UK expats planning to retire in Ireland may seek to transfer their UK pensions to ensure easier access and management. However, as the transfer process involves multiple regulatory considerations across UK and Irish jurisdictions, careful preparation is essential to remain compliant and avoid unnecessary tax charges.
We explain how to transfer a UK pension to Ireland and what pension types are available to UK expats. We’ll also provide an overview of the main requirements necessary to ensure the transfer is compliant and tax-efficient.
What You Will Learn
- What UK pensions can be transferred to Ireland?
- How does the Irish pension system work?
- What requirements do you need to meet to transfer your pension to Ireland?
- What taxes will you be exposed to if you transfer your UK pension to Ireland?
What UK Pensions Can Be Transferred to Ireland?
UK private sector defined benefit and defined contribution pensions can be transferred to Ireland. Unfunded public sector schemes (such as those for teachers, police officers, firefighters, or NHS workers) cannot be transferred.
The UK State Pension can’t be transferred to Ireland (or any other foreign jurisdiction). However, due to the social security agreement between the UK and Ireland, you can access your state pension in Ireland and receive regular pension increases.
It is important to note that some pension providers may decline the transfer if there’s less than a year left before you’re supposed to become eligible to access your pension.
The Irish Pension System
The Irish pension system is based on three pillars:
- Occupational pensions: An occupational pension scheme is typically established and operated by the employer, who makes regular contributions to it. Depending on the pension type, defined benefit or defined contribution, the employee may also contribute a specific percentage of their salary to the scheme. Although occupational pensions aren’t mandatory in Ireland, they are commonly offered, especially by larger companies.
- Personal pensions: Personal pensions are individual savings contracts typically used by individuals who don’t want to join an occupational pension scheme, don’t have access to it, or are self-employed. The most popular types of personal pensions are personal retirement savings accounts (PRSAs) and personal retirement bonds (or buyout bonds).
- State pensions: State pensions are payments that the Irish government provides to eligible individuals. There are two types of state pensions:
- Contributory state pensions aren’t means-tested and are paid to individuals who have made enough Irish social insurance contributions.
- Non-contributory state pensions are means-tested and are paid out to individuals who don’t qualify for the contributory state pension.
Pension Transfer Rules: Irish QROPS
His Majesty’s Revenue and Customs (HMRC) allows UK pensions to be transferred to Ireland only if the receiving scheme is a Recognised Overseas Pension Scheme (ROPS) that has QROPS status. This ensures the scheme complies with both UK and Irish pension legislation.
HMRC has compiled a list of recognised overseas pension schemes (ROPS) for every country that possesses eligible plans, and Ireland currently provides over 30 options, including:
- Accenture Defined Contribution Pension Plan
- Bespoke Trustees Limited Personal Retirement Bond
- Independent Trustee Company Buy Out Bond
- Synergy Personal Retirement Savings Account (PRSA)
The ROPS list is updated twice monthly, but inclusion does not mean HMRC endorses the scheme – it is based on self-certification by the provider. Expats should therefore check the most recent HMRC ROPS list and confirm scheme eligibility before initiating a transfer.
QROPS Charges and Rules
QROPS transfers are governed by specific rules that UK expats must understand to avoid unnecessary tax charges and maintain compliance. The key points include:
- Overseas Transfer Charge (OTC): A 25% overseas transfer charge may apply if you transfer to a QROPS in Ireland if you do not live in the same country where your QROPS is established at the time of transfer, or if you leave that country within five years. Since 30 October 2024, the broader EEA residency exemption no longer applies — you must be resident in the same country as the QROPS for the exemption to apply. If you move to Ireland within five years of a transfer to an Irish QROPS, you can normally apply for a refund of the charge.
- Overseas Transfer Allowance (OTA): The allowance is £1,073,100 (2025/26) unless you have a protected higher allowance from before the Lifetime Allowance was abolished in April 2024. If the total value of your overseas transfers exceeds this limit, a 25% tax charge applies to the excess amount.
- HMRC Monitoring Period: HMRC can reassess a QROPS transfer for up to 10 full UK tax years after the tax year you became non-UK resident, or five years from the transfer date – whichever is later. If you return to a UK tax residence during this period, withdrawals from the QROPS may become liable to UK tax charges. The 5-year OTC residency test is separate from the 10-year monitoring rule.
- Transfers to Non-QROPS Schemes: Moving your pension into a scheme that is not QROPS-approved is treated as an unauthorised payment. This triggers a 40% unauthorised payment charge, plus a potential 15% unauthorised payment surcharge if unauthorised payments in a tax year exceed 25% of the fund – a combined liability of up to 55%.
If you want to learn more about QROPS advantages and drawbacks and whether transferring to an overseas scheme aligns with your long-term plans, consult a pension transfer adviser. Our experts at Titan Wealth International can evaluate your current schemes and provide comprehensive pension transfer advice to guide you through the process of moving your pension to Ireland.
Which Pension Types in Ireland Can You Transfer To?
UK expats can transfer to one of the following Irish pension products:
- Occupational pension scheme (must be a ROPS/QROPS if receiving a UK transfer)
- Personal retirement savings account (PRSA) (only to a PRSA that is listed on HMRC’s ROPS list / has QROPS status)
- Buyout bond (Personal Retirement Bond / PRB or “BOB”) (only to a PRB that is listed on HMRC’s ROPS list / has QROPS status)
Understanding the benefits and limitations of each scheme is essential for UK expats who want to make an informed decision and identify a scheme that aligns with their preferences and priorities.
Always verify the receiving scheme is on the latest HMRC ROPS list (updated 1st & 15th monthly). Inclusion is self-certification, not a HMRC endorsement.
Occupational Pension Scheme
As in the UK, occupational pension schemes are classified into two main categories:
- Defined benefit pensions
- Defined contribution pensions
They offer benefits such as:
- Access to a reliable source of income in retirement
- Option for a lump sum payment in retirement
- Income tax relief on your contributions (dependent on your age and total earnings)
Note: Contributions to occupational schemes generally qualify for Irish income-tax relief at source, subject to age-related limits and the €115,000 earnings cap.
As a UK expat, you can transfer to a QROPS occupational pension scheme in Ireland, but there are several important considerations:
- As occupational schemes are employer-sponsored, transfer is normally possible only if you are (or will be) an employee of the sponsoring employer and the scheme rules allow an external transfer-in.
- There is no 25% OTC if you are resident in the same country as the QROPS at the time of transfer. An additional exemption applies where the QROPS is an occupational scheme and you are an employee of the sponsoring employer when the transfer is made.
- If you cease to meet the exemption within five years (for example, by moving to another country), the OTC can be applied retrospectively. If you move into the relevant country within five years, a refund can be claimed.
Personal Retirement Savings Account
A PRSA is an individual pension policy that offers several significant advantages for those who plan to transfer their pension to it:
- Contribution flexibility: You can make regular or ad-hoc contributions, adjust the amounts, or pause payments without penalties – giving flexibility to match your financial situation.
- Tax efficiency: Personal contributions may qualify for Irish income-tax relief, subject to age-related percentage limits and a maximum of €115,000 of relevant earnings per year (combined across all Irish pensions).
- Independence from employment: Unlike occupational schemes, a PRSA is not tied to an employer, making it portable.
A UK pension transfer to a PRSA could be associated with the following Important caveats:
- QROPS eligibility: Not all PRSAs can accept UK transfers, only those listed on HMRC’s ROPS list are eligible.
- Overseas Transfer Charge (OTC): To avoid the 25% OTC, you must be resident in Ireland when transferring your UK pension into an Irish PRSA. The previous EEA-wide exemption was removed on 30 October 2024.
- Access: Benefits are generally available from age 60. Earlier access may be allowed only in cases of permanent incapacity, subject to Revenue approval. At retirement, you may take a tax-free lump sum (up to €200,000; the next €300,000 at 20%) with the balance used to purchase an annuity or transferred into an Approved Retirement Fund (ARF).
- Investment risk: PRSAs are typically defined contribution plans. Your retirement income depends on investment performance, and unlike a defined benefit scheme, no guaranteed pension is provided.
Buyout Bond
The primary purpose of a buyout bond in Ireland is to allow employees to transfer the value of a former occupational pension scheme into a personal pension policy when they leave their employer. This keeps pension benefits independent of ongoing employment and under the individual’s control.
Buyout Bonds that have QROPS status (listed on HMRC’s ROPS list) can also accept transfers from UK occupational and private pension schemes.
Key features for transferring your pension to a buyout bond:
- Tax treatment of investments: Funds within a buyout bond grow free of Irish Deposit Interest Retention Tax (DIRT) and Capital Gains Tax (CGT). However, withdrawals in retirement are taxable under Irish income tax and USC rules.
- Investment choice: A wide range of investment options is available, allowing for portfolio diversification.
- Access age: Benefits are generally available from age 60. In some cases, benefits may be accessed from age 50 (if linked to leaving the employment that built up the original pension rights) or earlier in cases of permanent incapacity.
- Overseas transfer charge (OTC): To avoid the 25% OTC, you must be resident in Ireland at the time of transfer. If you move out of Ireland within five years, the OTC may be applied retrospectively; conversely, moving into Ireland within five years can allow you to claim a refund.
International Self-Invested Pension Plan—A Viable Alternative to QROPS
UK expats who would like to explore options beyond an Irish QROPS may consider transferring their pension to an International Self-Invested Personal Pension (SIPP).
International SIPPs are UK-based pension vehicles regulated by the Financial Conduct Authority (FCA). They remain within the UK regulatory framework and subject to UK pension tax rules.
The potential advantages of an International SIPP include:
| Benefit | Explanation |
|---|---|
| Investment freedom | Access to a wide range of global investment options, which may help with diversification. |
| Currency flexibility | Depending on your residency and investment strategy, you can hold assets in GBP, EUR, or as part of a multi-currency portfolio. |
| Flexi-access drawdown | You can usually take up to 25% of your pension pot as a tax-free lump sum, capped at £268,275 (unless you hold a protected higher allowance). The balance can remain invested. If you are a tax resident in Ireland when benefits are drawn, Irish tax rules will apply – including possible taxation of the lump sum. |
| Tax relief on contributions | The UK government provides 20% basic-rate relief on eligible contributions, with higher/additional-rate relief claimable via self-assessment. However, relief is only available if you have UK relevant earnings or meet specific residency criteria, therefore many expats will not qualify. |
| Potential transfer to QROPS | In certain circumstances, an International SIPP may allow onward transfer to a QROPS in Ireland, subject to scheme rules and HMRC conditions. |
Historically, International SIPPs carried higher fees than QROPS. Today, some providers offer cost structures that are competitive or lower. However, charges and permitted investments vary significantly between providers, so due diligence and cost comparison are essential.
How Are Pensions Taxed in Ireland?
Personal and occupational pensions in Ireland are liable for income tax and the Universal Social Charge. Ireland offers tax relief on pension contributions, but the relief applies to the combined total of your contributions (if you have multiple pensions in Ireland).
The limits of your tax relief depend on your age and earnings, with the maximum amount of earnings taken into account for the relief equalling €115,000 per year.
When withdrawing from your pension, the first €200,000 you withdraw as a lump sum is tax-free.
The next €300,000 is taxed at 20%, and any amount above €500,000 is taxed at your marginal rate (up to 40%).
The tax-free lifetime limit on lump sum payments applies to both Irish and foreign pension arrangements.
From the budget update in 2025, although the lump-sum thresholds remain unchanged, individuals can now offset the €60,000 tax paid on the €200k–€500k slice against any 40% Chargeable Excess Tax on pension funds above the Standard Fund Threshold (SFT). This effectively allows up to €2.15 million to be drawn before additional CET becomes payable.
The current SFT is €2 million, with any crystallised excess subject to a 40% tax. From 2026, the SFT will increase by €200,000 each year until it reaches €2.8 million in 2029, and thereafter it will be indexed to earnings.
Note that under the UK-Ireland Double Taxation Agreement, your private and non-government occupational pensions are normally taxed only in your country of residence (Ireland if you retire there).
However, if you later return to UK tax residency, HMRC may reassess withdrawals, particularly from QROPS. Cross-border tax advice is strongly recommended.
Book a Complimentary Discovery Call
Book a complimentary discovery call with one of our experts to discuss whether a UK pension transfer to Ireland, or an alternative such as an International SIPP, could be appropriate for your circumstances.
This is an information session only, it will not include a personal recommendation. If financial advice is required, we will explain how this can be provided.
We’ll help you understand:
- The potential benefits and drawbacks of different options.
- The tax rules that apply in the UK and Ireland.
- How your residency and long-term retirement plans may affect your choices.
Key Takeaway
UK expats may be able to transfer their UK pensions to Ireland, provided the receiving scheme is a ROPS with QROPS status and listed by HMRC at the time of transfer.
Not all UK pensions are transferable (for example, unfunded public-sector schemes are excluded), and transfers are subject to HMRC rules including the overseas transfer charge, overseas transfer allowance, and a 10-year monitoring period.
Alternatively, some expats choose to retain their pension within the UK regulatory framework by moving it to an International SIPP, which may offer greater portability and investment choice. However, any benefits drawn while resident in Ireland will normally be subject to Irish tax rules, regardless of whether the pension is in a QROPS or SIPP.
This article has outlined the main pension transfer routes, QROPS and International SIPPs, together with the key tax considerations for UK expats retiring in Ireland.
Specialist advice, like that at Titan Wealth International, is strongly recommended to assess your personal circumstances, including residency status, financial priorities, and long-term retirement plans, before proceeding with any cross-border pension transfer.
