Leaving Ireland? Your Essential Financial Checklist Before Emigrating
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There are many reasons why some people decide to leave Ireland and start a new life abroad. It could be the ongoing housing crisis, the search for better job opportunities, or simply the desire for a fresh start.
When you’re moving to another country, it’s natural to focus on things like visas, accommodation, or setting up a new bank account. But have you thought about what to do with your financial life back in Ireland?
You likely have savings, assets, and tax responsibilities to consider. This blog is here to guide you so you don’t put your finances or future at risk while making your big move.
Why Are Some People Choosing to Leave Ireland?
According to the Central Statistics Office (CSO), in the 12 months leading up to April 2024, around 69,900 people emigrated from Ireland, with 34,700 of them being Irish citizens. This marks an increase from the previous year, when 64,000 people left the country, including 30,500 Irish citizens. This is the highest level of emigration from Ireland in nearly a decade.
Before we dive into the financial checklist for your move, it’s worth acknowledging some reasons why so many are considering life abroad.
Better career opportunities
One of the biggest drivers of emigration is the search for better career opportunities — whether it’s for higher pay, career progression, or roles in industries that are limited in Ireland.
For example, Ireland is facing a workforce crisis in general practice, with up to 30% of newly trained GPs emigrating each year to countries like Australia, New Zealand, Canada, or the UK.
While there are 4,370 GPs working in Ireland, over 1,000 Irish-trained GPs are already practising in the UK, Australia, and New Zealand — adding to the shortage of family doctors at home.
Housing crisis and Cost of living
The escalating cost of living in Ireland, particularly concerning housing expenses, has prompted many residents to consider relocating to countries with more affordable lifestyles.
A recent survey revealed that approximately one-third of Irish residents are contemplating emigration due to housing affordability challenges.
Despite a decrease in the Consumer Price Index to nearly 1.0% by November 2024, housing costs have continued to rise, with rent and mortgage interest rates increasing by 4.5% and 3.8%, respectively, over the year. These financial pressures are leading individuals and families to seek countries where the cost of living is more manageable.
Costly Parenthood
A recent study ranked Ireland among the least affordable countries in Europe for families, scoring just 22 out of 100 and placing third from the bottom.
Maternity and paternity leave policies fall far behind European standards, with Irish mothers receiving 26 weeks of leave paid at only 23.6% of their average earnings.
Childcare costs are an even more significant burden, swallowing up 38% of the average income before deductions — and even after subsidies, families still face paying around 31%.
To make matters worse, preschool fees in Ireland are among the highest in Europe, averaging over €960 per month. These rising costs are making it harder for parents to balance work and family life, and for many, the prospect of better support and affordability abroad is becoming increasingly attractive.
Retirement abroad
The idea of retiring abroad is becoming increasingly attractive, offering the promise of a lower cost of living, more affordable healthcare, and a better quality of life.
In countries where day-to-day expenses and housing are significantly cheaper, Irish retirees can make their pensions go much further.
For many, it’s not just about saving money — it’s about enjoying a more comfortable and relaxed lifestyle in their later years. Read our blog on retiring abroad to explore your options and see how far your retirement income could stretch.
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No matter your motivation, preparation is key. Let’s get into your essential financial checklist to make your move as smooth and stress-free as possible.
Finalise Your Tax Before Leaving Ireland
If you’re planning to move abroad, whether permanently or for an extended period, it’s important to get your taxes in order before you leave.
Check Your Tax Residency Status
Your first step is to understand whether you’ll still be considered an Irish tax resident.
- If you become a non-resident, you will generally only pay Irish tax on income from Irish sources.
- If you remain a tax resident, you must continue to pay Irish tax on your worldwide income. As a tax resident in Ireland, you’re entitled to full tax credits.
Understand the PAYE Exclusion Order
If you’re going abroad to work for an Irish employer, you may qualify for a PAYE Exclusion Order. This means your employer will not deduct Irish tax from your salary while you’re working abroad.
However, if you remain tax resident in Ireland, your worldwide income is still taxable here, even if you work abroad.
Avoid Double Taxation
If you pay tax in another country on your income, you might be able to claim relief to avoid paying tax twice on the same earnings.
- Ireland has Double Taxation Agreements (DTAs) with many countries. These agreements allow you to offset tax paid abroad against your Irish tax liability.
- If there’s no DTA with the country where you work, you will pay tax there first, then Irish tax on the same income.
You can find more details on DTAs on the Revenue website.
Claim Split-Year Treatment (If You’re Eligible)
If you’re moving abroad, you may be able to claim split-year treatment.
This applies if:
- You are a tax resident in Ireland in the year you leave, and
- You will be a non-resident in the following tax year.
With split-year treatment:
- You will pay Irish tax on your income earned up to the date of departure.
- Any income you earn from employment after you leave will not be taxed in Ireland.
- You are still entitled to use your full year of tax credits even though you’ve only lived in Ireland for part of the year.
Keep in mind that this treatment applies to employment income only. To claim, you may need:
- A statement from your employer, or
- A copy of your employment contract.
Check if You’re Due a Tax Refund
If you worked in Ireland during the year and have now moved abroad, you might be entitled to a tax refund.
Organise Your Irish Banking Before Relocating
You may need to review and update your banking arrangements in Ireland before you move abroad.
Decide whether to keep or close Irish accounts
Before you leave, consider whether to keep or close your Irish bank accounts. In many cases, it’s advisable to keep at least one account open to manage any outstanding financial matters. This can be useful for receiving final salary payments, tax refunds, or handling ongoing expenses such as property costs if you’re maintaining assets in Ireland.
Maintaining an Irish bank account also helps preserve your credit history, which can be essential if you plan to apply for a mortgage or other credit when you return. If you expect to return to Ireland in the future, it’s also wise to continue saving with an Irish financial institution rather than solely abroad.
Notify your bank of your move
Make sure to notify your bank of your upcoming move abroad. Updating your address and keeping open lines of communication is essential to avoid potential issues, such as transactions being flagged as suspicious or accounts being temporarily frozen.
Letting your bank know in advance will help ensure uninterrupted access to your funds and services while you are overseas.
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Review Your Savings and Investments Plan
If you have a regular savings and investment plan, it’s important to review your options before moving abroad. In some cases, you may be able to keep your plan running, especially if you continue making contributions, but this can depend on your provider’s rules and your new country of residence.
Some providers may restrict new contributions once you become a non-resident, and even if you keep your plan, the growth might still be subject to Irish exit tax. It’s always best to contact your provider directly to understand your specific terms.
Protect Your Retirement Before You Move
Your retirement planning deserves attention before you move, whether you’re retiring abroad or are still years away from it. Make sure you understand how your move might impact your pension savings, future contributions, and tax treatment. Planning ahead can help you avoid surprises and keep your retirement goals on track, no matter where life takes you.
Review your Irish pensions
Review your Irish pensions carefully before you move abroad. This includes PRSAs, occupational pensions, and any personal retirement savings you’ve built up. Check the terms of your pension schemes to understand how moving will affect your contributions, access, and future benefits.
Some pensions may allow you to continue contributing from overseas, while others might have restrictions.
It’s also a good idea to speak with a financial advisor to explore your options and ensure you’re making the most of your pension savings while living abroad.
The ultimate Retirement Planning Guide.
Planning for retirement is a significant life milestone. Whether you’re just starting to think about retirement or are already well into your retirement journey, this guide aims to empower you to make informed decisions and create a retirement plan that aligns with your unique financial goals and expectations.
After you download your guide, one of our expert mortgage advisors will be in touch shortly to provide you with guidance and further relevant information including typical repayments, qualification amounts and mortgage requirements.
Ask about portability
When looking at pensions and moving abroad, it’s important to ask about portability. Some pensions can be transferred to overseas schemes if they fall under specific agreements — for example, the UK has the QROPS (Qualifying Recognised Overseas Pension Scheme).
This can give you more flexibility to manage your retirement savings in your new country of residence. Always check with your pension provider to understand your options and any potential tax implications.
Check your state pension entitlements
Don’t forget to check your state pension entitlements as part of your retirement planning. If you’ve made enough PRSI contributions over the years, you may still qualify for a portion of the Irish State Pension, even if you’re living abroad.
It’s a valuable piece of your future income, so it’s worth understanding what you’re entitled to and how to claim it when the time comes. Make sure to keep track of your contribution record and stay informed about the rules for claiming from overseas.
Understand the tax treatment of your pension abroad
If you’re planning to retire abroad, it’s essential to understand how your pension will be taxed, as this can significantly impact your retirement income.
For private sector occupational pensions, your tax treatment depends on your residency and whether your new country has a Double Taxation Agreement (DTA) with Ireland. If it does, you’ll generally only pay tax in your country of residence, and you can apply for a PAYE Exclusion Order to stop Irish tax from being deducted. However, without a DTA, Irish tax will still apply.
Public sector pensions are usually taxed in Ireland no matter where you live, and for Approved Retirement Funds (ARFs) or vested Personal Retirement Savings Account (PRSAs), which are investment funds for post-retirement, tax is deducted at the source, with no exemption available. To get the whole picture, check the latest guidance on the Revenue’s website.
Learn more by reading our blog on retiring abroad from Ireland.
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Understand Your Insurance Validity Overseas
If you have life insurance, serious illness cover, health insurance, or income protection policies in Ireland, and you’re planning to move abroad, it’s really important to check with your provider about how your cover works overseas.
Some policies may still offer protection if you’re living or travelling abroad, while others might have restrictions or exclude certain countries.
Make sure to confirm whether your policy remains valid and, crucially, if you or your family would be able to make a claim should something happen while you’re outside Ireland, as the rules can vary between providers.
Decide Your Property’s Future
If you own property in Ireland, it’s a big part of your financial planning when moving abroad. One of the most common dilemmas for Irish expats is whether to sell or rent out their home. Selling can simplify things, giving you a clean break and a lump sum, while renting provides ongoing income but comes with responsibilities.
The right choice depends on your personal plans — like how long you’ll be away, if you intend to return, and importantly, how each option impacts your tax situation.
Decide your property strategy
Before you leave Ireland, it’s crucial to decide on a clear property strategy. There are plenty of options, but choosing the right path requires careful thought.
For example, if you’re planning to settle permanently in your new country, you might decide to sell your Irish home and use the proceeds to buy a new property abroad. You could also split the funds — using some to cover moving costs and the rest to boost your pension with an Additional Voluntary Contribution (AVC).
The best choice depends entirely on your personal situation, so it’s wise to speak with a financial advisor. We can help you build a strategy that works for you and your family, because one wrong step could end up being costly and damaging to your future plans.
Get to Know Tax on Rental Income
Regardless of whether you’ve left Ireland or your current residency status, any rental income earned from Irish property is subject to Irish taxation. This means that the rent you collect from your Irish property must be declared, and appropriate taxes need to be paid to the Irish Revenue.
Understanding these obligations can help ensure you remain compliant with Irish tax laws, avoiding any potential legal or financial complications.
Include Maintenance & Management Costs in Your Rental Plan
If you’re renting out your property while living abroad, it’s essential to have reliable maintenance and management in place — but remember, this comes at a cost.
Property management fees and ongoing maintenance expenses can quickly add up, so make sure to factor these into your financial planning. While professional management can save you stress by handling tenant issues, repairs, and legal requirements, it’s important to budget for these services.
Plan for Capital Gains Tax (CGT) on Selling
When planning to sell your property, don’t forget to factor in Capital Gains Tax (CGT). Even if you become a non-resident, you may still have Irish CGT obligations on the sale of your property. It’s essential to get professional advice to understand the rules and make the most tax-efficient decision for your situation.
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Get your Financial Planning Quote
Emigrating is an exciting new chapter, but without proper financial planning, it can quickly become overwhelming. Before you leave Ireland, take the time to speak with one of our financial advisors — we’ll help you build a personalised plan to suit your journey. Don’t leave your finances to chance.
Get your tailored financial planning quote with True Wealth today and step into your new adventure with confidence. Safe travels and best of luck in this exciting new chapter!
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