Savings
Interest from a foreign bank account: how it is taxed
Last updated 16 October 2026
Interest from an EU bank is taxed at 33% on your return. From the UK or US, it's 40% if you pay the higher rate. Late returns pay 40%.
Online banks based abroad often pay interest without deducting DIRT (the Irish tax on savings interest). The interest is still taxable in Ireland if you are Irish resident and domiciled. It is up to you to declare it and pay the tax.
Work out where the interest comes from
Revenue's test, in order:
- Is DIRT being deducted? If so, it is taxed like any Irish account and there is nothing more to pay.
- If not, where is the bank licensed? A licence in an EU or European Economic Area country makes it EU interest.
- Anything else, including the UK and the US, is non-EU interest.
An Irish IBAN, or a branch in Ireland, doesn't make the interest Irish. What matters is whether DIRT is deducted and where the bank holds its licence (Tax and Duty Manual 08-04-12).
The rates
Tax on €1,000 of interest in 2026:
| Where the account is | Rate | Tax |
|---|---|---|
| Irish bank or credit union | DIRT, deducted by the bank | €330.00 |
| EU or European Economic Area bank, declared on time | DIRT rate, on your return | €330.00 |
| UK, US or other non-EU bank, standard-rate taxpayer | DIRT rate, on your return | €330.00 |
| UK, US or other non-EU bank, higher-rate taxpayer | Your top rate, on your return | €400.00 |
| Any foreign bank, not declared on time | Higher rate | €400.00 |
Non-EU interest is taxed at the higher of the DIRT rate and your marginal rate. In every case there is no USC; PRSI may apply.
Declaring it
- PAYE workers with income outside PAYE under €5,000 file Form 12 in myAccount. Under Foreign Income, choose ‘EU Deposit Interest’ or ‘Non-EU Deposit Interest (includes UK Deposit Interest)’.
- Self-assessed: on Form 11, section F (Foreign income), under the matching heading.
Enter the full interest, before any foreign tax, converted to euro.
Tax already taken abroad
Some countries withhold tax from interest. If Ireland has a tax treaty with that country, the treaty may limit that tax, and Ireland then gives a credit for it. If a bank in a treaty country withheld 15% of €1,000, the €150.00 comes off the €330.00 Irish tax, leaving €180.00 to pay. Tax withheld above the treaty rate has to be reclaimed from the other country.
Revenue already knows
Under the EU and international exchange agreements, banks in over 100 countries report Irish residents' accounts and interest to Revenue. If you open an account in a country outside those agreements, you must file Form 11 for that year. Give details of the account, even if you would not otherwise file.
See the Revenue page on foreign deposit income for more, and DIRT on Irish accounts for comparison. The DIRT calculator shows the interest and tax year by year.
Work it out
Sources
- Revenue: What DIRT rate is applicable? (33% on deposit interest) (checked 25/10/2026)
- Revenue: Deposit interest: DIRT is a final liability, no USC on deposit interest (checked 16/10/2026)
- Revenue: How do you declare deposit interest? (checked 16/10/2026)
- Revenue: Tax rates, bands and reliefs (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.