Moving to Ireland from the US | Expat Taxes

Moving abroad is a big decision, which is why many Americans consider Ireland. It is the only English-speaking country in the European Union, has a rich culture, and because of the close relationship to the US, the transition to Ireland is much easier than the rest of Europe. However, there are some things Americans must keep in mind, such as residency obligations, taxes, and the cost of living. Ireland is beautiful, but also very expensive!

This is a comprehensive guide to the documentation and the banking, taxes, and retirement plans you’ll need to consider when moving to Ireland from the US.

Introduction

The increase in American citizens moving to Ireland is mainly because of the expanding tech industry, the shift to remote work, and the increase in retirees to the laid-back lifestyle Ireland provides. Some of the biggest retirees are American citizens because of the accessible socialized medicine. Some of the biggest draws include:

• Visa Flexibility: Numerous options are available for retirees, entrepreneurs, students, and employees.
• Cultural Compatibility: The shared language and the rich Irish-American heritage make it very easy to adapt and integrate.
• Healthcare and Safety: Ireland provides universal healthcare, with very low crime rates.
• European Access: Ireland provides easy access to the rest of the European Union and guaranteed travel throughout Europe.

You may find that healthcare is more affordable, social life is more community-focused, and overall living costs are lower (this varies depending where in Ireland you live).

Residency and Visa Options

Americans can visit Ireland without a visa for a total of 90 days, but for your stay to be longer, you will need to obtain legal residency. The most common ways are:

• Stamp 0 Residency (Retirees): for those who can support themselves financially and do not intend to work in Ireland.
• Employment Permits: for skilled workers in areas like ICT, and healthcare who have job offers in Ireland.
• Entrepreneur and Startup Visas: for those who plan to start a business, or invest in Ireland.
• Student Visa: for those who will be studying full time at an Irish educational institution.
• Citizenship by Descent: If you have Irish citizenship grandparents or parents, you may be entitled to an Irish passport.

Tax Implications

Tax planning is a crucial activity that you need to complete before you relocate. The U.S. and Ireland have unique regulations that apply to your income, assets, and retirement accounts.

• U.S. Worldwide Taxation: All U.S. citizens need to file a federal tax return every year, regardless of where in the world they reside.
• Ireland’s Residency Test: If you are in Ireland for 183 days or more within a tax year, you will be considered a tax resident.
• Tax Treaty Benefits: The U.S. Ireland treaty was designed to minimize the probability of double taxation and therefore outlines tax treaty benefits.
• Foreign Earned Income Exclusion (FEIE): The IRS lets qualifying citizens living abroad exclude some income from U.S. taxes under FEIE.
• FATCA & FBAR Reporting: Americans and U.S. residents (including dual citizens) and green card holders must file Form 8938 to report foreign accounts and must report foreign accounts, cash, and securities under FBAR.

Because the overlap of these two tax systems can get complicated, most U.S. expats in Ireland work with cross-border tax advisors.

Cost of Living, Banking, and Currency

Having realistic financial expectations makes it easier to move abroad.

• Banking: Opening an Irish bank account is necessary for day-to-day banking. Typically, you need to show proof of address to open an account.
• Currency: The euro (EUR) is used in Ireland. U.S. retirees will need to pay attention to currency exchange rates when drawing pensions.
• Living Costs: Dublin’s housing costs are among the most expensive in Europe, but regional cities like Cork, Limerick, or Galway are much more affordable. Compared to the U.S., essential groceries and healthcare are generally much cheaper.

Healthcare and Insurance

Public healthcare is available in Ireland under the Health Service Executive (HSE) branch of the government. Residents have access to care, but there are usually long wait times. Expats will usually get private health insurance to bypass those wait times and have more choices.

Expats must:

• Register with a general practitioner (GP).
• Review international coverage from U.S.-based insurers.
• Explore private plans for comprehensive care.

Retirement and Social Security

If you are an American considering retirement in Ireland, there are some rules, which help protect your benefits:

• Totalization Agreement: This agreement stops you from paying Social Security taxes two times and permits you to consolidate work credits.
• U.S. Social Security Payments: You are eligible to receive these payments wherever you are living in Ireland.
• Pension and IRA Transfers: You have to be careful about the movements of retirement savings to avoid penalties and unintended taxes.

Preparing Financially Before You Move

A move abroad touches every aspect of your financial life. Tasks that should be done before leaving the U.S. include:

• Retirement accounts and taxable investments need to be reviewed.
• U.S. banking relationships should be left and your estate plan must be updated to reflect your Irish residency.
• Finally, you will need the services of a cross-border tax and financial advisor.

Final Thoughts

There are many reasons why someone would want to move to Ireland from the U.S. You can be looking for a job, want to retire, or you just want a different lifestyle that living abroad can provide. The most important factor in ensuring you have a smooth move is having a plan. By having an understanding of the financial aspects, visa options, and tax obligations, you will be able to avoid the most expensive surprises that come with such a move. 

If you have everything and the necessary professionals to guide you, you will be ready to move to Ireland. Reach out to us for professional assistance. Dimov Audit stands ready to provide 360-degree support.

FAQs

Can a U.S. citizen live permanently in Ireland?

Yes—with an approved long-stay permission (e.g., work permit, Stamp 0, study, family) or Irish/EU citizenship, including by descent.

Do U.S. citizens have to pay taxes if living in Ireland?

Yes—U.S. citizens file U.S. taxes worldwide and may owe Irish tax if resident or with Irish-source income; treaty/credits can offset double tax.

How do I move my retirement funds to Ireland?

Direct transfers from U.S. IRAs/401(k)s to Irish pensions are limited and often taxable—most expats keep accounts in the U.S. and plan withdrawals.

What is the cost of living in Ireland compared to the U.S.?

Generally higher in Dublin (especially housing); many regional cities are cheaper, while groceries/healthcare can be lower than in the U.S.

Is healthcare free in Ireland for U.S. expats?

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No—public care is subsidized, not free; eligibility depends on residence, and many expats buy private insurance to reduce wait times.