Investing
How savings and investments are taxed in Ireland
Last updated 16 October 2026
Deposit interest pays 33% DIRT (tax on interest), ETFs 38% exit tax (35% from 2027), shares Capital Gains Tax and dividends your top rate.
The return on your money is taxed in one of four ways, depending on what you hold. The rates differ, and so does who works the tax out and pays it to Revenue.
Four taxes, four sets of rules
| What you hold | Tax | Rate | Who pays it over |
|---|---|---|---|
| Bank, credit union or An Post deposit | DIRT (Deposit Interest Retention Tax) | 33% | The bank deducts it |
| ETFs and other EU or Irish funds | Exit tax | 38% in 2026, 35% from 2027 | You, on your tax return, for ETFs bought on a stock exchange |
| Shares | Capital Gains Tax (CGT) | 31% after the first €1,270 of gains each year | You, by 15 December or 31 January |
| Dividends | Income tax, USC and PRSI | Your top rate | You, on your return; Irish companies first deduct 25% dividend withholding tax |
Funds bought straight from an Irish fund manager or through a life policy usually deduct exit tax for you. ETFs traded on a stock exchange don't: Revenue treats them as if they were offshore funds, so you declare the gain on Form 11 yourself.
The same €5,000 return, taxed five ways
| Where the €5,000 came from | Tax | Tax due | You keep |
|---|---|---|---|
| Deposit interest | DIRT at 33% | €1,650.00 | €3,350.00 |
| Gain on an ETF, sold November 2026 | Exit tax at 38% | €1,900.00 | €3,100.00 |
| Gain on an ETF, sold March 2027 | Exit tax at 35% | €1,750.00 | €3,250.00 |
| Gain on shares, sold November 2026 | CGT at 31% after €1,270 | €1,156.30 | €3,843.70 |
| Dividends, higher-rate taxpayer | 52.2375% in all | €2,611.88 | €2,388.12 |
The dividend rate adds up 40% income tax + 8% USC + 4.2375% PRSI, the same way Revenue's own dividend example does. The PRSI figure is the average for 2026, as the rate rose in October.
Rules that catch people out
- The 8-year rule. Fund units are treated as sold and bought back on each 8th anniversary. So exit tax is due on the growth even if you sell nothing. See deemed disposal.
- No relief for fund losses. A loss on an ETF can't be set against a gain on another fund or on shares, and there is no yearly exemption. Losses on shares can be used against share gains.
- Deposit interest on a return. DIRT is the final tax, but if you file a return the interest before tax goes on it. There is no USC on it; PRSI may apply.
- Foreign accounts. Interest from an EU bank is taxed at the DIRT rate on your return. From outside the EU, including the UK, it is taxed at 40% if you pay the higher rate. See foreign deposit interest.
What changes in 2027
Budget 2027 cuts exit tax to 35% from 1 January 2027, once Finance (No. 2) Bill 2026 is enacted. A new Investment Account opens on 1 July 2027, taxed at 1% a year on the value above €50,000, with the provider handling the tax.
To compare a savings account, an ETF and shares over your own time frame, use the savings and investment comparison. For a sale or an 8-year charge you have now, use the ETF tax calculator.
Work it out
- Savings account, ETF or shares? →
- ETF exit tax and deemed disposal →
- DIRT on savings interest →
- ETFs or direct shares: which leaves you more? →
Sources
- Revenue: Deposit interest: DIRT is a final liability, no USC on deposit interest (checked 16/10/2026)
- Revenue: What DIRT rate is applicable? (33% on deposit interest) (checked 25/10/2026)
- Revenue: Tax and Duty Manual Part 27-04-01: offshore funds in the EU, EEA and OECD (38% rate, 8-year deemed disposal, no loss relief, no USC or PRSI) (checked 25/10/2026)
- Revenue: Tax and Duty Manual Part 27-01a-02: investment undertakings (para 4.2.3: Irish ETFs in a clearing system are self-assessed as offshore fund payments) (checked 16/10/2026)
- Revenue: Dividend income (25% DWT, taxed at your marginal rate with USC and PRSI) (checked 25/10/2026)
- Revenue: How to calculate CGT (checked 25/10/2026)
- Revenue: eBrief No. 142/26: CGT standard rate reduced to 31% from 7 October 2026 (checked 25/10/2026)
- Department of Finance: Statement by the Minister for Finance on Budget 2027: fund and life assurance exit tax 38% to 35% from 1 January 2027 (checked 25/10/2026)
- Department of Finance: Budget 2027 Tax Policy Changes (section 2.2: taxation of investments; chapter 9: Investment Account) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.