10/9/26
Ireland's New Savings and Investment Account: What We Know So Far
Ireland's New Savings and Investment Account: What We Know So Far
Ireland is about to get a new way to invest.
The Irish government is introducing a new Savings and Investment Account, or SIA, which will be announced in the Budget on October 6 and is expected to be available to the public in 2027. It's designed to make investing simpler, cheaper, and more accessible for ordinary people, and it could be a big shift for Irish savers.
Here's what we know so far.
Why This Is Happening
Irish households hold more than €170 billion in bank deposits, much of it earning close to nothing once you account for inflation.
Meanwhile, investing in funds and ETFs in Ireland has been made unnecessarily complicated and expensive by the tax rules, particularly something called deemed disposal.
Simon Harris, the finance minister, has made getting that money moving into the market, rather than sitting idle in the bank, a personal project.
The design borrows from two existing models. The UK's ISA provides a straightforward tax-free wrapper for stocks, funds, and ETFs. Sweden's ISK applies a flat annual tax based on the total value of the account rather than on individual gains, which removes a lot of complexity.
The Irish SIA is expected to combine elements of both.
What We Know So Far
The final details haven't been announced yet, but here's what has been confirmed or strongly indicated so far.
There will be a tax-free threshold, below which no tax is paid.
Above that threshold, a flat annual tax rate will apply to the value of the account, not to individual gains when you sell. Your provider will handle the tax administration on your behalf, so you won't need to file anything yourself.
There's no minimum amount you need to put in, but there will be a maximum annual contribution limit, similar to the UK's ISA.
There will be no lock-in period, meaning you can access your money when you need it.
Eligible investments will include listed shares, bonds, regulated funds, and ETFs. Crypto and derivatives (complex contracts whose value depends on the price of something else) won't be allowed.
You also won't be able to just park cash in the account long-term. It's built for holding investments, with cash allowed only while you're buying, selling, or briefly resting between trades.
Moving your account to a different provider should be possible without triggering a tax bill, though only "where possible."
The Deemed Disposal Question
For Irish investors, the most important change buried in all this might be what happens to deemed disposal.
Currently, Irish investors are charged a 38% exit tax on gains from ETFs and investment funds every eight years, even if they haven't sold anything. It's widely disliked because it disrupts the compounding effect of long-term investing and creates a significant disincentive to hold funds for extended periods.
The good news: new investments made through an SIA will not be subject to deemed disposal.
The less certain news: the government has said broader reform of deemed disposal for investments held outside an SIA has been deferred until at least Budget 2028. That means existing ETF investments are unlikely to be moved into an SIA tax-free under the initial scheme.
Harris has said the account is primarily designed to bring new investors and new money into the market, rather than to overhaul the tax treatment of existing portfolios.
Who Will Offer It
Several platforms have already confirmed they plan to offer SIAs.
Revolut, which has more than 3 million users in Ireland, has committed to launching the product.
Trading212 and Lightyear have also confirmed they will offer the accounts.
The main pillar banks, AIB and Bank of Ireland, are expected to do so through their investment arms, Goodbody and Davy respectively.
Others are more cautious.
Etoro says it's still assessing the final framework before committing, N26 has said it has no immediate plans to take part, and Trade Republic does not currently offer ISAs or ISKs. Monzo said it hopes to be eligible once the final details are confirmed.
What It Will Cost
The cost structure is expected to mirror established European equivalents.
Platform fees of up to around 0.5% per year, plus ongoing fund charges of up to around 1% per year for index-tracking funds, are typical. Fees can make a meaningful difference over time, so it will be worth comparing providers once the accounts launch.
Add in the annual flat-rate tax and current inflation of around 3%, and the combined hurdle rate comes to roughly 4.5% per year. That's the return your investments need to generate to preserve the value of your money and cover costs.
That sounds like a lot, but remember that money sitting in a deposit account earns only 1% to 2% while inflation erodes its value. And for context, the long-run average annual return of a broad global stock market index has historically been around 8% to 10%, which puts those costs in a much more manageable perspective.
What's Next
The Budget on October 6 should confirm the tax-free threshold, the flat rate, and the annual contribution cap.
Legislation is expected to follow in the Finance Bill, with the accounts opening to the public sometime in 2027.
Harris has also floated a "phase two," where SIAs could eventually be used to invest directly in Irish startups and scaling companies. That's a later-stage idea, and it won't be part of the account at launch.
What This Means for Irish Members
If you're based in Ireland and currently sitting on savings in a deposit account, this is worth paying attention to. The SIA is designed for exactly that - people who have money they don't need in the short term but haven't invested it because the process has felt too complicated or too expensive.
But there's no need to do anything yet, because the account doesn't exist until the Budget confirms the numbers.
For anyone already investing in ETFs in Ireland, the key thing to watch is what happens with deemed disposal, both for new investments inside the SIA and for existing holdings outside it.
If the new framework delivers a simple, low-tax wrapper with no deemed disposal, it removes the two biggest structural barriers that have kept Irish savers on the sidelines.
Have any questions? Drop them below.
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