Opening a Bank Account & Managing Your Taxes in Ireland

Jump right in:

• How to open a bank account in Ireland
• What are the requirements to open a bank account as a non-resident?
• Top banks in Ireland
• What is the tax system like in Ireland?
• Types of taxes in Ireland
• Taxes for self-employed people

How to open a bank account in Ireland

Learning how to open a bank account in Ireland is quite simple, even for non-residents. Unlike other countries where you need to have a tax number, having a Personal Public Service (PPS) number is not a legal requirement for opening a bank account. If the bank requires one and you don’t have it, you may need to choose another bank or provide extra documentation.

Can I open a bank account online?

Yes, it is possible to open a bank account online in Ireland, but it depends on the bank. While many traditional banks allow you to start the process online, you may still need to post documents or visit a branch to verify your identity. Proof of identity and address is almost always required.

At the same time, digital-only banks are becoming increasingly popular in Ireland. These banks allow you to open and manage an account entirely online through an app, with no need to visit a branch. Keep reading to see some of the most popular online banks in Ireland.

What are the requirements to open a bank account as a non-resident?

If you want to open a bank account before coming to Ireland or before you have a residence permit, you can still do so through some banks. To open an Irish bank account as a non-resident, you will primarily need to provide two documents: proof of identification and proof of address.

Required documents

• Proof of identity * This can be in the form of a valid passport from your home country, a driver’s license, or an EU national identity card.

• Proof of address

        *  If you have already established residence in Ireland, this can be in the form of a utility bill or your housing lease. 
        *  If you have not established residency yet, or have not lived there long enough to get a utility bill, you can use a utility bill or bank statement from your previous place of residence. If you do, keep in mind that you may be asked for two documents verifying your previous address. 
        *  Many banks will not accept a mobile phone bill as a proof of address. Make sure you bring other utility bills such as water, electric, or gas. 
  

After gathering your documents, you need to get your copies certified, usually by a solicitor, embassy or public notary. You should also keep in mind that there may be additional requirements depending on the bank. In many cases, you’ll be required to verify your identity either in person at a branch or through a video call.

Are there any bank fees?

Whether or not your bank will require a fee or minimum deposit depends on the specific bank that you use. In general, most banks in Ireland do not require a fee in order to set up an account.

Most banks in Ireland don’t charge a fee to open an account. However, some may apply monthly or quarterly maintenance fees for personal current accounts, and there can also be charges for services like issuing or using a debit card or withdrawing cash from ATMs. Irish banks are also required to collect a government stamp duty of 0.12 EUR (approx. 0.14 USD) on each ATM withdrawal or debit card purchase, capped at 2.50 EUR (approx. 3 USD) per year. That said, many banks offer basic accounts that are free of charge. To know exactly what fees may apply, it’s best to check directly with the bank you plan to open an account with.

Top banks in Ireland

Some of the top banks in Ireland include national and international institutions. The most popular national ones include:

• Bank of Ireland
• Allied Irish Banks (AIB)
• Permanent TSB

Top International Banks in Ireland

• CitiBank Europe
• Bank of Montreal Ireland PLC
• BNP Paribas
• HSBC Ireland

Online Banks in Ireland

Some of the top online banks in Ireland are:

• Revolut
• Bunq
• Wise
• Tomorrow

What is the tax system like in Ireland?

Ireland’s tax year runs from 1 January to 31 December. The country has a progressive tax system, which means that people with higher incomes pay a greater share of income tax. According to the Department of Finance, the top 10% of earners contribute roughly two-thirds of all income tax in Ireland.

Residents are taxed on their worldwide income, while non-residents are taxed only on income earned in Ireland. The Irish system includes several types of taxes and offers wide range of tax credits and reliefs, which residents may qualify for depending on their situation.

Who is considered a tax resident in Ireland?

As an expat, you will be considered a taxable Irish resident if you meet one of the two residency criteria:

• you have lived in Ireland for at least 183 days in one tax year, or
• you have lived in Ireland for at least 280 days over the period of two years.

To pay taxes, you’ll need a Personal Public Service (PPS) number, which your employer uses to register you for payroll under the PAYE system. You can find details on how to apply for a PPS number in the Working in Ireland section of this guide.

Does Ireland have double taxation?

Ireland has Double Taxation Agreements (DTAs) with over 70 countries to not tax the same income twice.

If you’re resident and domiciled in Ireland, you are taxed on your worldwide income. However, if you’ve already paid tax on income earned abroad, you may claim credit for foreign tax paid under the terms of DTA. If you’re non-resident but pay tax both in Ireland and in another country with a DTA, you may be able to claim tax relief from your country of residence.

You can find the full list of Ireland’s agreements and details of each treaty on the Revenue website.

Tax credits in Ireland

Tax credits reduce the amount of income tax you pay after your tax has been calculated. Everyone who pays tax in Ireland is entitled to basic tax credits and you may also qualify for additional ones depending on your situation.

Everyone is entitled to a Personal Tax Credit, and the amount depends on whether you are single, married, in a civil partnership, widowed, or separated. Revenue applies this credit automatically, while other specific credits need to be claimed separately.

You are also entitled to the Employee Tax Credit if:

• If you are employed
• receiving a pension
• getting a taxable social welfare payment

Married couples and civil partners can share their tax credits and rate bands, and those caring for dependents at home may qualify for a Home Carer Tax Credit.

Some additional tax credits you can claim:

• Age Tax Credit
• Blind Person’s Tax Credit
• Dependent Relative Tax Credit
• Employee Tax Credit
• Guide Dog Allowance
• Home Carer Tax Credit
• Incapacitated Child Tax Credit
• Personal Tax Credits
• Rent Tax Credit
• Seafarers’ Tax Allowance and Fisher Tax Credit
• Single Person Child Carer Credit
• Widowed Parent Tax Credit

Within each of these examples are other tax credits and relief that Irish residents may apply for. For a more detailed look, please see the Irish Tax and Customs website.

If you arrive in Ireland in the middle of the tax year, and you know you will stay in the country for the following year, you can apply for a split-year treatment during your first year. This allows you to be treated as a resident from the date you arrive, but only for employment income earned in Ireland after that date.

Types of taxes in Ireland

Ireland has many different types of taxes that expats will need to pay dependent on their individual circumstances. This includes property tax, tax on gifts, gains, and inheritance, and even tax on extra income such as money from rentals, social welfare, and more.

Income tax

Income tax in Ireland is charged as a percentage of your earnings and is generally collected through the Pay As You Earn (PAYE) system. Under PAYE, your employer automatically deducts the correct amount of tax from your wages and pays it to Revenue on your behalf.

PAYE deducts three different amounts:

• Income tax
• Pay Related Social Insurance (PRSI)
• Universal Social Charge (USC)

Income tax rate in Ireland

In Ireland, income tax is charged as a percentage of your earnings, with two main tax bands. The first portion of your income is taxed at the standard rate of 20%, while income above a certain threshold is taxed at the higher rate of 40%.

Your tax band and rates depends on your personal situation:

Pay Related Social Insurance (PRSI)

PRSI contributions fund social welfare benefits and pensions.

• If you’re earning 352 EUR (410 USD) or less per week, you don’t pay PRSI.
• If you earn over 352 EUR (410 USD) per week, you pay 4.2% on all your earnings.
• Your employer also contributes separately on your behalf.

Universal Social Charge (USC)

USC is a tax payable on your total income. Depending on your circumstances, you pay USC at the standard rate or the reduced rate. Total income for USC purposes includes things such as:

• employment income
• taxable employer benefits
• self-employed income
• rental income
• share option gains
• dividend income

The USC is another tax on your gross income. You pay USC if your total income exceeds 13,000 EUR (15,115 USD) per year.

People aged 70 or older or medical card holders earning under 60,000 EUR (69,770 USD) qualify for reduced rates.

Taxes for self-employed people

If you’re self-employed in Ireland, you must register with Revenue and pay tax under the self-assessment system. This means you are responsible for calculating, reporting, and paying your own taxes each year.

You’ll need to register through the Revenue Online Service (ROS) and file Form 11, which includes your income details and deductions. Taxes for self-employed people cover the same areas as employees like:

• Income Tax
• Universal Social Charge (USC) and
• Pay Related Social Insurance (PRSI)

You must pay Preliminary Tax (an estimate of what you’ll owe for the current year) by 31 October each year and submit your final tax return for the previous year at the same time. If you file and pay online via ROS, the deadline is usually extended to mid-November.

Self-employed workers can claim normal tax credits and certain business expenses, such as rent, utilities, equipment, or professional fees. You must also keep proper business and accounting records in case of a Revenue audit.

If your annual turnover exceeds the VAT registration threshold, you’ll also need to register for VAT.

For step-by-step instructions, see the Irish Tax and Customs page on filing for self-assessment.