Wealth Management for Executives & High Earners in Ireland

The Tax Reality for High Earners

Once you’re earning above €70,000, you’re paying 52% on each additional euro. That means for every €1,000 bonus, pay rise, or promotion, you keep less than €480.

Compare that to someone on €40,000, who pays about 28% on their last euro. The system is steeply progressive, and high earners carry a disproportionate share.

The problem this creates is simple: conventional advice doesn’t work. “Just earn more” doesn’t help when half your income disappears immediately. You need to approach things differently.

Your Pension Is Your Best Tax Break

If you’re a higher-rate taxpayer, pension contributions are the single most powerful tool you have. Every €100 you put into your pension costs you only about €56 because you get immediate tax relief at 40%, plus another 4% PRSI relief.

That’s a guaranteed 78% return before your money even starts growing. Nothing else comes close.

How Much Can You Contribute?

It depends on your age. The older you are, the more you can put in:

These percentages apply to earnings up to €115,000. If you earn more, you still only get relief based on the first €115,000.

Most executives we work with aren’t contributing anywhere near their maximum. If that’s you, you’re leaving thousands on the table every year.

The Pension Cap

There is a lifetime limit on how much you can build up in a pension tax-efficiently. It’s called the Standard Fund Threshold, and it’s currently €2 million for 2025.

From 2026, it increases by €200,000 each year until it reaches €2.8 million in 2029. If you exceed the limit, you pay 40% tax on the excess immediately.

For most people, this won’t be a problem. But if you’ve been maxing out contributions for decades or have had exceptional returns, it’s worth checking where you stand.

Company Shares: RSUs and Options

Many executives receive part of their pay in company shares. The tax treatment is complicated, and if you don’t understand it, you can get caught out.

Restricted Stock Units (RSUs)

RSUs are a promise you’ll receive shares after you stay with the company for a certain period. When they vest, the full market value is added to your income for that year.

You pay 52% tax on that value. Your employer usually sells some shares automatically to cover the bill. If you receive RSUs worth €50,000, about €26,000 goes to tax. You end up with shares worth roughly €24,000.

If you hold the shares and sell them later at a higher price, you pay 33% Capital Gains Tax on the additional growth (after a €1,270 annual exemption).

This double hit, income tax at vesting, then CGT on further growth is why many people sell immediately. There’s nothing wrong with that if it means diversifying.

Share Options

Share options give you the right to buy company shares at a fixed price. If the share price rises above that price, you make a gain.

When you exercise the option, the gain is taxed as income at your marginal rate (52%). If you sell later at an even higher price, that additional gain is subject to 33% CGT.

Many executives prefer to exercise and sell simultaneously to avoid the risk of paying tax on a gain that evaporates.

Should You Sell or Hold?

When shares vest, you face a decision: sell or hold?

Most advisers recommend selling at least enough to cover the tax and diversify. Holding large amounts of company stock creates concentration risk – your salary, benefits, and shares all tied to one company.

Ask yourself: if you had cash today, would you invest it all in your employer’s shares? If not, you shouldn’t hold shares just because you received them.

Multiple Income Streams

Your income probably doesn’t come from just one place. Salary, bonuses, share income, investment dividends, all taxed differently.

Salary and bonuses are taxed through PAYE at your marginal rate. Nothing you can do there except maximise pension contributions.

Investment income varies:

• Dividends: taxed at your marginal rate (potentially over 52%)
• Deposit interest: 33% DIRT
• Investment funds: 38% exit tax (reduced from 41% in January 2026)
• Direct shares: 33% CGT

For high earners, investment funds at 38% are actually more tax-efficient than dividends at 52%. But direct shares at 33% CGT are the most efficient of all.

Don’t wait until January to discover you owe €20,000. Track your income throughout the year and set money aside for tax as you go.

Protect Your Income

If you’re earning €120,000 per year, your income over 30 years is worth €3.6 million. At €200,000, it’s €6 million. That’s your biggest asset – bigger than your house, your pension, anything.

Yet many executives have no income protection. The thinking is: “I have savings, I’ll be fine.” But savings run out if you’re off work for two years with a serious illness.

Income Protection

Income protection pays you up to 75% of your earnings if you can’t work due to illness or injury. Premiums are tax-deductible at your marginal rate, if you’re a higher-rate taxpayer, you get 40% relief.

If you earn €150,000 and you’re off work for a year, income protection could pay you around €112,500. Without it, you’re drawing down savings to cover the mortgage, school fees, living expenses.

The younger and healthier you are when you take out a policy, the cheaper it is. Don’t wait until you have a health problem.

Life Insurance

If you have dependants, you need life insurance. A rough guideline is 10 times your annual income. If you earn €150,000, that’s €1.5 million of cover.

Term life insurance is straightforward and relatively inexpensive. Get adequate cover in place and stop overthinking it.

Frequently Asked Questions