It is now possible to purchase a property with your pension fund and also with borrowings from a bank.
How does it work?
- You choose the property but there are some conditions.
- All property transactions must be on an arms-length basis so you cannot acquire property from yourself or anyone connected to you and nor can you or anyone connected to you buy, rent or use the property.
- You cannot acquire a property for development
- When your pension fund owns a property it will pay no tax on any rent received.
- If the Pension Fund sells the property it will not be liable to Capital Gains Tax (currently 33%).
- When you decide to retire you don’t have to sell the property as you can transfer it into an Approved Retirement Fund (ARF) so it will continue to earn an income and can be transferred through your estate on death.
- At retirement you can extract 25% of the value of your pension fund as a lump sum (the first €200k of which is tax free) but you’ll need to have sufficient cash or liquid assets in the fund to do so but equally you could sell the Property if necessary.
Why Smart Mortgages?
- Experienced, qualified team
- Honest advice, tailored to your needs
- Choice of mortgage providers
- Faster, smoother application process