Ireland cuts capital gains tax to 31% and launches an Irish Investment Account

Country reference

• Country: Ireland (planned expansion country)
• Authorities: Revenue Commissioners; Department of Finance
• Topic: Capital gains tax, fund taxation and the Irish Investment Account
• Key date: CGT 31% from 7 October 2026; Investment Account from 1 July 2027
• Law: Finance Bill 2026

Capital gains tax

• Standard rate cut from 33% to 31% for disposals on or after 7 October 2026.
• The 33% rate on development land stays.

Funds and life policies

The tax on payments to Irish individual investors from Irish funds, equivalent offshore funds and life assurance policies falls from 38% to 35%. The effective date will be set in the Finance Bill.

Irish Investment Account

• Available from 1 July 2027.
• Contributions up to EUR 12,000 a year, with no minimum and no minimum holding period.
• Tax-free up to a EUR 50,000 balance; above that, a 1% annual tax on the value.
• No capital gains tax or dividend withholding tax inside the account.
• Providers will deduct the tax and may charge management fees.

Who benefits

• Individuals selling shares, property (other than development land) or businesses.
• Irish resident investors in funds and unit-linked life policies.
• Asset managers and platforms that will offer the new account.

What to do now

• Check the date of planned disposals: gains from 7 October 2026 use 31%.
• Fund and life companies: plan system changes for the 35% rate.
• Providers: prepare product and reporting for the July 2027 launch.

Our take

Ireland has taxed savings heavily for years; this is a clear shift. For globally mobile professionals moving to Ireland, the lower CGT rate improves the picture, though Ireland remains a high-tax country for investment income.