Budget 2027
Budget 2027 for savers and investors: exit tax, Capital Gains Tax and the Investment Account
Last updated 16 October 2026
Budget 2027 cuts exit tax on funds and life policies from 38% to 35% and Capital Gains Tax to 31%. A new Investment Account pays 1% on value above €50,000.
Budget 2027 changes how most investments are taxed. These measures, set out in the Tax Policy Changes document, take effect when Finance (No. 2) Bill 2026 is enacted.
Exit tax: 38% to 35%
Exit tax falls from 38% to 35%. It covers Irish funds (Investment Undertaking Tax) and Irish life assurance policies. It also covers equivalent funds in the EU, the European Economic Area and the OECD (Organisation for Economic Co-operation and Development), including many ETFs. Certain foreign life policies are covered too. A new section will cover Irish funds held through clearing systems, including Irish-domiciled ETFs, at the same 35%. The Budget documents don't give a start date.
Capital Gains Tax (CGT): 33% to 31%
For shares and other assets disposed of from 7 October 2026, CGT is 31%.
| €10,000 gain in a fund: exit tax at 38% | €3,800.00 |
| Same gain at 35% | €3,500.00 |
| €10,000 gain on shares sold in November 2026: CGT after the €1,270 exemption | €2,706.30 |
Funds still face the eight-year deemed disposal; shares don't, and losses on shares can be used against gains.
The new Investment Account
- available from providers from 1 July 2027, to Irish residents aged 18 or over with a PPS number; one account each at first
- you can pay in up to €12,000 a year
- tax is 1% of the account's value above €50,000, worked out on the average of its daily values; nothing is due below that
- it can hold shares, bonds, investment funds and insurance-based investment products
- no deemed disposal, and the provider works out and pays the tax for you
| Account with an average daily value of €70,000 | €70,000.00 |
| Tax-free amount | (€50,000.00) |
| Taxed at 1% | €200.00 |
Unchanged
- DIRT (the tax on deposit interest) stays at 33%
- the CGT annual exemption stays at €1,270
Work it out
- ETF exit tax and deemed disposal →
- Savings account, ETF or shares? →
- DIRT on savings interest →
- Capital Gains Tax on shares and crypto →
Sources
- Department of Finance: Budget 2027: Tax Policy Changes (checked 25/10/2026)
- Department of Finance: Budget 2027: Tax Policy Changes Summary (checked 25/10/2026)
- Citizens Information: Budget 2027 (checked 25/10/2026)
- Revenue: What DIRT rate is applicable? (33%) (checked 25/10/2026)
- Revenue: Tax and Duty Manual Part 02-03-01A: Capital Gains Tax rate of charge (S.28) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.