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?
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?