07/10/2026
The new Investment Account - what is it?
Over the past few months, anticipation has been building around Ireland’s new Investment Account which is designed to offer greater potential for long term wealth creation. Now, following the latest Budget 2027 announcements, we have a much clearer view of how the scheme is expected to work, and more importantly, when it will be available.
How much can I invest in the Investment Account each year?
Each year, you’ll have a new annual contribution allowance of €12,000 – a maximum amount you can invest into your Investment Account in that tax year.
Alongside this, there is an overall tax-free fund value limit of €50,000. This means that there is no tax on growth until your fund value reaches this higher threshold, and only the amount above the threshold is taxed, at a flat rate of 1%.
This will be the first time in Ireland that tax-free investment returns have been available to investors, so it’s an opportunity not to be missed
Can I carry forward unused annual allowances?
No. Unused allowance cannot be carried forward. You receive a fresh allowance each year and can only use that year’s limit in that year.
What is the tax-free threshold and what tax rate will apply above it?
The Investment Account offers a very competitive tax position compared with existing saving and investment options. Tax is payable at a flat rate of 1% - but very importantly, this is only on the amount above the tax-free threshold of €50,000.
So, if you had an Investment Account valued at €52,000, you would pay tax on just €2,000 of this, at a rate of 1%, which equates to just €20.
Are there any other important tax changes I should know about?
The 1% life insurance levy and Deemed Disposal will not apply to these new products
When is the Investment Account expected to be available?
The government has confirmed that these plans will be available from 1st of July 2027.
