We pay private sector pensions to retired employees. One of our pensioners is moving to Spain. Should we apply to Revenue for a PAYE Exclusion Order for him?


Generally Irish pensions are chargeable to tax in Ireland regardless of the residence of the individual. However, where the individual is resident in a country with which Ireland has a double taxation agreement (DTA) for the relevant tax year and is not tax resident in Ireland, Revenue will generally issue a PAYE Exclusion Order as most DTAs provide that private pensions are taxable in the country where the individual is resident.

It should be noted that:

    • Split year residence relief does not apply to pension income

  • The pension would be taxable in Ireland if the individual is resident in a non-DTA country

    The above treatment does not apply to Government or Local Authority pensions which are taxable in Ireland regardless of where the recipient is tax resident.