Investing
The Investment Account from July 2027: how it will work
Last updated 16 October 2026
From 1 July 2027, invest up to €12,000 a year. Pay 1% a year only on the value above €50,000, with no exit tax, Capital Gains Tax or 8-year rule.
Budget 2027 announced a new Investment Account, to be offered by providers from 1 July 2027. It replaces the usual taxes on investments with one small yearly charge on larger accounts, and the provider deals with Revenue for you. It becomes law when Finance (No. 2) Bill 2026 is enacted; the details below are the ones the Department of Finance has published so far.
The main rules
| Who can open one | Irish residents aged 18 or over with a PPS number. One account each at the start. |
| How much you can pay in | Up to €12,000 a year. No minimum. |
| Tax | 1% a year on the account's value above €50,000, using the average of its daily values |
| What it can hold | Shares, bonds, investment funds including ETFs, and insurance-based investment products |
| Who provides it | Investment firms authorised under MiFID, regulated fund managers and insurers |
| Your paperwork | None in the normal course: the provider works out, reports and pays any tax |
What it replaces
Inside the account there is no capital gains tax, no dividend withholding tax and no exit tax, and the 8-year deemed disposal doesn't apply. Outside it, an ETF still pays exit tax of 35% from 2027 on gains, including every 8 years.
What the tax comes to
| Average value over the year | Tax for the year |
|---|---|
| €40,000 | €0.00 |
| €60,000 | €100.00 |
| €100,000 | €500.00 |
| €250,000 | €2,000.00 |
Paying in the full €12,000 a year, it takes at least 5 years of contributions alone to pass €50,000. So most accounts will pay nothing for years.
Things to weigh
- The tax is on value, not gain. Above the threshold, 1% is due even in a year the account falls. In a year it grows 5%, the same 1% is a fifth of the growth on that part.
- The limit is per person. Money above €12,000 a year has to go elsewhere, where the usual taxes apply.
- Pensions still come first for many. A pension gives income tax relief on the way in; this account doesn't.
- Details may change. Withdrawals, transfers between providers, and what happens on death or leaving Ireland are for the Finance Bill and the providers' terms.
Until then, see how savings and investments are taxed, and compare options with the savings and investment comparison.
Work it out
- Savings account, ETF or shares? →
- ETFs or direct shares: which leaves you more? →
- ETF exit tax and deemed disposal →
Sources
- Department of Finance: Budget 2027 Tax Policy Changes (section 2.2: taxation of investments; chapter 9: Investment Account) (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)
- 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)
General information, not tax advice. HeyPenny is not a tax agent.