Banking, Money and Taxes in Ireland

Banking in Ireland
Banking in Ireland will be similar or identical to banking in a home country. To open an account it is advisable, or at least easier, to do so in person rather than before arriving. To open a normal resident account the account holder must bring several pieces of identification and proof of residency in Ireland. This can be a bill sent to the account holder's Irish address.

If an expat in Ireland is opening a non-resident account they will need a reference and be able to provide a history of their bank transactions from their home bank. It is often a good idea to keep a home country's account open but an Irish account is also needed to pay for bills. The account can take several weeks to activate so expats in Ireland should plan on keeping money elsewhere in the meantime. AIB, Ulster Bank, Permanent TSB and Bank of Ireland are all major banks in Ireland offering a wide range of services. All these Irish banks will offer internet banking options which are easy and popular to use.

Taxes in Ireland

Tax status in Ireland depends on an expat's residency status. Expats qualify for tax residency if they are in Ireland, or a EU country, for at least 183 days of a tax year or 280 days over two years. Short visits of less than 30 days do not contribute towards the two year total. This is further broken down if the expat has already made Ireland their permanent home after three years.

Incomes derived from inside Ireland are taxed from each paycheck. Below a certain amount, which is determined by a number of factors such as marriage status, dependents, etc, the income is taxed at a low rate of around 20 percent. Any income above that is taxed at a much higher rate up to 42 percent.

Taxes in any country are confusing and made much more so by expatriation. Because of different levels of income taxes, expats living in Ireland can often have a tax advantage. To best find these tax solutions and to avoid double taxation (paying taxes in Ireland and in a home country) it is strongly advisable to hire an expat tax planner. Ireland has tax treaties with most expat's countries but there are many differences, and tax laws of a home country, that are again best understood by a tax planner. When an expat registers for the tax system and receives a PPS number (similar to a US social security number) they qualify for Ireland's social welfare such as healthcare coverage and pensions.