Company Director Pensions
Turn company profits into a tax-free pension
If you own or run a limited company, your business can build your retirement fund for you. Company pension contributions are a deductible expense, aren’t taxed as income in your hands, and let you take money out of the business far more efficiently than salary or dividends.
Last reviewed by Debbie Cheevers, QFA, RPA · 30 June 2026
Who this is for
Owner-directors
You run your own limited company and want to take profits out tax-efficiently rather than paying more income tax.
Contractors & professionals
You trade through a company and want your company — not your take-home pay — to fund your pension.
Established SMEs
Your business is profitable and you’d like to reward directors and key people while cutting the corporation-tax bill.
Why a company pension is so powerful
A pension funded by your company is one of the most tax-efficient ways to extract profit in Ireland. Here’s why:
Corporation-tax relief
Company contributions are a deductible business expense, so they reduce your company’s taxable profits.
No income tax for you
Employer contributions aren’t treated as a benefit-in-kind — no income tax, USC or PRSI on the way in.
Bigger funding room
Company arrangements can allow far larger contributions than a personal pension based on salary alone.
Profits out, tax-efficiently
Move money from the company into your own name without the income tax and USC you’d pay on salary or dividends.
What €25,000 of profit is really worth
Take profit out as salary and most of it disappears in tax. Route it through a company pension and it all goes to work for your retirement.
Taken as salary
After roughly 52% income tax, USC and PRSI at the higher rate, about half is gone before it reaches you.
Paid into your pension
The full amount is invested for your retirement. You pay tax when you draw it down — but with a tax-free lump sum and often at a lower rate.
Illustrative only, assuming a higher-rate taxpayer (about a 52% marginal rate, 2026). Not tax advice — we’ll confirm the figures for your situation.
Your main options
Executive Pension Through Master Trust
An occupational scheme set up by your company for you as a director. Long-established, with generous funding based on salary and service.
Company-funded PRSA
Your company pays into a PRSA in your name. Flexible and portable, with employer contributions relievable up to 100% of your salary.
Personal top-ups & AVCs
You can add your own contributions on top and claim personal income-tax relief within the age-related limits.
Executive pension vs company PRSA
| Executive pension | Company PRSA | |
|---|---|---|
| Set up by | Your company, as an occupational scheme | Your company, in your own name |
| How much can go in | Based on salary and service — often the highest limits | Up to 100% of your salary each year |
| Portability | Linked to the scheme | Fully portable if you move on |
| Best for | Maximising contributions and longer service | Flexibility and simplicity |
Can you set up a company director pension?
A company director pension — an executive pension or company PRSA — is designed for people who run a limited company. Here’s who qualifies and what you get.
Who qualifies
- You’re a proprietary director owning 5% or more of the shares, or a director on a contract of employment drawing a salary through payroll.
- Your company is incorporated and trading in Ireland.
- Contributions come from company trading income, proportionate to your salary and service (Revenue rules).
What you get
- Greater control over contributions, investment choices and the timing of benefits.
- A wide choice of funds you can change as your goals move.
- Often the option to access benefits from age 50, subject to scheme rules.
The key numbers for 2026
| What | 2026 position |
|---|---|
| Company contribution to a PRSA | Relievable up to 100% of your salary for the year; the company gets the deduction |
| How the company benefits | Contributions offset trading profits, cutting the 12.5% corporation-tax bill |
| Standard Fund Threshold (lifetime limit) | €2.2 million, rising by €200,000 a year to €2.8 million by 2029 |
| Tax-free retirement lump sum | Up to €200,000 tax-free; the next €300,000 taxed at 20% |
| When you can access it | Often from age 50 with an executive pension, subject to scheme rules |
Figures apply for 2026 and can change with each Budget. This is general information, not tax advice — we’ll confirm the exact position for your company before you commit.
Common mistakes we help you avoid
- Defaulting to the easiest option instead of the best structure for your company.
- Under-contributing in high-profit years — then over-stretching cashflow in lean ones.
- Ignoring old pensions and losing track of their fees, risk and performance.
- Not reviewing your investment strategy as your goals and timeline change.
- Treating pensions in isolation, rather than alongside your personal investing.
- Delaying decisions until “later”, then scrambling to catch up.
Our four-step advice process
- 1
Free consultation
We get to know your company, your income and how much you’d like to build up.
- 2
Assess the options
We work out how much the company can contribute and whether an executive pension or PRSA suits you best.
- 3
Recommend & structure
We compare Ireland’s leading providers and structure the contributions with your accountant.
- 4
Set up & review
We put it in place and review it each year as your profits and plans change.
Frequently asked questions
Can my company pay into my pension?
Yes. A limited company can pay into an executive pension or a PRSA for a director. The contributions are a deductible business expense, so they reduce the company’s corporation-tax bill.
Are company contributions taxed as income for me?
No. Employer contributions to your pension are not treated as a benefit-in-kind, so there’s no income tax, USC or PRSI for you on the way in.
How much can the company contribute?
For a PRSA, employer contributions are relievable up to 100% of your salary for that year. Executive pensions use a separate funding calculation based on salary, service and existing benefits — often allowing even more. We’ll work out your figure.
Executive pension or company PRSA — which is better?
It depends on your salary, how much you want to fund and how long you have to retirement. Both are strong options; we’ll recommend the one that fits your company and goals.
Is there a limit on the total fund?
Yes — the Standard Fund Threshold is €2.2 million in 2026, rising to €2.8 million by 2029. Funds above it face a 40% charge, so we plan around it.
We work with Ireland’s leading life & pension companies
Ian was so helpful with the information I needed to put me on the right track — sent everything by email afterwards so it was easy to understand. Highly recommend.
Related for business owners
Build your wealth through your business
Talk to a Greenway adviser about funding a pension from your company. The first consultation is free and there’s no obligation.