What if you could invest in property…
Pay no income tax on the rent…
And pay zero Capital Gains Tax when you sell?
Sounds too good to be true?
It’s not — if you do it through your pension.
In this guide, I’ll show you exactly how to buy property with your pension in Ireland — using the correct structures, staying compliant, and building long-term, tax-free wealth.
Why Consider Buying Property Through Your Pension?
Property is one of the most trusted forms of investment.
But when held inside a pension — the tax benefits are supercharged.
Here’s what makes it so attractive:
- No income tax on rent — no USC, no PRSI either
- No Capital Gains Tax when you sell
- Real asset diversification beyond stocks and funds
- Potential for stable, long-term retirement income
- Full legal structures available for Irish residents
And yes — you can do this whether you’re self-employed or a company director.
Let’s look at a real-world example.
Real Client Case Study: John, a Developer in Galway
John ran a successful construction company — but had neglected his pension.
He had just €50,000 saved at age 55.
Here’s how we helped:
- Set up an Executive Pension — company-funded and fully tax-deductible
- Built it up to €300,000 in one year through catch-up contributions
- Transferred to a Small Self-Administered Scheme (SSAS) for control
- Avoided Revenue issues by not building the property himself
- Bought a turnkey apartment in Galway, already tenanted and fully managed
The numbers:
- Purchase: €275,000
- Legal + trustee fees: €12,000
- Rental income: ~€1,500/month (all tax-free)
- Cash buffer held: €15,000 (per Revenue rules)
- Gross yield: ~6.5%
“It’s the best of both worlds. Property I understand, with no Revenue headaches.” — John
Step-by-Step Guide to Buying Property in Your Pension
Step 1: Use the right pension type
SSAS, PRSA, or ARF. Defined benefit schemes won’t work — you’ll need to transfer first.
Step 2: Appoint a Pensioneer Trustee
You need one to comply with Revenue rules. They hold the property in trust and handle legal compliance.
Step 3: Build your pension pot
Ideally, you need €200k+ to cover purchase, legal costs, fees, and liquidity.
Step 4: Hold back 5–10% in cash
Revenue requires liquidity to cover fees, taxes, and emergencies.
Step 5: Watch IORP II limits (for occupational pensions)
You can’t exceed 50% in unregulated assets, including property.
Step 6: Find an “arm’s-length” property
No personal use. No family. No friends. No self-dealing. Must be independent.
Step 7: Complete the deal through your trustee
The property is owned by your pension. Rent flows into the fund. Managed independently.
What Can You Buy (And What’s Not Allowed)?
Allowed:
- Residential or commercial property
- Group property investments
- Long-term local authority leases
- Refurbishments (paid by pension, managed independently)
Not Allowed:
- Your own home
- Holiday homes
- Renting to yourself or family
- Buying from a connected person
- Flipping or developing property
- Building the property yourself
Can Your Pension Borrow to Buy Property?
Yes — but only within strict rules.
- Allowed for SSAS or PRSA pensions
- Must be non-recourse loans — lender can only go after the property
- Your fund must afford repayments without relying solely on rent
- Most lenders limit borrowing to 50–60% loan-to-value
- Must be approved and arranged through your trustee
SSAS vs PRSA — Which Is Better?
SSAS (Small Self-Administered Scheme)
- Best for company directors
- Maximum control and contribution flexibility
- Allows borrowing
- Requires Pensioneer Trustee and annual compliance
PRSA (Personal Retirement Savings Account)
- Better for self-employed and individuals
- Simpler to set up
- Exempt from IORP II restrictions
- Borrowing options more limited
- Less control than SSAS in some cases
Bottom line:
- Company director? Consider SSAS.
- Self-employed or value simplicity? PRSA may be better.
Behind the Scenes — Trustees, Roles & Compliance
- Pensioneer Trustee: Keeps the SSAS compliant, registers the scheme, signs off on deals
- Registered Administrator: Manages records and annual filings
- You (the investor): Member Trustee. You make the investment decisions but share legal responsibility
- Liquidity rules: Always hold 5–10% of your pension in cash
- Loan rules: Non-recourse. Must be affordable. Revenue-approved.
What Happens at Retirement?
- You can draw 25% tax-free — straight into your bank account
- The rest goes into an ARF (Approved Retirement Fund)
- You continue to hold the property and earn tax-free rent
- You must withdraw 4–5% annually (depending on age and fund size)
- If you sell the property in retirement — still no CGT
- Upon death, the property can be passed to spouse or children — with varying tax treatments
Is This Strategy Right for You?
Buying property through your pension can be a powerful, tax-efficient way to grow and draw retirement income.
But it’s not for everyone.
Choose this route if you want:
- Direct control
- Tax-free rental income
- A tangible asset in your pension
Consider alternatives if you prefer:
- Simplicity
- Diversification
- Less admin and compliance
I empower people to take full control of their finances, guiding them step by step towards building, growing, and preserving true wealth.
About the Author
Kevin Elliott is a Financial Planner and quantitative finance expert with over 18 years of experience in global financial markets.
He has worked with top-tier institutions such as Bank of New York, Bridgewater Associates, RBS, CIBC, UniCredit, and Bank of America, where he served as Director in New York.
Holding a BSc in Economics and Finance and a Graduate Diploma in Financial Planning from University College Dublin, along with an MBA from Imperial College London, Kevin combines deep technical expertise with a passion for personal finance and wealth building.
Kevin is committed to helping individuals take control of their finances, invest wisely, and build long-term wealth. With a knack for simplifying complex financial concepts, he provides actionable insights on investing, retirement planning, and financial independence.
Whether you’re a beginner looking to start your wealth journey or a seasoned investor fine-tuning your strategy, Kevin offers practical guidance, expert analysis, and proven strategies to help you achieve financial freedom and security.
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