Deposit Interest Retention Tax (DIRT) in Ireland

The information provided here is for informational and educational purposes only and does not constitute tax advice. You should consult with a qualified tax professional or adviser regarding your individual tax situation. Tax laws and regulations are complex and subject to change, and the information provided may not be applicable to your specific circumstances. We are not liable for any tax decisions or actions you take based on this information.

Last updated: September 2025 

As of 2025, the DIRT tax rate is 33% of the interest earned.

Deposit Interest Retention Tax (DIRT), often referred to as DIRT tax, is a tax deducted by Irish financial institutions from deposit interest paid or credited to the accounts of Irish residents. This means that any interest payments you receive on your savings are subject to DIRT.

• a licensed bank in any European Union (EU) Member State
• a building society in any EU Member State
• a trustee savings bank
• the Post Office Savings Bank
• a credit union

This depends on where you savings are held:

• Irish bank or credit union – They typically deduct DIRT automatically before paying you the interest, but it’s important to check your bank statement to make sure.
• Financial institution in an EU/EEA or non-EU country – No DIRT is deducted automatically. You must declare the interest yourself on your annual tax return and pay any tax due.

If DIRT has already been deducted from your savings interest, you usually only need to declare the interest if you’re filing a tax return. You must include any deposit interest you received and enter the total interest payment before the deduction of DIRT.

You might want to keep hold of your bank statements in case Revenue requests them later. Learn more about filing a tax return in Ireland.

If you’re a PAYE taxpayer, you can declare EU sourced deposit interest on myAccount, by following these instructions:

1. Sign in to myAccount.
2. Click 'Review your tax for the previous 4 years' under 'PAYE Services'.
3. Select the tax year for which you would like to submit an Income Tax Return and receive a Statement of Liability.
4. Click 'Request' to begin the process.
5. Select 'Complete your Income Tax Return'.
6. In the section 'Non-PAYE Income', select 'EU Deposit Interest (excluding UK interest)' under 'Foreign Income'.
7. Input all details of deposit interest received.
8. Complete the process, input your password and submit your Income Tax Return.

If you earn interest from accounts outside Ireland, you may already pay withholding tax on it. As an Irish resident, you still need to declare this income on your tax return and it may be subject to DIRT. To prevent this income being taxed twice (in both countries), Ireland has Double Taxation Agreements (DTAs) with other countries that limit the tax charged in the source country and allow you to claim a credit for tax already paid abroad.

For example, if an Irish resident individual earns €100 of interest in Portugal in respect of a deposit held in a bank account with a Portuguese bank.

The DTA between Ireland and Portugal limits the Portuguese tax on such interest to 15%. Ireland (being the country of residence) will then give a credit for the tax already paid in Portugal (the source country).

The Irish tax position is:

Where the source country withholds tax in excess of the rate set out in the relevant DTA, account holders will have to contact the tax authority in that country to claim any refund of tax due.

In all cases, the specific terms of the relevant DTA should be consulted.

Find out more in Revenue’s manual on the taxation of deposit interest income.

Raisin’s partner banks are all based in EU countries outside Ireland, so you will have to declare EU deposit interest when filing your tax return. In some cases, you can reduce or cancel withholding tax by submitting a certificate of tax residence from Revenue or other documentation. Details are listed alongside every offer in our savings account comparison table. You can also check the complete list of withholding taxes in each country. 

If you have any questions, contact our customer service team.

You can receive interest without paying DIRT (DIRT-free account) in certain conditions. To do this, you must complete a declaration form stating that you, your spouse or civil partner are:

• 65 years of age or over when making the declaration. In order to be exempt from DIRT over the age of 65, your total income for the year, including the interest, must be below the annual exemption limit. For 2025, this limit is €18,000 for a single, widowed, or surviving civil partner, and €36,000 for those who are married or in a civil partnership.
• permanently incapacitated due to a physical or mental disability

If you are a trustee of a special trust for permanently incapacitated individuals, you can apply for an exemption from DIRT. You must be the holder of this account. The trust must meet the following conditions:

• it is set up only for the benefit of one or more permanently incapacitated persons
• the funds of the trust are from subscriptions given by the general public
• the specified incapacitated person(s) must own the funds in the account

Learn more about how trusts work.

If you’re over 65 years of age and your income for the year is below the exemption limit, complete Form DE1 and send it to your financial institution. You can access this form by contacting your financial institution or by downloading it directly from their website.

If you’re permanently incapacitated or the trustee of a relevant trust, complete Form DE2 and send it to your Revenue Office. They will tell your financial institution that you’re exempt from paying DIRT. You can find the form at Revenue.ie.

You will need a separate form for each account you hold. Should your personal circumstances change, it may affect your exemption from DIRT. You can find out more about how a change in circumstances affects this tax.

You might be able to claim a refund if:

• you turned 65 and now qualify for the exemption
• your income temporarily exceeded the limit but otherwise meets exemption criteria
• you became permanently incapacitated
• you qualified for exemption but DIRT was still deducted

If one of the above applies to you, you can complete Form 54 Claims and send it to your local Revenue Office. Once Revenue processes your claim and accepts it, they will send you the refund.

Under the Help to Buy (HTB) scheme, first-time buyers may be able to claim back DIRT paid in the last four years. This helps cover the cost of buying or building a first home. You may be entitled to claim back income and DIRT tax paid over the previous four years.

If you’re not a tax resident in Ireland, you may not need to pay DIRT. To qualify you must:

• Be non-resident in Ireland for tax purposes.
• Complete a non-resident declaration form (your bank will provide this).
• Not pay tax in Ireland.
• Hold the account in your name only (if you have a joint account with someone who is tax resident in Ireland, the exemption doesn’t apply).

You may claim a refund of some or all of the DIRT you paid if both of these conditions apply:

• you’re not resident in Ireland for tax
• Ireland has a Double Taxation Agreement with the country of residence.

You can complete a Form IC5 to claim a refund.

If Ireland doesn’t have a Double Taxation Agreement with the country you’re resident in, you can’t get a DIRT refund. However, you might not need to pay DIRT. You can ask your financial institution if a declaration of non-residency can be submitted.

Now that you know how DIRT tax works on accounts within and outside Ireland, you might want to explore savings opportunities in other EU countries. At Raisin, you can compare competitive rates on deposit and demand deposit accounts from a range of partner banks across Europe. Simply register for a free Raisin Account, choose and apply to open an account that works for you, and transfer your funds.