PRSI on Rental Income for contributory pension

Jordan Belfort

Registered User
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28
If retire early I might not have have enough total or average PRSI contributions to get full rate contributory pension. However I think I would still be paying class S PRSI on income (€10000) from a rental property. Will I get 52 class S contributions for this retail income ? Will this be allowed keep my contribution average up in the years between stopping work turning 67 ?
 

NoRegretsCoyote

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2,538
You get 52 contributions once you make at least the flat PRSI charge of €500 every year.

Make sure to have rental profits of at least €5k each year otherwise you're not obliged to pay PRSI at all. Just bear this in mind if you are considering renovations, capital expenditure, etc.
 
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TheBeach

Registered User
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18
Yes the 52 S class will count towards pension.

Bear in mind though if you any other A class employment during the year, even 1 week, your S class contributions will all change to class K and these do not count towards pension.
 

LosLobos

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1
Is there a possible trade-off where someone who leaves the country and has a rental property contributes paying Class S on the rental income (is there a voluntary minimum flat charge for rental income, btw?) and can later on either;

(i) approaching retirement in another EU State, opt to use totality of Irish contributions (Irish employment years & subsequent Irish rental years) to get just the Irish State OAP and the truncated foreign pension .... or ....

(ii) merely use Irish employment years and foreign employment years = full working life pension in that other country?

If there is no choice i.e. no (i) then no voluntary contributions should be made?

(Am assuming in the above, EU cross-border carry-across-entitlement pension rules)
 

RedOnion

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5,776
Is there a possible trade-off where someone who leaves the country and has a rental property contributes paying Class S on the rental income (is there a voluntary minimum flat charge for rental income, btw?) and can later on either;
No. A non resident landlord doesn't pay PRSI on their unearned income. You can make voluntary contributions if they are allowed.

Some of the specifics are mentioned in this thread: https://www.askaboutmoney.com/threads/non-resident-landlord-prsi-charge-on-income-tax-bill.193247/

It might be easier if you set out a specific scenario to tease it out.
 
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