receiving govt.pension overseas
Discussion
I have a friend who is retired and considering moving to the Republic of Ireland to be nearer his family and grandchildren.
It would seem that there is not a problem in having his Govt. retirement pension paid into an Irish bank, I also know that he has a personal pension scheme which pays a larger amount than his retirement pension. It would appear that if you are over 65 and a permanent resident in Ireland you do not pay income tax.
I have not been able to verify from the various Govt. websites if there would be an administration charge to transfer his pension when it is due each month, he obviously realises that the payment will vary according to the exchange rate at the time of transfer, and I assume that the same rules would apply to his personal pension.
Does anyone have first hand experience of this situation or point me to the right Govt. website to help him confirm any charges he might incur and if so does it vary according to the amount of money being transferred, also the tax situation?
Many thanks.
It would seem that there is not a problem in having his Govt. retirement pension paid into an Irish bank, I also know that he has a personal pension scheme which pays a larger amount than his retirement pension. It would appear that if you are over 65 and a permanent resident in Ireland you do not pay income tax.
I have not been able to verify from the various Govt. websites if there would be an administration charge to transfer his pension when it is due each month, he obviously realises that the payment will vary according to the exchange rate at the time of transfer, and I assume that the same rules would apply to his personal pension.
Does anyone have first hand experience of this situation or point me to the right Govt. website to help him confirm any charges he might incur and if so does it vary according to the amount of money being transferred, also the tax situation?
Many thanks.
I think you are posting in the wrong section try the Ireland section, scroll down to the bottom of PH to the International section.
Here in France payments are made in Euros at the rate applicable on the day which changes every day.
Someone should be able to give you information in the Ireland section.
Here in France payments are made in Euros at the rate applicable on the day which changes every day.
Someone should be able to give you information in the Ireland section.
cjb44 said:
I have a friend who is retired and considering moving to the Republic of Ireland to be nearer his family and grandchildren.
It would seem that there is not a problem in having his Govt. retirement pension paid into an Irish bank, I also know that he has a personal pension scheme which pays a larger amount than his retirement pension. It would appear that if you are over 65 and a permanent resident in Ireland you do not pay income tax.
I have not been able to verify from the various Govt. websites if there would be an administration charge to transfer his pension when it is due each month, he obviously realises that the payment will vary according to the exchange rate at the time of transfer, and I assume that the same rules would apply to his personal pension.
Does anyone have first hand experience of this situation or point me to the right Govt. website to help him confirm any charges he might incur and if so does it vary according to the amount of money being transferred, also the tax situation?
Many thanks.
I don't think that's correct. It appears from the tax info in Ireland that if tax is paid on a pension in the country that it is issued from then it is payable in Ireland...unless I have missed that in the tax info read online. I'll be off to Ireland in a couple of years if that is the case.It would seem that there is not a problem in having his Govt. retirement pension paid into an Irish bank, I also know that he has a personal pension scheme which pays a larger amount than his retirement pension. It would appear that if you are over 65 and a permanent resident in Ireland you do not pay income tax.
I have not been able to verify from the various Govt. websites if there would be an administration charge to transfer his pension when it is due each month, he obviously realises that the payment will vary according to the exchange rate at the time of transfer, and I assume that the same rules would apply to his personal pension.
Does anyone have first hand experience of this situation or point me to the right Govt. website to help him confirm any charges he might incur and if so does it vary according to the amount of money being transferred, also the tax situation?
Many thanks.
I am having a similar problem, pension can be received by any bank, but I'll loose on exchange and charges if received monthly in my country of residence, as paid in pounds. I/m looking at a non resident account on IOM, looks easy enough to open if you are a genuine non UKresident. IOM wont tax it, I can transfer to my country of residence at times to suit me, and its not taxable on arrival in country.
France here but the same situation. My police pension is paid into my Co-op bank account in the UK, I just changed my address from the UK to France when we moved here, no issues at all.
I then use a transfer company to move the money over when needed to my French account .
Taxation wise, the U.K. Govt reserves the right to tax all Govt pensions in the UK, so he will still be taxed there, under the various dual taxation treaties he will need to declare the income in Ireland but he will not need to pay tax on it but may be liable for the local version of National Insurance as I am in France.
I then use a transfer company to move the money over when needed to my French account .
Taxation wise, the U.K. Govt reserves the right to tax all Govt pensions in the UK, so he will still be taxed there, under the various dual taxation treaties he will need to declare the income in Ireland but he will not need to pay tax on it but may be liable for the local version of National Insurance as I am in France.
Edited by Rushjob on Monday 9th April 07:33
cjb44 said:
It would seem that there is not a problem in having his Govt. retirement pension paid into an Irish bank, I also know that he has a personal pension scheme which pays a larger amount than his retirement pension. It would appear that if you are over 65 and a permanent resident in Ireland you do not pay income tax.
My understanding is UK government pensions are taxed in the UK even if you move abroad, unless it is to one of the few countries where there is a specific agreement to be taxed there - https://www.gov.uk/hmrc-internal-manuals/double-ta...
https://assets.publishing.service.gov.uk/governmen...
cjb44 said:
Thanks chaps, this is obviously more complicated than at first seems, he has got to go to the various relevant authorities to get the complete picture; it would seem that there will be charges for the transfer every time money is taken.
Thank you for all your replies.
If you don't want it in Sterling, then at some point when it is transferred to another currency, yes, there will be costs. Why would there not be?Thank you for all your replies.
DWP will pay state pension in local currency, ie euro's if you use an irish bank account, DWP do not charge fees for that but exchange rates may affect the amount. I assume irish banks accounts are free as those in UK.
Or you can be paid to a UK account and transfer yourself, youyr bank will probably chjarge for that.
As for tax I hacve no idea but DWP might be best to advise on how they treat your pension. If i remeber correctly State Pension is below the personal allowance limit so taxable but no tax. Overal tax depends on your other income obviously.
https://www.gov.uk/state-pension-if-you-retire-abr...
Or you can be paid to a UK account and transfer yourself, youyr bank will probably chjarge for that.
As for tax I hacve no idea but DWP might be best to advise on how they treat your pension. If i remeber correctly State Pension is below the personal allowance limit so taxable but no tax. Overal tax depends on your other income obviously.
https://www.gov.uk/state-pension-if-you-retire-abr...
I have 2 friends who are retired and live in Malta.
Pension goes into the UK account and they have linked their Revolut Card to the account. Once a month or when needed they transfer in £££ to the card and as they spend in EUR they get the daily rate and it's always very aggressive; better than any bank rate or high street rate. 20-30 pips north of the interbank rate.
Pension goes into the UK account and they have linked their Revolut Card to the account. Once a month or when needed they transfer in £££ to the card and as they spend in EUR they get the daily rate and it's always very aggressive; better than any bank rate or high street rate. 20-30 pips north of the interbank rate.
My wife was a senior Civil Servant with DWP. She receives her tax-paid pension each month but I chose when to convert to Euros, in France. This is far better than any exchange on a given date. FX Cos are taking a fee for any service that they provide. If they are bearing the risk, you are bearing the cost of that decision.
Regarding tax, she pays a 40% rate in the UK, and then in France she pays some more on our annual tax return.
These basic rules are EU-wide, so unless tax rates in Ireland are massively lower, I seriously doubt you can gain an advantage.
Regarding tax, she pays a 40% rate in the UK, and then in France she pays some more on our annual tax return.
These basic rules are EU-wide, so unless tax rates in Ireland are massively lower, I seriously doubt you can gain an advantage.
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