Many Irish savers are now using online platforms and overseas banks to earn better interest rates. But this raises an important question:

Do you still pay DIRT on foreign savings?

The short answer is:

Yes but it doesn’t work in the same way as Irish bank accounts.

Here’s what you need to know:

How DIRT works on Irish savings accounts

If you have a savings account with an Irish bank, things are simple.

Your bank automatically deducts DIRT (Deposit Interest Retention Tax) before paying you your interest.

The current DIRT rate is 33%.

This means:

  • The tax is handled automatically
  • You receive your interest after tax
  • You usually don’t need to do anything else

It’s straightforward and happens behind the scenes.

How foreign savings are different

When your savings are held with a bank outside Ireland, Irish DIRT is usually not deducted automatically.

This includes savings held through:

  • Raisin
  • European banks
  • Online savings platforms
  • Foreign deposit accounts

Instead, the bank pays you gross interest, and you are responsible for declaring it to Revenue.

This means there’s an extra step.

How to declare foreign savings interest

Foreign interest is declared as part of your annual tax return, usually using a Form 11.

You’ll need to include:

  • The total gross interest earned
  • The country where the bank is based
  • Any foreign tax already deducted

If you’re using FastTax.ie, we guide you through this step-by-step.

What happens if you don’t declare foreign interest?

Many savers assume tax has already been handled.

But if Irish tax hasn’t been paid, Revenue may later:

  • Charge the tax owed
  • Apply interest
  • Apply penalties

Declaring your interest correctly ensures you remain fully compliant and avoids problems later.

 

FastTax.ie makes declaring foreign interest simple

Declaring foreign savings interest doesn’t need to be complicated.

FastTax.ie guides you through the process in plain English.

We help you:

  • Enter your foreign interest correctly
  • Complete your Form 11
  • File safely and confidently

Without accountant fees or Revenue confusion.

Recent Posts