EIIS relief against ARF, rental and pension income

By BVP Investments Ltd · Last reviewed 3 November 2026

Yes. EII relief is deducted from your total income, so it can reduce the income tax on ARF drawdowns, occupational or private pension income, rental income and dividends, as well as PAYE earnings. That makes EIIS relevant to retirees and landlords who have little earned income and cannot get pension contribution relief.

Income EIIS relief can be used against

PAYE employment earnings
Self-employed and partnership income
Personal rental income
Investment income such as dividends
Pension income and ARF drawdowns

EII relief reduces income tax only. It does not reduce USC or PRSI.

Example: ARF drawdowns

Illustration only. A retired investor draws €80,000 a year from an ARF, a large part of it taxed at 40%. They invest €20,000 in the BVP 2026 EII Fund in December 2026. At the fund’s 35% blended relief target, that would give an estimated €7,000 of income tax relief for 2026, claimed once the Manager’s Certificate is issued. Actual relief depends on how each investee company is categorised and on having enough income taxed at the higher rate.

Things to consider

Money is tied up for at least four years, with an expected fund term of 4 to 7 years and no early exit. Retirees should be sure they will not need the capital.
Capital is at risk. Investments are in unquoted, early-stage and growing Irish companies.
If your income is not high enough to use all the relief in one year, unused relief can be carried forward.
Claim on Form 11 or Form 12. See how to claim EIIS relief.

Frequently asked questions

Can I claim EIIS relief against ARF drawdowns?

Yes. ARF drawdowns are taxable income, and EII relief is deducted from total income, so it can reduce the income tax on them.

Can landlords use EIIS relief against rental income?

Yes. Personal rental income forms part of total income, so EII relief can be set against the income tax on it.

Does EIIS relief reduce USC or PRSI?

No. EII relief reduces income tax only.

Is EIIS suitable for retirees?

Only for those who can afford to tie up money for at least four years and accept the risk of losing it. Speak to a regulated adviser first.

Related guides

Capital at risk. Tax relief depends on individual circumstances and Revenue rules. Minimum 4-year holding period. EII investments are in unquoted, early-stage and growing companies and are illiquid. Past performance is no guarantee of future returns. This page is general information, not tax or investment advice.