How Expats in Ireland Can Plan for the Irish Budget 2026

The annual Irish Budget often brings changes that directly affect expats in Ireland. With announcements for 2026 just around the corner, now is the perfect time to take stock of your tax position.

From income tax bands to property-related reliefs, many different proposals can be tabled in the Budget for expats and Irish people alike. Even a small tweak by the Irish Government might open up new opportunities to save – or lead to unexpected costs when the Budget is written into law. And the bottom line is, you don’t want to leave more money on the table than you have to – no matter your nationality!

So, by the time the Budget is announced on October 7th, you’ll want to be sure your income, property, pension, and investment plans are ready for any changes that could affect Irish expats like you. 

Not sure where to start? Our team of expat tax specialists in Ireland are here to help you manage any changes and make the smartest financial choices as an expat.

Step 1: Check Your Residency Status

If you’re new to Ireland or considering a move, the first step is to check whether the country will treat you as a tax resident. This is important as your residency status decides which Budget changes affect you personally.

• If you’re a resident, Ireland can tax your worldwide income and gains (not just what you earn in Ireland).
• If you’re a non-resident, Ireland will only tax your Irish income and gains from Irish property and land (for example, rent from a property in Ireland).

But what if you split your time between Ireland and another country? Great question. Irish residency rules are a little more complex in this scenario, and depend on how many days you spend in Ireland each year.

Let’s take a closer look at what that means. 

How Tax Residency Works in Ireland

Whether or not you’re classed as an Irish tax resident is based on how many days you spend in Ireland in a tax year (the tax year runs from 1 January to 31 December):

• 183-day rule: If you spend 183 days (or more) in Ireland in a single tax year, you’re automatically considered a tax resident.
• 280-day rule (over 2 years): If you spend 280 days (or more) in Ireland over two back-to-back tax years, you’re also considered a tax resident. But there’s one more rule – in the second year, you must spend at least 30 days in Ireland.

Tip: Even short trips count as a “day,” so it’s easy to reach residency thresholds without realising it.

Once you know your status, it’s much easier to understand which Budget changes affect you and which don’t.

Step 2: Review Your Income and Deductions

Even long-term expats in Ireland can unintentionally overlook important aspects of their tax situation, particularly if they’ve only concentrated on the fundamentals.

A quick review now will keep you poised to adapt to any Budget changes. When you know exactly what you’re paying – and where you’re saving – you can adjust if rates, bands, or credits shift.

Here’s what you need to do: 

• List all your income: Include salary, rental income, pensions, dividends, and any other money you receive in Ireland and abroad (if you’re a tax resident).
• Check what’s deductible: Some expenses will reduce your taxable income. For instance, contributions to Irish pensions, certain role specific expenses, and even work-related expenses.
• Review tax credits: These directly reduce the tax you pay, so check (and double check) that you’re claiming everything you’re entitled to. This might include PAYE credit, medical expenses, Age Credit (for those over 65), or Dependent Relative Credit.

Sorting this out now can take some of the stress out of Budget season. You’ll know exactly where you stand, changes won’t catch you off guard.

Step 3: Review Property, Pensions, and Investments for Irish Tax Purposes

The 2026 Budget could impact expats in several ways – updates to property taxes or reliefs, new rules on pension contributions, changes to tax on capital gains, stamp duty, (hopefully!) changes to the offshore fund rules and more. 

Pay attention to the following: 

• Property: If you own property in Ireland, take a quick look at your rental income, mortgage interest relief, and any other property-related deductions. Budget changes could shift what you pay or what you can claim.
• Pensions: Irish pension contributions come with some nice tax breaks. Knowing how much you’re putting in now makes it easier to see how any Budget updates might affect your tax relief or retirement plans.
• Investments: Check your shares, funds, or other investments. Budget announcements can sometimes change taxes on dividends, capital gains, or investment reliefs, which could impact your returns.

It makes sense to take a close look at your property, retirement savings, and investment holdings now to ensure compliance with Irish tax laws and make sure you’re ready to respond to changes.

Step 4: Understand Cross-Border Tax Implications

If you’re planning your move to Ireland – or you’ve recently arrived – understanding how your income or assets outside the country affect your tax position is very important. If you’ve been living here for a while, it’s equally important to make sure you’re fully up-to-date on your cross-border finances.

Here are a few areas that often have the biggest impact for expats so you’re prepared to respond to any changes the Budget might bring.

Double Taxation Agreements (DTAs)

Ireland has agreements with many nations – including the US, UK, Canada, Switzerland, and several other European countries – to ensure you’re not taxed twice on the same income. These treaties decide which country has the right to tax certain types of income and provide ways to reduce or eliminate double taxation.

Budget changes can sometimes affect how DTAs normally work. For example, in its Budget for 2025, Ireland introduced a Participation Exemption for Foreign Dividends. Under this change, certain dividends received from subsidiaries in EU/EEA countries – or from countries with which Ireland has a DTA – can be exempt from Irish tax.

If you earn income from abroad (like rental income, dividends, or pensions) it’s important to know which DTAs apply to you.

Currency Exchange Implications

If you earn or hold money in another currency, changes in exchange rates can affect the amount of income or gains you report in euros. 

This is particularly important for investments, foreign property, or savings accounts, as even small fluctuations can impact your taxable income or capital gains. For example, dividends paid in a foreign currency may be worth more or less when converted to euros, which could change the tax you owe.

Foreign Pension Contributions

Contributions to pensions in another country may be treated differently for Irish tax purposes depending on your residency, the Double Tax Agreement, Revenue rules and the foreign country’s rules.

Ireland’s 2023 Budget changed how foreign pension lump sums are taxed. Under the Finance Bill 2022, qualifying foreign pensions can now receive the same tax-free lump sum as Irish pensions – up to €200,000 under certain conditions.

Step 5: Consolidate Your Financial Documents

To stay prepared for any Budget changes that could affect you as an expat, it helps to have a clear picture of your current finances. 

Here’s what to collect:

• Proof of income: Pay slips, Employment Detail Summaries, rental income statements, and reports for dividends or other investments.
• Proof of deductions and credits: Receipts for pension contributions, medical expenses, or other deductible costs.
• Property documents: Mortgage statements, rental agreements, and records of property-related expenses.
• Investment and pension documents: Statements for Irish or foreign investments, pension accounts, and any related tax forms.
• Residency records: A log of your travel dates and residency information for Ireland and any other country you spend time in.

Gathering all your documents now helps clarify how new rules might impact your income, deductions, or credits.

Step 6: Plan for Different Scenarios  

Running “what-if” scenarios can help you understand how potential Budget changes might affect your finances. For example:

• Dividends and capital gains: If the tax on dividends or capital gains changes, it could impact your investments. Running a scenario shows you how much extra tax you might pay or how your investment returns could be affected.
• Higher tax bands: Imagine the Budget increases the threshold for the higher income tax rate. How would that affect your take-home pay? Would you end up paying more tax, or less? In Budget 2025, the higher income tax rate threshold increased from €42,000 to €44,000. This change meant that individuals earning between €42,000 and €44,000 would pay tax at a lower rate, potentially increasing their take-home pay.
• Pension reliefs: Changes to pension rules or tax relief could affect how much you save for retirement. Planning ahead helps you determine whether you should adjust contributions now to take full advantage of current reliefs.

Explore different possibilities and be ready for them if they come up in the annual budget. 

Step 7: Get Help from an Irish Expat Tax Specialist

Budget changes are complicated, and even more so if you’re an expat with income or assets both in Ireland and abroad. Additionally it takes time before the final version of the proposed Budget makes its way into the law so expert advice can be needed to understand what this means for your situation.

While they can affect everyday things in Irish society like grocery prices, living expenses, rental prices, and electricity costs, the impact goes much further.

Small changes in tax rates, reliefs, or allowances can have a big influence on your financial situation in Ireland, leaving it hard to know where you stand. The good news? Speaking with an expat tax specialist can help in many ways, including:

• Understanding the rules: Tax professionals can clearly explain how Irish tax laws and new Budget changes apply directly to your personal financial situation.
• Finding potential savings: They have a keen eye for deductions, credits, and tax-saving strategies that you might otherwise overlook.
• Avoiding mistakes: By helping you stay compliant with both Irish and international tax rules, a professional can significantly reduce your risk of penalties.
• Navigating global finances: If you have income from another country, they can guide you through complex cross-border rules and make sure you’re not paying a cent more in tax than you have to.
• Maximising your pension: They’ll help you figure out the best way to contribute to your pension, making sure you get the most out of the available tax breaks.
• Handling property taxes: Whether it’s rental income or an allowable deduction, they can walk you through the specifics of managing your property’s tax obligations.
• Helping with investments: An expat tax advisor can work with your financial advisor to help you set up your investments in a more tax-efficient way. The result? You keep way more of your returns.
• Ensuring proper documentation: They’ll help you organise and prepare all the necessary paperwork, receipts, and statements for accurate tax reporting.
• Providing ongoing support: Their support doesn’t end after the Budget is announced. They’re there for you all year long, helping you stay on top of the new rules.

Let Expat Taxes Help You Stay Ahead of Budget Changes

While you embrace Irish culture, let us help you make sense of Irish tax rules, stay fully compliant, and plan ahead to protect your finances.

We work with individual expats, and we also offer support for businesses. Whether you’re an expat entrepreneur or a company with global mobility needs, we can handle employee tax compliance, cross-border payroll, ongoing tax planning, and other services.

Book a consultation with Expat Taxes today for personalised guidance tailored to your situation.

Disclaimer:

The material in this article is for general information purposes only and does not constitute legal or taxation advice. Legal, financial, investment and taxation advice should be sought before acting or refraining from acting. All information and taxation rules are subject to change without notice. Expat Taxes Limited and RemitEase Limited (hereafter ‘the parties’) accept no liability for any action taken based on the information in this article or any of the articles in our blog series. The parties do not provide financial planning, investment, or mortgage advice; this article is provided only for general information. We are not authorised/licensed to provide financial advice, and this article should not be considered to constitute advice of this type in any respect.