Recommended Reading for American Citizens Moving to or Living in Ireland
Moving to Ireland - Important Considerations
This article helps US citizens planning to relocate to the Republic of Ireland by covering essential aspects across multiple areas. It begins with important immigration and visa details, emphasizing the need for appropriate long-term permission beyond the initial 90-day visa-free period and describing various permit options tailored to work, study, or family reunification purposes. The article then explores financial topics, including cost of living, procedures for opening Irish bank accounts, and the intricacies of US and Irish tax responsibilities, stressing the importance of avoiding double taxation. Read more…
Taxation of US Retirement Account Distributions
This article offers an overview of the complex tax framework facing US citizens residing in Ireland who receive distributions from US retirement accounts. Because both countries claim the right to tax worldwide income, the Ireland-US Double Taxation Agreement (DTA) provides a relief mechanism, typically the Foreign Tax Credit (FTC), to prevent double taxation on traditional account distributions. The text highlights a significant benefit for periodic Roth distributions, which are usually tax-free in both countries, contrasting this with a new Irish rule that makes lump-sum distributions from any foreign pension partially taxable. Read more…
Financial Planning When Moving to Ireland
This guide offers an overview for US individuals considering work or investment opportunities in Ireland. It explains the complexities of the Irish tax system and how they affect Americans, including taxes on dividends, interest, capital gains, and inheritances or gifts. The document also highlights US tax responsibilities for those earning Irish income or holding Irish investments, such as the Foreign Earned Income Exclusion and Foreign Tax Credit. Additionally, it discusses the US-Ireland tax treaty aimed at avoiding double taxation and outlines reporting requirements for US persons with foreign financial assets. Read more…
Relocating to Ireland for a dual-citizenship couple
A condensed guide for dual-citizenship couples relocating from the U.S. to Ireland, covering both immigration requirements and complex tax implications. The immigration process is simplified if at least one partner holds Irish citizenship, which grants the right to live and work in Ireland, though the U.S. spouse must still apply for permission to remain. The text details the difficulties of dual taxation, noting that U.S. citizens must always file a U.S. tax return, but the U.S.-Ireland tax treaty and the Foreign Tax Credit typically prevent double taxation on income such as traditional IRA withdrawals. However, the most critical financial warning is the potential for Ireland's "deemed disposal" rule to tax the unrealized growth of U.S. retirement accounts. Read more...
