Buying property through your pension fund is one of the most tax efficient investment strategies available in Ireland, yet it remains largely unknown to most pension holders. With the right structure in place, your pension can purchase commercial and residental property, generate rental income, and grow in value, all within a tax sheltered environment.

A pension fund that purchases property benefits from significant tax advantages that are not available to individual property investors. Rental income received by the pension fund is not subject to income tax, and any increase in the property's value is sheltered from Capital Gains Tax. Contributions made to fund the purchase also attract full pension tax relief, making this a highly efficient way to build wealth for retirement.

This strategy works best where there is a meaningful pension fund already accumulated. It is commonly used by business owners, company directors, and PAYE employees with long standing pensions who want to diversify beyond equities and funds. If you are approaching retirement and want your pension to work harder, or if you are a property investor looking for a more tax efficient structure, this route is worth exploring.

A pension fund can borrow to assist with a purchase, typically up to 50% of the fund value. Costs associated with restructuring the pension, legal fees, and lender fees will apply. There are also strict Revenue rules around connected party transactions, personal use of the property, and borrowing limits that must be observed. Getting the structure wrong can have serious tax consequences, which is why professional advice at every stage is essential.

We begin by reviewing your existing pension arrangements to establish whether they can support a property purchase or need to be restructured into a self administered vehicle. From there, we identify your available budget, source suitable lending from specialist lenders familiar with pension backed property finance, and manage the mortgage application from start to finish, coordinating with your pension administrator, solicitor, and the lender to ensure the transaction is completed correctly.