- Roadmap sets out a pathway to simplify the taxation of retail investment, including consideration of the deemed disposal rule
- New Investment Account to provide a simple, accessible and tax-efficient option for people who choose to invest
- Account to be legislated for as part of Budget and Finance Bill and made available in 2027
Tánaiste and Minister for Finance, Simon Harris, has published Taxation of Retail Investment: A New Path Forward for Ireland - setting out a pathway to simplify and adapt Ireland’s tax framework for retail investment.
The Roadmap identifies options for further reform of the taxation of retail investment.
It also sets out the key parameters of the Government’s new Investment Account, which will provide individuals who choose to invest with a simpler and more accessible way to do so.
The Investment Account is intended to help broaden participation in capital markets while giving individuals greater choice in how they manage their savings and investments.
Investment Account
- The new Investment Account will be available to Irish tax-resident individuals aged 18 and over who hold a PPSN, with one account permitted per person.
- The account will have a tax-free threshold, with a low flat rate of tax applying annually to the value of the account above that threshold. Where the value of the account is below this threshold no tax will be due.
- There will be no minimum contribution requirement and an annual maximum contribution limit will apply.
- The specific tax-free threshold, flat tax rate and annual contribution limit will be announced as part of Budget 2027.
- Eligible investments will include listed shares, listed bonds, financial instruments traded on a regulated market and a range of investment funds suitable for retail investors, including ETFs.
- The existing investment tax regime, including the deemed disposal rule, will not apply to investments held within the Investment Account. Instead, qualifying providers will calculate, report and pay any tax due to Revenue on behalf of the investor, significantly simplifying the administrative burden for account holders.
- There will be no minimum holding or lock-in period, and portability of Investment Accounts between providers will be facilitated, where possible, on a tax-neutral basis.
- Highly complex and risky products, including derivatives and crypto assets, will not be eligible.
The Government will provide the legislative framework for the Investment Account in the Finance Bill, with accounts to become available in 2027.
Announcing the Roadmap, the Tánaiste and Minister for Finance, Simon Harris TD, said:
“Irish people are good at saving. Every week and every month, people work hard to put something aside to build financial security for themselves and their families.
“But while we are good at saving, we have comparatively low levels of direct retail investment and as such people are not getting the benefits of greater returns.
“For people who decide that investing is right for them, I want to make sure they have a simple and accessible way to do so.
“Capital markets should not feel remote or like something that is only for people with significant wealth or financial expertise. Equally, nobody should feel that investing is something they have to do. We know that enhancing financial literacy and greater transparency and simplicity has a role to place in better informing people.
“The Investment Account is about giving people another practical option.
“It will bring different types of investments together in one account, take the tax administration away from the individual and give people flexibility to access their money when they need it.”
Ireland has a strong culture of saving but comparatively low levels of direct retail participation in capital markets.
Irish households hold just 2.3 per cent of their financial assets in direct investments such as listed shares and debt securities, compared with an EU average of approximately 7.5 per cent.
A significant proportion of Irish household financial assets is instead held in cash and deposits, at 38 per cent compared with an EU average of 30 per cent.
The Investment Account is intended to provide a simpler framework for people who choose to invest some of their savings in capital markets.
The Tánaiste added:
“Deposit accounts are right for many people and for many needs, and people should always make decisions based on their own circumstances.
“Investing involves risk and is best considered over the medium to longer term. it will not be right for everybody. What I want is for people to have choice, clear information and a system they can understand.
“For those who do decide to invest, the tax system should not be unnecessarily complicated or act as a barrier in itself.
“That is what this new account is about. It is another option for people, with a simpler tax treatment the administration taken care of on their behalf.”
Wider reform of retail investment taxation
The Roadmap also sets out the next phase of work on the wider taxation of retail investment.
Budget 2026 reduced the tax rate applying to Irish and equivalent offshore funds, and Irish and certain foreign life assurance products from 41 per cent to 38 per cent.
Building on that change, the Roadmap identifies three key areas for consideration in reforming the existing taxation regime from Budget 2028 and beyond:
- reducing the rate of taxation;
- reviewing the deemed disposal rule; and
- introducing administrative simplifications.
These options will be subject to further analysis, including consideration of their Exchequer impact and the need to retain appropriate anti-avoidance protections.
The Tánaiste concluded:
“The Investment Account is an important first step, but it does not end the work on retail investment taxation.
“The current system is complex and that complexity can itself act as a barrier to people who choose to invest. We will now continue the work on the wider regime, including the rate of taxation, deemed disposal and the administrative burden facing investors.
“My ambition is to build a system that is simpler and easier to understand, where people know what their options are and can make informed decisions based on their own circumstances.
“This is ultimately about choice. Government should not tell people whether to save or invest. Our job is to make sure that, whatever people decide is right for them, unnecessary complexity in the tax system does not stand in their way.”
Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Robert Troy TD, said:
“Co-operation between industry and the Department will be key as we finalise the legislation for the new Investment Account. I would encourage all sectors across financial services, including the credit union movement, to examine the Roadmap, engage with the Department and bring forward their views on the role they can play and the opportunities they can offer to aspiring investors.
“Financial literacy will also be critical to the success of these accounts. If we want more people to consider investing, we need to ensure they are informed and understand the risks and opportunities involved. Government has an important role in ensuring that happens, working alongside industry and organisations with strong relationships with savers in communities across the country.
“Ultimately, this is about giving ordinary savers a simpler and more accessible way to put some of their savings to work, while ensuring they have
