Tax on Public Sector Pension if emigrating within EU.

Jack Frost

Registered User
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Hi I am seeking some advice regarding income tax on a Public Service pension. My situation is that I am currently woking in the Public Sector for 38 years and I intend to retire within the next 6 months.

I am thinking of moving abroad permanantly to Germany. My pension will be approximately €35,000 per annum gross. My question is do I have to pay Irish Tax , Prsi and USC if I am permantly resident in Germany, or do I pay it there.

Also I have one rental income house in Ireland which I currently pay tax on, will I still be liable for tax on that income in Germany.

Any advice would be appreciated.
 
Generally in the EU, Public Service pensions (as distinct from private pensions) are taxable in the country providing them and you would get double taxation relief in your country of residence.

Income from property is also taxed in country where the property is situated and again, double taxation relief would be available.

Both incomes would have to be declared in Germany and the tax payable would depend on whether the double taxation relief of the Irish tax offset completely the German tax due or not.
 
Thank you very much for the reply JPD...yes I suspected as much, but i wasnt sure, since I read somewhere that Ireland had a special TAX arrangement with some EU countries such as Portugal and Cyprus where retirees who reside in those countries pay reduced tax for a number of years in their new country of residence, but I suspected that it didnt apply to Public Service Pensions, which is a shame. Anyway thanks for the information.
 
Jack Frost: You are correct that there is a scheme in Portugal whereby someone who emigrates there can receive their pension tax free. There are hoops to jump through and Revenue take their cut but it can happen. It was stated on here that someone who had retired from teaching were able to avail of the scheme. It may be searchable on here.
 
Jack Frost: Just wondering if you have had any clarification on this issue?
 
Hi there, sorry I just see your message now. Yes I enquired from the revenue about the tax implications on your pension of moving to somewhere like Cyprus or Portugal. However the reply was negative in respect of Public Service pensions, the income tax agreements between the Government and some of these countries only applies to pensions other than Public Sector pensions, so unfortunately its a non runner for me, I would pay tax as if I was living in Ireland. Im not to sure how those two teachers which were mentioned in an earlier post managed it, but for me its a negative.
 
Thanks for the reply Jack. Yes, the issue of the teachers does not gel with all available info on the scheme. Cheers, Slim
 
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