Irish state pension paid in Germany. Where is tax due?

[murphaph]

Hi all,
I'm quite a few years off really needing to know the answer but I'd like to be prepared.

I worked in PAYE employment for 15 or so years in Ireland before leaving (most likely permanently) to live and work in Germany. I have to do an Irish tax return as I have rental income there but my Irish state pension will ultimately be claimed through the German state pension system, which will contact the DSP on my behalf to claim my Irish pension.

The pension is taxable income in both countries...but where is the Irish pension actually taxed? I suspect Ireland as it's Irish sourced income at the end of the day but perhaps pensions have special rules?

If it's taxed in Ireland along with my rental income it gets complicated because the rental income from an EU state outside Germany is NOT taxable in Germany, nor does it affect the rate at which you pay tax on your other taxable income. So I would be adding my Irish pension to my rental income and paying Revenue their income tax & USC but then the Germans would want to know how much tax I'd paid on the pension part only, as the rest is not taxable!

Any thoughts on this?

 

[gimp]

If you are living in Germany why dont you become Tax resident there and pay all your income tax in Germany. Do not pay any in Ireland. Sounds like you will be better off.

 

[murphaph]

If you are living in Germany why dont you become Tax resident there and pay all your income tax in Germany. Do not pay any in Ireland. Sounds like you will be better off.

I am tax resident in Germany. Rental income sourced in Ireland is taxable in Ireland in the first instance. You can't opt out of that ;-)

After you pay your Irish tax on the rental income, you would normally then pay any tax due in the country you are tax resident in. In my case however I don't pay anything further because Germany does not tax any rental income (among other things) sourced in the EU but outside Germany.

 

[Forumuser]

I am tax resident in Germany. Rental income sourced in Ireland is taxable in Ireland in the first instance. You can't opt out of that ;-)

After you pay your Irish tax on the rental income, you would normally then pay any tax due in the country you are tax resident in. In my case however I don't pay anything further because Germany does not tax any rental income (among other things) sourced in the EU but outside Germany.

But you will pay tax on your future German pension to the Germans, regardless where you live. And they also want to see a complete list of ALL your Irish income to decide on your tax. They won't tax your Irish income, though.The Irish pension will be taxed by the Irish revenue.