By Olivia Fletcher | Updated on Oct 06, 2026 at 02:51 PM
Ireland’s new retail savings and investment accounts, aimed at encouraging more people to invest, will have a €50,000 ($56,318) tax-free threshold, Finance Minister Simon Harris announced in the budget Tuesday.
The Irish Investment Account will have a flat tax of 1% on the value of the account above the threshold. There will be a maximum contribution limit of €12,000 per year, with no minimum contribution.
It’s part of a plan to help increase capital-market participation in Ireland and have more people reap the benefits of stock-market gains. Irish households hold more of their deposits in lower interest account types than the euro-area average.
Ireland’s initiative is in line with a drive across the European Union to encouraging investing, bolster its capital markets to better finance future needs in areas like defense and pensions, as well as compete better with the US and China. However, plans for a wider capital markets union have been mired in years of sparring between member states over how it would work.
“The annual contribution limit of €12,000 is lower than other retail investment accounts such as the UK ISA,” Financial Services Ireland Director, Patricia Callan said. “For the Irish Investment Accounts to be an effective means of building long-term financial resilience or saving for a home, we believe that higher contribution limits are warranted.”
The account will open on 1 July 2027 and will be legislated for in the Finance Bill, Harris added. Those choosing to invest can do so in shares, bonds, ETFs and other funds.
The deemed disposal rule, the 38% rate of tax currently charged on investment fund products, won’t be applied to the state-backed accounts, Harris added. There will also be no capital gains tax.