International Pensions

While all of our clients have growing pension funds a number will near or exceed the maximum fund threshold of €2M in their pension pot at the point of retirement. This level of pension may have significant tax and other penalties that many are unaware of. Some are initially fearful about using the pension legislation of another European Country, however, through our partnerships and Irish based investment houses, we can provide our clients with the reassurance they need to recognise that significant benefits can be achieved for them.

Occupational pension funds in Ireland and the European Union benefit from the principles of free movement of capital and of services. This freedom is supplemented by rigorous prudential standards, ensuring that pension fund members and beneficiaries are properly protected. The manner in which the E.U. achieves this is through Directive 2003/41/EC which regulates the activities of all institutions which avail of these freedoms.

IORPS created a legislative basis for transfers from Occupational Pension Schemes to similar arrangements available elsewhere in the EU.

Advantages of IORPS Pension Schemes

Irish	IORPS
ARF income will incur double taxation for retirement abroad.	No double taxation for retirement abroad.
ARF income will incur double taxation for retirement in Portugal.	Minimal income tax available, for retirement in Portugal.
Maximum tax-free lump sum €200,000.	Tax free lump sum 30% of the total fund value. No Maximum.
Fund cap €2million.	No fund cap.
Death before retirement four times salary. Balance must be paid through annuity	Total fund inherited by Spouse, no annuity required
Minimum 4% income drawdown. Increases to 5% from age 70. Minimum 6% if fund cap exceeded.	Flexible Income drawdowns.
After income taken, spouse only has “step in” rights to income on death of principal and must pay income tax.	Capital can pass to spouse on death, tax free.
Investment in Ireland usually through regulated providers. Some non-regulated products allowed.	Investment through Irish regulated providers.
Early retirement at age 50. Business owners must show full retirement.	Early retirement at age 50 – no requirement to sell company, (company owner directors).