descendants returning home to retire in Ireland.

Ranking British expats by country

• Australia
• USA
• Canada
• Spain
• Ireland
• New Zealand
• France
• South Africa
• Germany
• Italy
  
  

UK's citizens can work in Ireland without restrictions.  Thanks to a series of bilateral agreements between Ireland and the UK that started in 1922. These agreements formed the Common Travel Area. This is an open-border area comprising Ireland, United Kingdom, the Channel Islands and the Isle of Man.

This is an open-border area comprising Ireland, United Kingdom, the Channel Islands and the Isle of Man.

It allows for the free movement of people between these areas. Access to the public healthcare system. The right to vote in general elections. All without the need for passport controls and visas for working.

Retiring abroad Ireland: pension advice 

The problem for most UK nationals. Is that, most UK advisers are not regulated to advise EU residents. These went with Brexit. 

Unless they are regulated in the EU, they should not be advising you.

If the UK firm has taken the appropriate steps to advise EU residents. They may not be aware of the complexity of the Irish tax system.

You will need to find an advisory firm regulated in the UK and Ireland that is knowledgeable about UK pension regulations. The firm would also require knowledge of UK and Irish taxation and their interaction.

Retiring abroad Ireland: taxation advice 

If you move abroad, you don't have to transfer your UK pension pot. You can choose to leave it in the UK.  You can then take an income from it in the UK. 

As an Irish resident. Your UK pension is taxable in Ireland. This must be declared in Ireland. 

It is important to note. Although, a 'tax-free lump sum' similar to the UK exists in Ireland. All foreign pensions, including UK pensions. Are taxable sources of income in Ireland. Income Tax and Universal Social Charge (USC) would apply to all sources of income. If you have not moved to Ireland yet and want a lump sum. Taking it while you are still a UK resident will save you tax. 

Qualifying Recognised Overseas Pensions Scheme (QROPS)

The setting up of a foreign exchange account should address currency risk.

Alternatively, expats often consider transferring their pensions to a QROPS, avoiding currency transfer risks.

Retiring abroad:  Australia | New Zealand | USA | Canada | Spain | Portugal | Italy | France | Germany | Ireland