Property pension

ntlbell

I'm looking to buy a number of properties outside Ireland over the next 10 years or so which will be basically used for my "retirement fund" what I was wondering is can I say put the money I invest in each property into my pension somehow so I don't pay tax on the money I use to invest e.g. the deposits and any profit form the propertys also go into my "pension" and not get taxed?

Cheers

ircoha

ntlbell wrote: »

I'm looking to buy a number of properties outside Ireland over the next 10 years or so which will be basically used for my "retirement fund" what I was wondering is can I say put the money I invest in each property into my pension somehow so I don't pay tax on the money I use to invest e.g. the deposits and any profit form the propertys also go into my "pension" and not get taxed?

Cheers

You dont say what sort of PF u have but if self-administered the rules are pretty strict on property content.

Assuming u can comply with the rules, which on the face of it I dont think you will, the next question is how do you secure the loans: borrowing in the pension fund is generally a no-no.

The final point is that most Irish banks are not interested in cross border security so you will have a problem there.


The revenue site and the pensions board will both provide you with more details

kaiser sauze

While "ircoha" is basically right about there being restrictions with regards to pensions, I would hardly call them overly restrictive.

Without knowing what type of pension you have, or whether you are only starting one, I am not prepared to give any further advice on the matter.

What I can say at this point is that tax is unavoidable, anyone who tells you otherwise has no idea what they are talking about and is probably discussing an illegal method. The key is minimising your liability in a legal manner; in other words tax efficiency.

ntlbell

I have recently moved to my jobs pension scheme with merchant but I want to change this to self admin.

I'm probably not explaining what I want to do very clearly as I'm not 100% sure how this works.

Basically I'm looking for a way to put any profit made on the properties into the pension so I don't pay any tax on the profit.

To answer irocha's question the mortage would secured like any other I would of assumed it's secured against the property? they will be investment mortgages and it's only the profit that i'm concerned about in the long run as they won't be sold for about 35 years or so the mortgages will be over 10-15 so the 20 years of rental profit and the finall selling of it i'd like to put into the pension.

or maybe i'm making no sense at all

kaiser sauze

ntlbell wrote: »

I have recently moved to my jobs pension scheme with merchant but I want to change this to self admin.

Will your employer's scheme allow you to do this; if not, are they prepared to change the rules of the scheme? You'll need to talk to the trustees of the scheme to find this out.

Self-Administered schemes are great, but the fees can be prohibitive. Have you factored this into account? You need to source a company that can supply you with what is called a 'unit trust'.

ntlbell wrote: »

I'm probably not explaining what I want to do very clearly as I'm not 100% sure how this works.

This is exactly why you should get professional advice on the matter.

ntlbell wrote: »

Basically I'm looking for a way to put any profit made on the properties into the pension so I don't pay any tax on the profit.

As I stated in my last post: not possible. If you are advised it is possible, question the legality and tax compliance of the advice.

You can pay the profits into your fund during the term of the pension and mortgage, but this will not be completely exempt from tax. There are a number of different types of investment mortgage. Three common ones exist, none of them contain an exemption from tax.

Don't forget, there will be local taxes and costs involved while purchasing abroad.

ntlbell wrote: »

To answer irocha's question the mortage would secured like any other I would of assumed it's secured against the property? they will be investment mortgages and it's only the profit that i'm concerned about in the long run as they won't be sold for about 35 years or so the mortgages will be over 10-15 so the 20 years of rental profit and the finall selling of it i'd like to put into the pension.

From the sounds of this, you're looking for a capital and interest pension mortgage. Ask your adviser to get you information on this type of scheme.

ntlbell wrote: »

or maybe i'm making no sense at all

Not quite true; you have a good idea that needs refining.

ntlbell

Thanks for making it a little bit clearer much apreciated!