The Irish Government has announced a new personal investment account scheme designed to make investing easier and more accessible to households, with State-backed accounts expected to become available early next year.
The accounts will feature a tax-free threshold and will not require investors to make a minimum contribution. There will also be no minimum holding or lock-in period, allowing savers to access their money when needed.
Investors will be able to transfer their accounts between approved providers without triggering a tax liability.
The Government will announce the level of the tax-free threshold, the flat tax rate on investments above that threshold and the annual contribution limit in Budget 2027.
Eligible investments will include listed shares, listed bonds, financial instruments traded on regulated markets and a range of investment funds designed for retail investors. Highly complex and risky products, including derivatives and crypto assets, will not qualify under the scheme.
The new accounts form part of the Government’s Roadmap for the Taxation of Retail Investment, which aims to simplify the tax system for people investing their savings.
Tánaiste and Finance Minister Simon Harris said Irish households had a strong culture of saving but relatively low levels of direct investment.
He said the new scheme would give people who choose to invest a simpler way to access capital markets without requiring significant financial knowledge.
“Capital markets should not feel remote or like something that is only for people with significant wealth or financial expertise,” Mr Harris said.
He also stressed that investing would not be suitable for everyone and that deposits would remain appropriate for many households.
“Investing involves risk and is best considered over the medium to longer term,” he said, adding that people should make decisions based on their own circumstances.
Under the proposed system, providers will handle tax administration on behalf of investors, reducing the amount of paperwork individuals face when managing investments.
Brian Hayes, chief executive of Banking and Payments Federation Ireland, welcomed the plans, saying a well-designed Savings and Investment Account could help households build greater financial resilience.
He said the scheme could also encourage a stronger investment culture, direct more household savings towards productive investment and support Irish businesses and the wider economy.
BPFI particularly welcomed the planned tax-free element and lower tax rate on returns above the threshold. Hayes said clear and straightforward incentives would be important in building public confidence and encouraging people to use the accounts.
The organisation also highlighted flexibility as an important feature, noting that consumers had identified the ability to withdraw funds as a key consideration in a recent survey.
The Government said the scheme is intended to provide another option for people who want to invest while giving them clearer information, greater flexibility and a simpler approach to tax administration.
