Simon Harris Introduces Tax-Free Personal Investment Accounts
Finance Minister Simon Harris announced new personal investment accounts for Budget 2027 allowing residents to contribute up to 12,000 euros annually tax-free.
Minister for Finance Simon Harris announced the introduction of new personal investment accounts as part of Budget 2027. Starting July 1, 2027, Irish residents over 18 with a PPS number may contribute up to 12,000 euros annually on a tax-free basis. The scheme allows for a tax-free threshold of 50,000 euros, though a 1 per cent tax will be levied on balances exceeding that amount regardless of whether the investment generated a profit.
The government intends to shift Irish savings from traditional bank deposits into market investments such as bonds, listed shares, and ETFs, while specifically excluding derivatives and crypto assets. To support the rollout, the Competition and Consumer Protection Commission launched a financial literacy campaign featuring a self-assessment quiz and dedicated webpage.
Industry critics have challenged the framework. IG Consumer and Chartered Accountants Ireland argued that the annual contribution limit is too low. Furthermore, critics described the 1 per cent tax on total value as a flawed principle that could force investors to pay taxes even on losses. Chartered Accountants Ireland also urged the government to finalize legislation quickly and criticized the decision to retain the eight-year deemed disposal rule.
