Structuring a Buy to Let Investment

The most important element in becoming a Buy to Let Investor is getting the investment structure right from the outset, this will be dependent on what your long term investment strategy is, and the tax implications for you throughout the period of investment. The balance of capital to be invested between savings and lending is also important, as is ensuring that the income from the asset is sufficient to pay the outstanding debt and costs of ownership.

There are three main mechanisms of structuring your investment Buy to Let, listed below with relevant advantages and disadvantages:

Structure 1 – Investing as an individual


Simple Structure

Flexibility on entry and exit.


Inefficient for tax purposes
CGT on gains and Income tax/PRSI and USC on rental inome

Structure 2 – Company


More tax efficient – Company tax rates on income and gains

Greater lending available.


More complicated structure therefore additional costs(Legal, stamp duty etc)

Structure 3 – Through a pension


Most tax efficient – No CGT/Income Tax etc

Tax relief on contributions in.


More complicated structure – Assets held in trust and revenue rules, all property transaction must be arms length.

Additional costs (legal, etc pension trustees etc)

Lending for each structure:

Structure 1 – Individual:

Max LTV: 80%.
Rates: 3.63% APRC 60% LTV to 5.19% APRC for 80% LTV.
Max Term: 5 – 35 years with a 10 year interest only option available. Typically max term to 25 years.

Structure 2 – Company

Max LTV – 65% LTV
Rates: 5.45% – 5.75% LTV dependent and Capital and Interest.
Lending: Up to €4mn available. (Min €40k)
Terms: Up to 35 years.

Structure 3 – Pension

Max LTV: 50%
Max Term: 15 Years (Interest only option available)
Max Lending: €500k (Min €40k)