knowledge 7 October 2026 |

Budget 2027: A welcome step on deemed disposal, but the job isn’t finished

This follows last year's cut from 41% to 38%, which took effect on 1 January 2026. Equally, this reduction applies on the sale of ETF holdings where a gain has been made but crucially this reduced rate has not aligned to the current rate of CGT.

We welcome the reduction. We also welcome the new Investment Account. The existing investment tax regime, including deemed disposal, will not apply to investments held through that account.

But a lower rate does not fix the real issue. Long-term ETF investors are still taxed every eight years on gains they haven't realised. For Irish investors, deemed disposal makes long-term ETF investing more costly from a tax perspective and more complex, and ultimately stifles investment. This is not a new point. The Government's own Funds Sector Review recommended scrapping deemed disposal altogether and aligning the ETF rate with the CGT rate.

It is also hard to ignore the irony. Ireland is the leading domicile for ETFs in Europe, yet our own tax regime discourages Irish people from investing in the very ETFs we are home to. Most of our European peers, including France, Italy, Finland and Luxembourg, simply tax ETF gains when the investor sells. Meanwhile, Irish households keep 38% of their financial assets in cash and deposits, compared with an EU average of 30%.

Looking ahead, we would like to see:

• A firm timeline for abolishing deemed disposal, not just a commitment
• The exit tax rate aligned with CGT
• Simpler rules for ETF investors, including the ability to offset losses

Today's announcement is a good step. The next one should be a firm date for abolishing deemed disposal and an ETF rate aligned with CGT. Doing this would help put Irish savers on an equal footing with investors across Europe. It would support the Savings and Investments Union agenda and let Irish residents benefit from the ETF industry that Ireland does so much to build.