Big news for Irish savers. The government is developing a brand-new ireland investment scheme that could eliminate capital gains tax ireland on returns earned through a state-backed investment account. If you’ve been sitting on savings in a low-interest deposit account — or simply felt the Irish investment landscape was too complicated or too expensive — this development could genuinely change things for you.
At Money Maximising Advisors, we work with clients across Dublin, Galway, and beyond to help them make the most of their money through smart Savings & Investments strategies. Whether you’re planning for retirement, building wealth, or simply looking for better returns than your current bank account offers, this new scheme is worth understanding in detail.
What Is the New Ireland Investment Scheme?
In March 2026, Tánaiste and Minister for Finance Simon Harris announced that a new state-backed ireland investment scheme is being developed and will form part of Budget 2027 proposals. The scheme is specifically designed to remove barriers that have historically made investing in Ireland complicated, expensive, and tax-heavy.
The preferred model being examined is the Swedish system known as Investeringssparkonto (ISK). Under this structure, a standard flat annual tax — typically around 1% of the fund value — is applied to the account, rather than to individual trades or gains. In return for that flat rate, no capital gains tax is charged on profits, and no income tax is applied to returns.
Here is what the proposed scheme could look like in practice:
- A small annual tax rate (currently around 1.065% under the Swedish model) applied to the total value of your investment account
- No capital gains tax due on profits when you sell investments
- No requirement to track individual trades for tax purposes
- Investments up to around €28,000 potentially exempt from even the flat tax
- Designed as a “one-stop shop” for everyday retail investors in Ireland
Plans are expected to be approved in the first half of 2026, with the full scheme launching as part of Budget 2027.
How Does Capital Gains Tax Work in Ireland?
Before we explore how to benefit from this new scheme, it helps to understand capital gains tax ireland in its current form.
Capital Gains Tax (CGT) is a tax on the profit (gain) you make when you sell or dispose of an asset that has increased in value. In Ireland, CGT applies to a range of assets including shares, investment funds, property (other than your primary home), and cryptocurrency.
Key facts about CGT in Ireland:
- CGT rate in Ireland in 2026: The standard CGT rate is 33% on gains above your annual exemption
- Annual CGT exemption: Each individual has an annual tax-free allowance of €1,270 on gains
- Exit tax on funds: Investment funds in Ireland are subject to exit tax at 41%, applied every 8 years or on encashment — a major barrier for many investors
- Reporting requirements: Gains must be declared on your tax return, even if below the threshold
These rates are among the highest in Europe, and the lack of a straightforward investment wrapper has left Irish people reluctant to put their money to work. Despite being among the best savers in Europe, Irish households hold only around 2.2% of their assets in investments. Meanwhile, approximately €170 billion is sitting in low-interest deposit accounts across banks and credit unions.
What the New Scheme Means for Irish Savers
If approved and implemented, this new ireland investment scheme could be genuinely transformative for middle-income earners and everyday savers across Ireland. Here is why it matters:
1. Simpler investing for everyone
Currently, many Irish people avoid investing because of the complexity of tracking individual trades and calculating gains. Under the new model, you would simply pay one flat annual rate on your account balance — no spreadsheets, no complicated tax calculations. This makes tax saving investments ireland far more accessible.
2. No CGT on profits
The most significant benefit is the removal of capital gains tax on investment returns. Under the current system, a 33% CGT rate on investment gains is a serious deterrent. Under the new scheme, those gains would not be taxed separately at all — only the flat annual account levy applies. This could dramatically improve the long-term returns available to Irish investors.
3. Lower barrier to entry
With the first tranche of savings (approximately €28,000 equivalent) potentially free from even the flat tax, the new scheme is designed to encourage first-time investors. If you have been asking yourself whether to start a regular saver investment plan or explore lump sum options, this scheme removes much of the tax sting that previously made it feel risky or complicated.
If you want to find out whether the new scheme is the right fit for your financial situation, Enquire Now and one of our qualified advisors will be in touch.
How to Reduce Capital Gains Tax Ireland — Legally, Right Now
While the new scheme is still being finalised and will form part of Budget 2027, there are already several legitimate ways to reduce capital gains tax ireland within the current system. Here are your main options:
- Use your annual CGT exemption: Each individual can make up to €1,270 in gains annually without paying CGT. Couples can effectively double this by holding assets jointly.
- Pension contributions: Investing through a pension is one of the most tax-efficient routes available in Ireland. Contributions attract full income tax relief, and growth within the pension is not subject to CGT.
- Capital losses: If you have made a loss on one investment, you can offset it against gains from another in the same tax year — reducing your overall CGT bill.
- Timing of disposals: By spreading asset sales across different tax years, you can make full use of each year’s annual exemption.
- Tax-efficient investment wrappers: Certain structured products and investment bonds can offer more favourable tax treatment than direct share ownership.
Understanding how to structure your investments for maximum tax efficiency is exactly where a qualified financial advisor can make a real difference.
Book Now to schedule a session with one of our Certified Financial Planners and explore the best tax saving investments ireland available to you today.
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Irish Savings Investment Options for 2026 — What Is Available to You Now?
Even before the new CGT-free scheme formally launches, there are a number of strong irish savings investment options worth considering. At Money Maximising Advisors, we help clients across Dublin and Galway explore a range of tax-efficient opportunities:
- Regular Saver Investment Plans: Invest a set amount each month into a diversified fund — ideal for building wealth steadily over time.
- Lump Sum Investments: If you have a larger amount sitting in a deposit account earning minimal interest, a lump sum investment can put your money to work more effectively.
- Capital Protected Investments: These products offer market-linked growth potential while protecting your original capital — a popular choice for cautious investors.
- Pension Investments: One of the most tax-efficient vehicles in Ireland, with income tax relief on contributions and CGT-free growth inside the fund.
- Corporate Investments: If you are a business owner with surplus cash in your company, corporate investment plans offer a structured route to grow that money tax-efficiently.
- College Education Savings: Start saving for your children’s third-level costs early with dedicated education savings plans designed for Irish families.
Whatever your goals, our team can help you navigate the full range of Savings & Investments options available in Ireland today.
What Investments Are Tax-Free in Ireland?
This is one of the most commonly asked questions from Irish savers, and it is a fair one given the complexity of the current system. Strictly speaking, very few investments are entirely tax-free under current rules. However, some offer highly favourable treatment:
- Pensions: Growth within a pension fund is not subject to income tax, CGT, or DIRT. This makes them one of the most powerful tax-efficient investment vehicles available.
- State Savings (NTMA): Returns from certain State Savings products offered through An Post are exempt from DIRT and income tax — though they are subject to their own terms and returns vary.
- Prize Bonds: Winnings from Prize Bonds are not subject to income tax.
- The New CGT Investment Scheme (Proposed): If implemented, the new ireland investment scheme would effectively make investment gains tax-free within the account, subject only to the flat annual levy.
Frequently Asked Questions (FAQs)
What is the new investment scheme in Ireland?
The new ireland investment scheme is a state-backed savings and investment account being developed by the Department of Finance under Tánaiste Simon Harris. Modelled on the Swedish ISK system, it is designed to remove capital gains tax on investment returns and simplify investing for everyday Irish savers. It is expected to form part of Budget 2027.
How does capital gains tax work in Ireland?
Capital gains tax ireland is charged at 33% on profits made from selling assets such as shares, investment funds, or property (excluding your main home). Each individual has an annual CGT-free allowance of €1,270. Investment funds are currently subject to exit tax at 41%, applied every 8 years or on encashment.
Can you reduce capital gains tax in Ireland legally?
Yes — there are several ways to reduce capital gains tax ireland legally. These include using your annual €1,270 CGT exemption, investing through a pension fund (which grows CGT-free), offsetting losses against gains, and timing asset disposals strategically across tax years. Our qualified advisors at Money Maximising Advisors can help you identify the best approach for your situation.
What investments are tax-free in Ireland?
Currently, pensions offer the most comprehensive tax-free treatment in Ireland — contributions get income tax relief and growth is CGT-free. Certain NTMA State Savings products and Prize Bonds also offer DIRT or income tax exemptions. The new proposed investment scheme would add a near-CGT-free account to the list of irish savings investment options available.
What is the CGT rate in Ireland in 2026?
The standard CGT rate in Ireland in 2026 remains 33% on gains above the annual exemption of €1,270. Investment funds are subject to exit tax at 41%. These rates are among the highest in Europe, which is part of the reason the government is developing the new low-tax ireland investment scheme to encourage more people to invest.
When will the new savings and investment scheme launch in Ireland?
The scheme is expected to be approved in the first half of 2026, with full implementation targeted as part of Budget 2027. The Department of Finance is currently examining the Swedish ISK model as the preferred framework. We recommend keeping a close eye on developments — and speaking with a qualified financial advisor to be ready to act when the scheme goes live.
Conclusion
Ireland’s relationship with investing is at a turning point. For too long, complicated tax rules and high rates have kept everyday savers on the sidelines. The new ireland investment scheme — modelled on the proven Swedish ISK system — has the potential to change that entirely, making Savings & Investments simpler, cheaper, and more rewarding for people right across the country.
At Money Maximising Advisors, our team of Certified Financial Planners (CFP) and Qualified Financial Advisors (QFA) is already helping clients in Dublin, Galway, and beyond prepare for this new landscape. Whether you want to reduce capital gains tax ireland, explore the best tax saving investments ireland, or simply find smarter irish savings investment options, we are here to guide you every step of the way.
Do not wait for Budget 2027 to start planning. Contact Us today to speak with one of our advisors, or Book an Appointment at a time that suits you. Your money deserves to work harder — and we can help make that happen.
Disclaimer
This article provides general information about the proposed new Ireland investment scheme and capital gains tax in Ireland. It should not be considered personalised financial or tax advice. Irish tax laws are subject to change, and details of the new savings scheme have not yet been finalised by the Department of Finance. Individual financial circumstances vary considerably. Always consult with a qualified financial advisor or tax professional — such as the team at Money Maximising Advisors — before making any significant financial or investment decisions.
