knowledge 6 October 2026 |

Budget 2027: Government Unveils New Irish Investment Account Regime

What it is

The Government has announced the proposed framework for the new Irish Investment Account ("IIA") as part of Budget 2027, with the regime expected to take effect from 1 July 2027 and to be legislated for in the forthcoming Finance Bill. The aim of the initiative is to unlock up to €170 billion currently held in low-yield household deposits and the IIA is designed to encourage greater participation in long-term investing through a range of favourable tax measures. The announcement is likely to be welcomed by investors, particularly given the favourable tax treatment as part of the introduction of a more tax-efficient framework for retail investment.

Who is it available to

As previously announced, the IIA will be available to Irish tax-resident individuals aged 18 and over who hold a PPSN, with one account permitted per person.

What investments form part of the Accounts:

The Tánaiste had already announced that 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.  This broad range of eligible investments is intended to cater to retail investors with differing investment objectives, risk appetites and time horizons. Investors will not be able to invest in crypto or derivatives under the IIA. Investors availing of the accounts will not be able to hold cash on deposit in the accounts, except for where the account holder is purchasing further investments or in circumstances where they have just sold their holdings in the accounts.

What are the tax benefits

As anticipated, a tax-free threshold will apply to the SIA. Investors can contribute of up to €1,000 per month or €12,000 annually with a tax free threshold of €50,000.  The value of the account over the tax-free threshold will be subject to a 1% flat-rate tax . Capital gains tax, dividend withholding tax, investment undertaking tax, life assurance exit tax and the deemed disposal rule will not apply to investments held within the account. However, there may be charges and fees imposed by providers. Providers of the accounts, who are expected to include banks, investment firms and insurers, will be required to report and pay the relevant tax on behalf of the account holder on an annual basis.

In a further positive development for investors, the rate of investment undertaking tax and life assurance exit tax (which includes such taxes on deemed disposals at the end of an eight year holding period) will be reduced from 38% to 35% from 1 January 2027.

Who can provide the Accounts

The Accounts will be available by a variety of service providers, including credit institutions (banks), investment firms (expected to include investment firms authorised under MIFID and Investment Business Firms authorised under the Investment Intermediaries Act 1995) and insurers.