NZ vs Ireland Tax — Side-by-Side Comparison for 2025

Retirement: KiwiSaver vs Ireland's auto-enrolment pension

KiwiSaver is a mature opt-in scheme (launched 2007) with a compulsory auto-enrolment trigger for new employees aged 18–65 and an employer minimum contribution currently at 3% of gross wages, rising to 3.5% from 1 April 2026 and 4% from 1 April 2028. Employee minimum is also 3%, with voluntary rates up to 10%.

Ireland's auto-enrolment scheme was legislated in 2023 but delayed to 2026. When live, it will start at employer 1.5% / employee 1.5% contributions and ramp over 10 years as follows:

Ireland also allows tax relief on voluntary pension contributions at your marginal rate (20% or 40%), subject to age-related contribution caps: 15% of net relevant earnings under age 30, rising to 40% at age 60+. This tax relief is absent from KiwiSaver employee contributions (though member tax credits and employer contributions are untaxed at source).

Currently (pre-2026), Irish workers largely rely on voluntary occupational pension schemes or PRSAs. Contribution levels are far below KiwiSaver's 6% combined minimum — meaning New Zealand workers are broadly better served by mandatory retirement savings in the 2025 comparison.

If you're moving NZ → Ireland

• Visas: New Zealanders may enter Ireland on the Stamp 0 (zero) visitor permission initially. Longer-term work requires a Critical Skills Employment Permit (Stamp 1G) or General Employment Permit (Stamp 4 after 5 years). Irish citizenship via naturalisation requires 5 years of lawful residency.
• Tax residency: You become Irish tax-resident after 183 days in a calendar year (or 280 days combined over two years). Irish income tax, USC, and PRSI apply to Irish-source income immediately; worldwide income applies once you're ordinarily resident and domiciled.
• PRSI: Applies from your first day of Irish-source employment — no waiting period. Class A1 (employee rate 4.1%) applies above the weekly earnings threshold.
• First-year USC reduced: New arrivals who were non-resident for the full preceding year may qualify for split-year treatment — USC applies only from the date of arrival, not the full calendar year.
• Pension setup: If your employer doesn't offer an occupational pension, set up a Personal Retirement Savings Account (PRSA) to capture tax relief at your marginal rate while auto-enrolment phases in from 2026.
• KiwiSaver: Leave your KiwiSaver balance in NZ — there is no formal portability to Irish pension products. It continues to grow under NZ PIE tax rules. You can withdraw at NZ retirement age (currently 65).

If you're moving Ireland → NZ

• Tax residency: NZ tax residency triggers after 183 days in any 12-month period, or earlier if you establish a permanent place of abode. Irish residency ends based on Irish rules (183 days / ordinary residence). The 1988 DTA prevents double taxation on most income types.
• Irish RAC/PRSA as FIF: An Irish RAC (Retirement Annuity Contract) or PRSA held by a New Zealand tax resident is treated as a Foreign Investment Fund (FIF) under NZ rules — unless your total cost in offshore portfolio investments is below the NZ$50,000 de minimis threshold. Above that threshold, the Fair Dividend Rate (FDR) or Comparative Value (CV) method applies to annual investment returns. Take advice early, as cost-basis calculations at the date of NZ residency are needed.
• No DTA pension exemption for private pensions: Under Article 18 of the NZ–Ireland DTA, government pensions are taxed in the source country; private pensions (including occupational schemes, PRSAs, and RACs) are taxed in the country of residence. Once you're NZ-resident, Irish pension withdrawals are taxed in NZ at NZ rates.
• KiwiSaver entry: If you take up NZ employment, you'll be automatically enrolled in KiwiSaver. If you're self-employed or not working, you can opt in voluntarily. There is no transfer mechanism from Irish pension products into KiwiSaver.
• Lower take-home at mid incomes: The absence of a NZ tax-free threshold means take-home at $50k–$120k is typically lower than in Ireland for the same nominal salary before USC. However, Ireland's USC and PRSI mean the gap reverses at higher incomes — NZ is meaningfully lower-tax above €80k on a combined-levy basis.