Can You Transfer a Pension Out of Ireland? A Complete Guide

In this guide, we’ll explain whether you can transfer a pension out of Ireland and what factors affect your pension’s eligibility for the transfer. We’ll discuss the requirements you need to meet, the steps you should take, and the potential tax implications to be aware of.

What Pensions Are Available in Ireland, and Are They Transferable?

The Irish pension system offers multiple options for saving money toward retirement, the most common ones being:

1. Occupational pension schemes
2. Personal pensions
3. Unfunded public sector pension schemes

Occupational Pension Schemes

Occupational pension schemes, also known as company pension plans or master trusts, are arrangements through which employers commit to providing retirement benefits to their employees.

There are three types of occupational pension schemes:

1. Defined benefit (DB) schemes: These schemes provide guaranteed benefits in retirement. The employer agrees to put a specific sum in an employee’s pension pot, and the amount depends on the employee’s salary and years of service.
2. Defined contribution (DC) schemes: These schemes combine contributions from both the employer and the employee to invest in a range of assets that will secure the employee’s pension. The benefits received at retirement will depend on the total contributions made, the performance of the investments, and any associated costs.
3. Hybrid schemes: These schemes include elements of both DB and DC schemes. They offer a degree of income predictability similar to that of DB schemes with the investment flexibility of a DC scheme.

Most DB and DC schemes can be transferred from Ireland, provided you meet the Irish regulatory requirements including those by the Revenue Commissioners (the country’s tax authority.). These requirements differ depending on where you’re living and whether you’re transferring to an EU member state, the UK, or outside the EU.

Personal Pensions

A personal pension is a retirement savings plan held in your name—it’s not connected to a specific employer. Personal pensions are a suitable option for:

• Self-employed individuals
• Individuals working for an employer that doesn’t offer occupational pension schemes

There are several types of personal pensions in Ireland, including:

Personal retirement bonds can be transferred directly to a UK pension scheme, irrespective of where you live. To transfer benefits out of a PRSA and RAC’s is less likely and complex due to the Irish legislation.

Unfunded Public Sector Pension Schemes

Unfunded public sector pension schemes refer to the non-commercial public sector and are provided to teachers, civil servants, and Gardai (the country’s police force). The schemes operate on a pay-as-you-go basis—current workers’ contributions finance current retirees’ pensions.

This type of pension cannot be transferred abroad as they are paid directly by the Irish government. While you can receive payments overseas, the pension itself will remain in Ireland.

The Implications of Transferring Your Irish Pension Abroad

An Irish pension transfer overseas could simplify pension access and control, offer more investment options, and reduce the tax complexities if you transfer your Irish pension to a jurisdiction with a favourable tax regime, such as Malta.

However, the transfer carries significant implications you should be aware of before beginning the process, including:

• Taxation implications: According to Revenue, all overseas pension transfers are Benefit Crystallisation Events, which means that you could be liable for tax if the value of your pension exceeds the Standard Fund Threshold (SFT), currently set at €2 million. The tax rate equals 40% of the excess amount, and the post-tax excess may also be taxed at your marginal rate. From 2026 to 2029, the SFT will gradually increase from €2 million to €2.8 million and will then be indexed annually, as set out in the Finance Act 2024. This phased increase aims to account for inflation and pension growth over time.Transfers outside Revenue-recognised schemes (including PRSAs and RACs) typically trigger a Benefit Crystallisation Event, potentially subjecting the excess over the €2 million SFT to 40% tax – plus marginal rates on the post-taxed sum.
• Loss of protection under Irish legislation: Once the pension transfer is complete, you will no longer be protected by Irish law or regulatory bodies such as the Pension Authority. In the event of disputes or mismanagement, Irish legal and institutional systems may be unable to assist you.
• Potential loss of benefits: Your new pension may not provide the same benefits as your current Irish scheme.
• Unexpected or high costs: Transferring a pension abroad often involves multiple fees. Your current provider may charge an exit fee, while your new provider may have a setup fee. Depending on your plan, you may also have to pay fees for processing the transfer. Learning about the costs prior to starting the process ensures you can make an informed decision on whether the transfer is financially viable.
• Limited DTAs: Ireland’s double taxation agreements (DTAs) are limited in number and scope and typically do not include the robust pension-specific provisions found in DTAs of other jurisdictions. Tax treatment largely depends on the receiving scheme’s type and local tax law rather than treaty protections.

Working with a finance adviser is essential to fully understand how the transfer may affect your pension, what costs you may be subject to, and what benefits you may enjoy.

An experienced specialist offers personalised pension transfer advice and can discuss every transfer aspect with you to provide clarity, maximise transparency, and minimise the risks of excessive charges.

What Are the Requirements for a Pension Transfer?

Your pension type is only one aspect determining its eligibility for international transfer. To ensure that the purpose of the transfer isn’t to avoid tax, the Irish Revenue permits international pension transfers solely under specific conditions outlined in the Pensions Manual. Acceptable reasons for transferring your pension include:

1. Consolidating pensions into one scheme for simplified management
2. Managing retirement funds in local currency to avoid exchange rate risks
3. Avoiding double taxation and the administrative complexities associated with claiming annual tax refunds under a double taxation agreement. While Irish DTAs exist, they do not automatically guarantee pension transfer relief: benefits depend on the receiving scheme and the specific treaty provisions – or may even preclude passported transfers. Always validate scheme eligibility under Revenue guidance.
4. Appointing an adviser who is licensed in your new jurisdiction to advise you.

Requirements for Transferring Occupational Pensions and PRSAs Out of Ireland

Under the Occupational Pension Schemes and Personal Retirement Savings Accounts (PRSA) Regulations, several conditions must be satisfied before making any overseas pension transfer. Trustees and PRSA providers must ensure the following:

• The receiving scheme is deemed “relevant” under Section 770 of the Tax Consolidation Act (TCA).
• The scheme is approved or regulated by a competent authority in the destination country.
• The member has personally requested the transfer.

To satisfy the first two conditions, trustees or PRSA providers must obtain written confirmation from the administrator of the overseas scheme.

The precise requirements differ depending on whether the transfer involves an occupational scheme or a PRSA, and whether the transfer is to an EU member state or a non-EU country.

Note that for retirement annuity contracts (RACs), benefits typically need to be transferred to a PRSA before any onward transfer can occur – though this route is often complex and may attract tax at source.

Occupational Scheme Transfers

Transfers from Irish occupational pension schemes may proceed under the following conditions:

• EU/UK transfers: The receiving scheme must be operated by an Institution for Occupational Retirement Provision (IORP) under the EU Pensions Directive (Directive 2016/2341) and must be based in an EU state that has fully implemented the directive.
• Non-EU transfers: Permitted only if the individual is employed in the country where the scheme is located.

PRSA Transfers

While PRSAs are technically transferable under Irish Revenue guidelines, in practice, they are subject to significant limitations:

• EU transfers: Permitted where the transfer meets Irish Revenue requirements.
• Non-EU transfers: Only allowed to the country in which the member is resident, and usually treated as a full encashment for tax purposes, potentially triggering income tax on the entire amount at source.

Given these constraints, PRSA transfers are rarely tax-efficient, and are not generally recommended unless supported by explicit guidance from a qualified pension transfer specialist.

The Steps for Transferring an Irish Pension Abroad

While the exact steps for moving your Irish pension abroad may depend on your tax residency status, pension type, and the country you want to move the pension to, the process typically involves the following:

1. Consulting a pension transfer specialist: Working with a knowledgeable pension transfer adviser with experience in managing Irish pension transfers is crucial for ensuring a seamless transfer process. They will provide professional and personalised guidance while prioritising wealth preservation, tax efficiency, and compliance with relevant laws.
2. Collecting information on your current pension scheme: Your adviser will ask you to sign a document authorising them to contact your pension provider in Ireland and obtain details on your current pension scheme to assess its eligibility for the transfer.
3. Reviewing your financial objectives: Your adviser will inquire about your current financial situation, retirement plans, and anticipated expenses to give you an objective recommendation of a financial solution that aligns with your needs. For instance, they may ask if you plan to repatriate, as this can affect the long-term advantages of proceeding with the transfer.

In addition to helping you move your Irish pension abroad, experienced advisers, like those at Titan Wealth International, will continue providing support after the transfer is completed. They can help you manage your investments more efficiently, optimise tax exposure, and develop long-term financial plans aligning with your priorities.

Can You Access Your Irish Pension Abroad If You Don’t Transfer It?

Your pension is your possession, so you can access it regardless of your location. Still, tax implications may apply: