Imperius Wealth

Is a PRSA Pension suitable for a business owner?

Is a PRSA Pension suitable for a business owner?

Is a PRSA Pension suitable for a business owner?

Are you a business owner who would like to move surplus reserves from your business and save tax at the same time?


The recent changes in PRSA legislation (pension retirement savings) has presented Business owners and their spouses with the possibility to extract wealth from their company while saving tax.

Is a PRSA Pension suitable for a business owner?

The new PRSA pension rules give you the following advantages.

  • Employer can fund a PRSA, with the only ceiling the €2 million Standard Fund Threshold
  • The ability to fund €2m PRSA for both the business owner and the spouse (if reserves are available) with the Employer receiving immediate tax relief in year the contributions are made
  • The sole requirement is the PRSA owner is in receipt of a Salary from that business.
  • The PRSA could be utilised by the owner to purchase a property (via pension) with no tax payable on the Rental Income in this pension structure (IORPS II rules do not apply)
  • The PRSA owner can access his/her pension benefits from age 50 onwards (must sever links with Employer), or from age 60-75 onwards (no need to sever employment contract)
  • A PRSA allows the holder to split benefits into multiple PRSA’s, this can be flexible for someone who wants to phase their pension drawdowns.
  • PRSA’s are arguably better for Estate Planning as the PRSA fund value at Death is paid in one lump sum to the owner’s spouse/dependants.
Property Cost
Financed By
BTL Loan -15 Yr.


If you would like to hear more detail on the options available to you, get in touch with us today by filling out the form below.

Example: Funding a BTL Investment – via PRSA

Is a PRSA Pension suitable for a business owner?
  • John (age 48) is the Owner of a Dental Practice. The company has been profitable and has retained earnings of €550,000. John is a salaried employee earning €80k p.a. John currently has no pension funded from this employment. John, heard on a business radio show, that since 01/01/2023 under new PRSA rules that his Employer could fund a pension from the company reserves. John’s Accountant confirms that €250k is affordable as an Employer contribution. John’s Financial Adviser arranges and sets up the Employer PRSA.
  • By using this PRSA option, John transfers €250k tax-free from his business for his retirement. Depending on the business growth, he could fund a further PRSA for him or his spouse.
  • John is interested in purchasing a property with his pension. John sources a 3 Bed, Buy to Let (BTL) property close to a regional hospital. The total cost of the property is €390k.
  • John’s Financial Adviser, implements the PRSA pension structure, trustee arrangements and additional €140k funding from a specialist BTL funder (15 Yr. repayment mortgage/initial 5 Year Fixed @4.85%)
  • Current rental for 3-beds in his area is €2,000 pm, or 6.2% yields.
  • John repays the BTL mortgage monthly, the surplus rental funds after mortgage are retained within the pension structure and no tax is payable on this income.


After 15 years, the loan is fully repaid, the surplus rental funds accumulate in the structure, John’s PRSA pension trustee owns the property (on his behalf) and can benefit from any appreciation over that period.


John or his spouse can replicate this PRSA pension structure more than once – if there are sufficient reserves in the company.

Andrew Cree

Andrew Cree

Senior Financial Planner


Need assistance with your retirement plans? Talk to Andrew Today!

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