On 31 August 2026, Tánaiste and Minister for Finance, Simon Harris, has announced a new Personal Investment Account as part of its Roadmap for the Taxation of Retail Investment, setting out the proposed framework for a new Investment Account aimed at making investing simpler and encouraging greater participation by Irish households in capital markets.
The proposals represent a potentially significant development in the Irish investment landscape, particularly given the complexity of the existing tax treatment of different investment products.
However, a number of important parameters have yet to be confirmed, including the tax-free threshold, the applicable flat rate of tax and the annual contribution limit.
The Investment Account is intended to provide individuals with a simpler way to invest across a range of investment products, with a common tax treatment and simplified administration.
An Irish tax-resident individual aged 18 or over, who hold a PPSN, will be eligible to open one account.
There will be no minimum contribution or minimum holding period, although an annual contribution limit will apply. The account is expected to be introduced from 2027, subject to the necessary legislation.
The proposals provide for a broad range of qualifying investments, including:
Certain complex and higher-risk products, including derivatives and crypto assets, will be excluded.
One of the key features of the proposed Investment Account is the removal of the existing deemed disposal regime for investments held within the account.
Instead, the account will operate using an annual tax calculation based on the value of investments held.
A tax-free threshold will apply, with a flat rate of tax applying above that threshold. The precise threshold and tax rate are expected to be confirmed as part of Budget 2027.
This could provide a considerably simpler approach for investors than the current rules applying to certain investment funds and life assurance products.
A significant feature of the proposed account is that the investment provider will administer the tax.
The provider will be responsible for calculating and reporting the tax and paying it to Revenue. This should reduce the administrative burden for individual investors compared with the current self-assessment requirements that can apply to certain investments.
The Roadmap provides for portability between providers.
Where possible, an investor will be able to transfer their investment portfolio to another provider without triggering a tax liability. The Roadmap recognises that an in-specie transfer may not always be possible, depending on the investments offered by the respective providers.
This should help promote competition between providers and give investors greater flexibility.
The introduction of the Investment Account does not remove the complexities that remain within the existing taxation system for investment products.
The Roadmap specifically states that the existing regime requires review and potential simplification.
The detailed legislative provisions for the Investment Account are expected to be developed ahead of Budget 2027.
Among the key matters still to be confirmed are:
The Roadmap also identifies a number of wider reforms to be considered in Budget 2028 and beyond, including possible changes to investment tax rates, a review of the deemed disposal regime outside the Investment Account and further administrative simplification. These are policy options for further consideration rather than confirmed changes.
The proposed Investment Account could provide a simpler and more accessible investment option for Irish individuals.
However, the final details will be important in determining how attractive the account will be for different investors. In particular, the tax rate, tax-free threshold, contribution limit and provider charges will all need to be considered.
Once further details are announced as part of Budget 2027 we will publish an updated overview of how the new scheme will operate.
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