Returning to Ireland in 2019? – Here’s what you need to know.
Tax is always a major concern for ex-pats thinking of returning to Ireland. In a special holiday season series, our tax department are sharing some of the common questions that we are frequently asked from people who are looking to return home.
Question #6: I paid social insurance contributions while living and working abroad. Will these contributions count towards qualifying for my Irish state pension?
In order to qualify for the full Irish State pension, a minimum number of PRSI contributions must have been paid in Ireland. While you were abroad, you would more than likely have stopped making PRSI contributions unless you opted to make voluntary contributions, subject to meeting the required conditions.
Depending on where you worked, it may be possible to include social insurance contributions paid abroad with your Irish contributions to help you qualify for the full State pension in Ireland. Each country in the EU has its own social security laws, however EU rules coordinate national systems to ensure that people moving to other EU countries do not lose security cover. They can also amalgamate their contributions from member states when applying for a pension.
Ireland also has bi-lateral agreements with a number of countries including the USA, Canada, Australia and New Zealand to name but a few, such that contributions paid in these countries can be added to your Irish social insurance contributions.
With Brexit looming, even if the UK exits the EU, it’s likely that measures will be put in place to ensure continuity in this area.
Read the answers to the rest of our tax series on returning home:
Question #3: I have been living abroad for a number of years and am planning on returning to Ireland. I bought a property abroad and will sell the property before returning to Ireland. Will the proceeds be taxable when brought into Ireland? What about any money I have saved in my foreign bank account?
If you have any questions about returning to Ireland or any other personal tax issues, please contact a member of our tax team.