{"id":668431,"date":"2026-09-02T08:44:13","date_gmt":"2026-09-02T08:44:13","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/668431\/"},"modified":"2026-09-02T08:44:13","modified_gmt":"2026-09-02T08:44:13","slug":"moving-to-ireland-the-financial-realities-americans-need-to-consider-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/668431\/","title":{"rendered":"Moving to Ireland? The financial realities Americans need to consider \u2013 The Irish Times"},"content":{"rendered":"

What is it about Americans and Ireland right now? Hollywood actors can\u2019t get enough \u2013 Olivia Wilde<\/a> extols summers at her family\u2019s Waterford home, Matthew Broderick<\/a> loves his bolt-hole in Donegal, Rosie O\u2019Donnell<\/a> describes Ireland as \u201cmy refuge and my salvation\u201d. <\/p>\n

With reviews like this, it\u2019s no wonder our stock is up. Nearly 10,000 Americans moved here last year, up from 4,900 in 2024, according to Central Statistics Office data.<\/p>\n

The number of those seeking Irish citizenship has surged, too. A record 18,910 US applicants sought citizenship here in 2025 through having a parent or grandparent born here. That\u2019s more than double the 7,726 US citizens who sought an Irish passport in 2023. <\/p>\n

\u201cWe are seeing the number increasing dramatically,\u201d says Jason Smith, cofounder and chief of financial intelligence at GlobalWealth360, which advises professionals on international mobility.<\/p>\n

[\u00a0Olivia Wilde: \u2018My family is all in Ireland right now. We still have the same house\u2019Opens in new window<\/a>\u00a0]<\/p>\n

Not everyone has Hollywood-grade resources, so if you are relocating from the US<\/a>, it pays to understand the financial implications. <\/p>\n

Housing<\/p>\n

US citizen Chelsea Lennon moved from San Diego, California, a year ago. Her husband is Irish. <\/p>\n

\u201cHe wanted to move home for years. We were waiting for the right time and then just things politically, we were not happy with where everything was going, so it was, let\u2019s go,\u201d says Lennon.<\/p>\n

Rents here are comparable to California, an expensive state. Selling their US home, they eschewed pricey Dublin for Waterford where they live mortgage-free.<\/p>\n

\u201cThat\u2019s a huge financial relief,\u201d says Lennon. <\/p>\n

Their US mortgage \u201cwasn\u2019t huge\u201d, but an annual property tax of $8,000 (\u20ac6,900) was \u201cthrough the roof\u201d, she says. <\/p>\n

\u201cWhen I saw the property tax here, I was in disbelief.\u201d <\/p>\n

\"ChelseaChelsea Lennon, who moved from California to Ireland last year <\/p>\n

The annual charges here range from \u20ac95 to \u20ac3,110 for homes valued at about \u20ac2 million. <\/p>\n

Selling their US home took three weeks. Buying a home here typically takes three to six months. As cash buyers, they concluded in eight weeks. <\/p>\n

No water bills here was a surprise too. She describes the electricity bill in her C1 energy-rated house as \u201cprobably half of what you would pay in the US\u201d. <\/p>\n

Many of those relocating here retain their US home, at least at first. Some will rent it out.<\/p>\n

Rental income from property is usually taxed in the country where the property is located. But the rent may also be subject to tax in your country of residence, depending on your circumstances.<\/p>\n

The US-Ireland Double Tax Agreement prevents you from paying tax twice on the same income \u2013 it eliminates double taxation by allowing you to claim credits for taxes paid in one country against taxes due in the other.<\/p>\n

Under the treaty, you can\u2019t be \u201cdomiciled\u201d in two places.<\/p>\n

Your domicile is broadly the country where you intend to remain or return permanently. Residency typically refers to the country where you spend most of your time and have significant personal and professional ties.<\/p>\n

The US-Ireland treaty, however, does not apply to state and local taxes \u2013 so a US person\u2019s exposure to these needs to be considered.<\/p>\n

[\u00a0We are moving home from America. Could a long house-hunting trip make us tax residents?Opens in new window<\/a>\u00a0]<\/p>\n

\u201cPeople can think, my US money and assets are only taxed in the US. My Irish income will be taxed in Ireland and never the two shall meet \u2013 but it\u2019s almost never that simple,\u201d say Jason Smith of GlobalWealth360. <\/p>\n

\u201cIf your state in the US charges a local state income tax, that\u2019s probably going to lead them to declare you an ongoing resident, even if you are going to be tax-resident in Ireland,\u201d he says. <\/p>\n

\u201cSo now you are double-taxed \u2013 at the state level in the US and in Ireland.\u201d<\/p>\n

Those moving can overly rely on the treaty, says Smith.<\/p>\n

\u201cThey say, whatever the higher tax rate, I\u2019ll pay it so that I don\u2019t have double taxation … but those tax credits under the treaty may not be available at a local level, and not many people realise that,\u201d he says.<\/p>\n

Those taxes can add up.<\/p>\n

Some metropolitan areas, such as New York City for example, also charge a local city income tax.<\/p>\n

\u201cA higher earner there might be looking at approximately 7 per cent tax at a state level, and you might be looking at another 4 per cent at a city level, so that\u2019s an 11 per cent combined tax rate,\u201d says Smith.<\/p>\n

Most US citizens will be Irish tax-resident, but non-domiciled here \u2013 so they may only have to pay Irish tax on foreign rental income brought or \u201cremitted\u201d into Ireland \u2013 more on this later.<\/p>\n

But if they are Irish tax resident and are also domiciled in Ireland, they will pay Irish tax on the rental income from the US property,<\/p>\n

New arrivals who plan to stay and want to buy a home here may face some obstacles too.<\/p>\n

Stamp 1 and Stamp 1G visa-holders may face a limited pool of lenders that require periods of residency of at least three to six months.<\/p>\n

Stamp 4 holders will have an easier time and can access Government Help-to-Buy and the First Home schemes. <\/p>\n

Filing obligations<\/p>\n

A US citizen who becomes tax-resident in Ireland will be subject to both Irish and US tax on income and gains and will be obliged to file annual tax returns in both places.<\/p>\n

Where a US citizen retains their domicile in a US state, rather than acquiring an Irish domicile, they can avail of the \u201cremittance\u201d basis of taxation for Irish tax purposes.<\/p>\n

This means they are only taxed on non-Irish source income and gains they bring, or \u201cremit\u201d into Ireland.<\/p>\n

This can provide significant tax advantages for those with foreign income and investments.<\/p>\n

To make your tax strategy as efficient as possible, Smith advises those moving here to do some pre-planning, quantifying what they will need to live while resident here \u2013 rent, mortgage, health insurance, travel, car groceries.<\/p>\n

\u201cThe most efficient way to pay for that will be from what we call \u201dclean capital\u201d \u2013 so money you earned or received before you moved here, and brought into Ireland before you became tax-resident,\u201d says Smith.<\/p>\n

This specific transfer of money will not be subject to Irish income tax or capital gains tax. <\/p>\n

\u201cOne of the best things you can do is have enough money, say for five years, to live on here before you move \u2013 if you keep that structured, you can live on that, or use it to supplement your employment income, without causing tax on it,\u201d he says.<\/p>\n

Investments<\/p>\n

Americans moving here may have a retirement or pension account, a personal brokerage account or a \u201c529\u2033 college savings account.<\/p>\n

\u201cThey often assume because of the remittance basis of taxation in Ireland, that if they don\u2019t bring that money over here, or don\u2019t sell the fund, they don\u2019t have to declare it on their Irish income tax return or pay taxes on it,\u201d says Smith.<\/p>\n

\u201cBut Ireland has complex rules around offshore funds like mutual funds, that might cause an American expatriate to have to pay Irish income tax on gains inside of the portfolio in the US.\u201d<\/p>\n

Even if they don\u2019t have gains year to year, they might, after a certain amount of time, have a \u201cdeemed sale\u201d or \u201cdeemed disposal\u201d and this could lead to tax.<\/p>\n

[\u00a0A long road to Ireland: \u2018The Irish are very secretive. They don\u2019t tell you stuff\u2019Opens in new window<\/a>\u00a0]<\/p>\n

Deemed disposal is a tax rule that treats an investment fund or exchange-traded fund (ETF) as though you sold it on its eighth anniversary, even if you did not actually sell it.<\/p>\n

\u201cIf you don\u2019t pay the tax in the US, but you do in Ireland, there might not be any tax credits to deduct against it,\u201d says Smith.<\/p>\n

\u201cThis might feel like double taxation, or it might feel like being taxed on phantom income that you didn\u2019t actually get.<\/p>\n

\u201cAs part of your pre-move, you need to look at all of your investments and make sure you are not going to have any nasty tax surprises,\u201d he says. <\/p>\n

Healthcare<\/p>\n

Americans can find it hard to get their heads around healthcare in Ireland, says Smith.<\/p>\n

They can underestimate the public system, and also they might not realise private health insurance here costs substantially less. <\/p>\n

\u201cSome assume public healthcare here might as well be nothing,\u201d he says. <\/p>\n

\u201cMy experience is that if you have an urgent issue, it\u2019s always going to be prioritised and you are generally going to get treatment.\u201d<\/p>\n

Adults opting for private health insurance pay an average premium of \u20ac1,960 a year, according to Health Insurance Authority figures.<\/p>\n

In the US, private health insurance for a family can come in at about $4,000 a month, says Smith. <\/p>\n

Insurance plans here provide greater reimbursement too, he says. US families might have to pay medical costs of $7,500 before getting a cent. Many never hit their deductible. <\/p>\n

Registering with a doctor in Ireland took six months, says Chelsea Lennon. Her experience reflects the shortage of general practitioners. <\/p>\n

Maternity rights here are significantly different.<\/p>\n

Those employed and pregnant have a day-one right to 26 weeks\u2019 maternity leave and an additional 16 weeks\u2019 unpaid maternity leave. State-paid maternity benefit is \u20ac299 per week, subject to social insurance contributions. <\/p>\n

\u201cYou don\u2019t get any kind of payment in the US. You can\u2019t lose your job for taking time off … but you feel like you have to go straight back,\u201d says Lennon. <\/p>\n

Estate planning<\/p>\n

Inheritance tax in Ireland differs significantly to the US. The tax there is levied on the estate, not the beneficiary. Also the exemption at a federal level is $15 million per person, says Smith. <\/p>\n

\u201cPeople are not even thinking about estate taxes for their kids because their whole estate is well under that amount,\u201d says Smith.<\/p>\n

The tax in Ireland levied on the beneficiary, and the \u20ac400,000 per child exemption is much lower.<\/p>\n

\u201cEven if you are not going to be domiciled in Ireland, or bring all your money here \u2013 if you are going to have more than \u20ac400,000 of equity in a house or any other assets here, you need to have an estate plan,\u201d says Smith. <\/p>\n

Parents of younger children should name guardians. <\/p>\n

In the case of a sudden or unexpected death, it\u2019s important to have nominated who is taking care of the kids immediately, says Smith.<\/p>\n

\u201cYou can have all the money in the world, but you don\u2019t want your kids going into protective custody while someone gets flown in from the US and has to navigate the Irish probate system. That would be a nightmare.\u201d<\/p>\n

Experience <\/p>\n

After a year in Ireland, Lennon has a few other observations for those following in her footsteps \u2013 she records them in her Instagram account, @fromchaostocozy_<\/a>.<\/p>\n

A US driving licence can\u2019t be swapped for an Irish one. Those relocating must take a theory test and six driving lessons. <\/p>\n

\u201cI feel, with fewer lessons, I would have been good, it\u2019s not fun. You have to pay for all the lessons again and I\u2019ve been driving since I was 15,\u201d says Lennon. <\/p>\n

She\u2019s swapped bulk-buying at Costco for smaller, more regular shopping trips.<\/p>\n

\u201cThere is such a high quality in the food here \u2013 the meat, dairy, produce, it feels like it\u2019s so much better,\u201d says Lennon. She misses fresh salsa, though.<\/p>\n

In the US, she was a business owner, selling up before moving here. She now works part-time in a remote job.<\/p>\n

\u201cI can work from home, around my daughter\u2019s school schedule, so there is a lot more balance than I\u2019m used to with just working non-stop,\u201d says Lennon. <\/p>\n

\u201cThere is no standard annual leave like there is here, and especially if you are a part-time employee, you would never have any kind of benefits that are just standard here.\u201d <\/p>\n

Her daughter is in primary school. \u201cShe loves it. Just to see her growth and how much she is thriving here, I feel like we should have done it sooner.\u201d <\/p>\n