A new legal notice, published on 3 March 2023, updates the thresholds indicated in the Pensions (Tax Exemption) Rules, originally introduced in 2022.

The updated amounts shall be applicable on pension income derived on, or after 1 January 2023, by an individual, who is at least sixty-one (61) years old in the year in which the pension income is received. The updated amounts are as follows:

Applicability of the exemption Amount exempt

Pension income derived in the year immediately preceding the year of assessment 2023

Twenty per cent (20%), but not exceeding two thousand, eight hundred and sixty-four euro (€2,864)

Pension income derived in the year immediately preceding the year of assessment 2024

Forty per cent (40%), but not exceeding five thousand, nine hundred and eighty-seven euro (€5,987)

Pension income derived in the year immediately preceding the year of assessment 2025

Sixty per cent (60%), but not exceeding eight thousand, nine hundred and eighty-one euro (€8,981)

Pension income derived in the year immediately preceding the year of assessment 2026

Eighty per cent (80%), but not exceeding eleven thousand, nine hundred and seventy-four euro (€11,974)

Pension income derived in the year immediately preceding the year of assessment 2027 and in subsequent years

One hundred per cent (100%), but not exceeding fourteen thousand, nine hundred and sixty-eight euro (€14,968).


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.