Opening a bank account in Ireland as an American is straightforward — once you know what paperwork you need. Irish banks require proof of identity and address, and most Americans are surprised to discover that their standard US driving licence won’t always suffice. This guide covers banking in Ireland for American expats, how Irish income tax works, and what you still owe the IRS once you’ve made the move.
Opening a Bank Account in Ireland as an American
Ireland has three main high-street banks: AIB (Allied Irish Banks), Bank of Ireland, and Permanent TSB. All three accept non-Irish residents, but the process takes preparation. You cannot walk into a branch on arrival day and leave with an account open.
Plan to spend two to four weeks gathering documents. Most banks process your application within five to ten working days once they have everything in order.
What Documents Do You Need?
Every Irish bank requires two things: proof of identity and proof of address. For Americans, the accepted documents are usually:
- Photo ID: Your US passport. A US driving licence is sometimes accepted but not always — bring your passport to be safe.
- Proof of address: A utility bill, lease agreement, or official letter dated within the last three months. This must show your Irish address, so you’ll need to sort accommodation first.
- PPS Number: Your Personal Public Service number is Ireland’s equivalent of a Social Security number. You’ll need this before your bank account application is complete. Apply at your local Intreo Centre — the process takes around five working days.
Some banks also ask for evidence of income or employment, particularly if you’re applying for a current account with an overdraft facility.
Which Irish Banks Accept American Expats?
AIB is often recommended for new arrivals. Their branch network is wide and their staff are used to dealing with non-Irish customers. Since July 2026, AIB charges a flat €6 monthly fee on personal current accounts, replacing its old quarterly fee structure. The fee is waived for specific groups — including customers aged 66 and over, students, and account holders paying an AIB mortgage from the account — rather than by keeping a minimum balance.
Bank of Ireland offers a similar package. Their Explore Account charges €6 per month, with fees waived if you maintain a €2,500 balance or receive a salary payment each month.
Credit unions are worth considering too. Ireland has around 190 credit unions across the country (the number has fallen sharply over the past decade due to ongoing mergers). They tend to have lower fees and are community-based. They’re particularly useful in smaller towns and rural areas where the big banks have reduced their presence in recent years.
Digital Banks: The Easiest Starting Point
Many Americans find the easiest approach is to open a Revolut account first. Revolut is fully regulated in Ireland and accepted for direct debits and salary payments. You can open an account from your phone in about 15 minutes. It requires a passport photo and a selfie — no proof of address needed.
Revolut works well for day-to-day spending. Around 3.4 million people in Ireland use it — more than 80% of the adult population. For larger transactions, savings, or mortgage applications, you’ll eventually want a traditional bank account alongside it.
Wise (formerly TransferWise) is not a full bank but is excellent for receiving US dollar payments into an Irish account or sending money between the US and Ireland. Their exchange rates are far better than traditional banks.
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Understanding Irish Income Tax
If you work or earn income in Ireland, you’ll pay Irish tax. The system is straightforward once you understand the three main deductions.
The Three Main Deductions: Income Tax, USC, and PRSI
Ireland uses a two-rate income tax system. The standard rate is 20%, applied on the first €44,000 of income for a single person. Income above that is taxed at 40%.
On top of income tax, you pay the Universal Social Charge (USC). This is a separate levy that applies to most income. The approximate rates for 2026 are:
- 0.5% on income up to €12,012
- 2% on income between €12,013 and €28,700
- 3% on income between €28,700.01 and €70,044
- 8% on income above €70,044
PRSI (Pay Related Social Insurance) is a 4.2% employee contribution from January to September 2026, rising to 4.35% from 1 October 2026. This covers entitlements like the state pension, maternity benefit, and illness benefit. If you’re employed, your employer deducts this automatically. Self-employed Americans pay Class S PRSI at the same rate on net income.
Tax Credits That Reduce Your Bill
Irish tax credits reduce the actual amount of tax you pay — they’re more valuable than deductions. Every resident gets the Personal Tax Credit of €2,000 per year. Employees also get the Employee Tax Credit of €2,000 per year. That’s €4,000 in credits off your actual tax bill, not just off your taxable income.
To claim your credits, register with Revenue (Ireland’s tax authority) via myAccount at revenue.ie. You’ll need your PPS number to set up an account. The Irish tax year runs from 1 January to 31 December.
If you’re planning to retire in Ireland, our full Retire in Ireland guide covers pension income, the Non-Habitual Resident tax option, and what retirees typically pay in their first year.
Your US Tax Obligations Don’t End at Departure
This is where many American expats get caught out. The US taxes its citizens on worldwide income, regardless of where they live. Moving to Ireland does not exempt you from filing a US tax return.
FBAR: Report Your Irish Bank Accounts to the IRS
If the total value of your foreign bank accounts exceeds $10,000 at any point during the year, you must file an FBAR (Foreign Bank Account Report) with FinCEN. This is separate from your tax return. The deadline is 15 April, with an automatic extension to 15 October.
The penalties for missing an FBAR filing are severe. A wilful failure can result in penalties of up to the greater of roughly $165,000 (the inflation-adjusted version of the $100,000 statutory maximum for 2026) or 50% of the account balance, per violation. Most Americans in Ireland file this annually without any issue — the key is knowing about it before you open your first Irish account.
FATCA and Form 8938
Form 8938 is required under FATCA (Foreign Account Tax Compliance Act) if your foreign financial assets exceed certain thresholds. For Americans living abroad, the thresholds are $200,000 at the end of the tax year, or $300,000 at any point during the year for single filers. Married couples filing jointly have higher thresholds.
Irish banks share account information with Revenue under the Ireland-US FATCA agreement signed in 2013. That information is then passed to the IRS. Compliance is not optional.
The Foreign Earned Income Exclusion
The good news is the Foreign Earned Income Exclusion (FEIE). For 2025, you could exclude up to $130,000 of foreign earned income from US taxation, rising to $132,900 for 2026. This limit rises slightly each year with inflation. To qualify, you must pass either the Bona Fide Residence Test (living in Ireland for a full tax year) or the Physical Presence Test (present in Ireland for at least 330 days in a 12-month period).
The FEIE applies to earned income — wages, self-employment income, and business income. It does not cover investment income, pension distributions, or rental income from the US. These remain taxable in the US regardless of where you live.
The US-Ireland Tax Treaty
Ireland and the US have had a tax treaty since 1997. The treaty prevents most cases of double taxation. If you pay income tax in Ireland, you can generally claim a Foreign Tax Credit on your US return for the Irish tax paid.
The treaty also covers how US Social Security is treated. If you receive US Social Security while resident in Ireland, the treaty provides that it is taxed only in Ireland, not the US — the opposite of how most other US income is treated. You will not be taxed on it twice.
Pensions are more complex. Each type of pension — private, government, Roth — is handled differently under the treaty. A qualified accountant familiar with both US and Irish tax law is worth the investment before you retire.
For a full picture of what the financial side of life in Ireland looks like, including cost of living, healthcare, and housing, read our practical checklist for your first 90 days in Ireland and our guide to healthcare in Ireland for retired expats.
Sending Money Between the US and Ireland
If you’re moving savings from the US to Ireland, your bank’s international wire transfer service will charge you twice — once for the fee (typically $25–45 per transfer) and again on the exchange rate margin.
Wise offers mid-market exchange rates and charges a transparent fee, typically around 0.35–0.8% of the transfer amount. On a transfer of $20,000, that’s roughly $70–160 in fees — far less than most banks charge. Revolut also handles international transfers, though Wise tends to be preferred for larger amounts.
If you’re transferring a large sum — say, the proceeds of a US property sale — it’s worth consulting a currency specialist. Companies like OFX and Currencies Direct can lock in an exchange rate in advance, protecting you from fluctuations during the transfer process.
Working With an Accountant in Ireland
Banking is straightforward. Taxes are not. This is probably the most important practical step you can take as an American moving to Ireland.
You need two accountants if you’re a US citizen living in Ireland: an Irish accountant for your Revenue obligations, and a US-qualified CPA who handles expat returns. Many CPA firms now specialise entirely in American expats and work entirely online. Fees typically range from $500 to $1,500 per year for a straightforward expat return.
Start looking for your CPA before you leave the US. The demand for expat tax specialists has grown considerably as more Americans make the move to Ireland. Finding a good one takes time.
In Ireland, you can find a qualified accountant through the Institute of Chartered Accountants in Ireland (ICAI) or the Association of Chartered Certified Accountants (ACCA). Both maintain searchable directories on their websites.
For more on the practical steps of settling in Ireland, from registering your car to finding a GP, visit our Ireland planning guide.
What is the easiest way to open a bank account in Ireland as an American?
The quickest route is to open a Revolut account first — it takes around 15 minutes with just a passport photo and selfie. For a full current account with an Irish IBAN, AIB and Bank of Ireland are the most straightforward options, though you’ll need a PPS number, passport, and proof of Irish address before applying.
Do Americans living in Ireland still have to file US taxes?
Yes. The US taxes its citizens on worldwide income regardless of where they live. You must file a US federal tax return each year. However, the Foreign Earned Income Exclusion allows you to exclude up to $130,000 in foreign earned income from US taxation (2025 figure), and the US-Ireland tax treaty prevents most cases of double taxation on the same income.
How much income tax will I pay in Ireland?
Ireland taxes income at 20% on the first €44,000 (for a single person) and 40% on anything above that. You also pay the Universal Social Charge — ranging from 0.5% to 8% depending on your income level — and PRSI at 4.2% (rising to 4.35% from October 2026). Tax credits reduce your actual bill: every resident gets at least €2,000 in Personal Tax Credit annually. A tax accountant can help you claim every credit you’re entitled to.
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