Tánaiste Simon Harris has recently announced that Ireland is planning to introduce a new tax-free savings and investment account, potentially launching in 2027.
If introduced, it would allow Irish savers to earn interest and investment returns without paying tax, up to certain limits.
This would mark one of the biggest changes to savings and investment tax in Ireland in decades.
Here’s what FastTax.ie customers need to know.
Why Ireland is introducing a tax-free savings account
Irish households currently hold over €150 billion in deposit savings.
Most of this interest is taxed at 33% DIRT, reducing the real return savers receive.
The Government’s goal is to encourage people to:
- Save more
- Invest more
- Earn better long-term returns
Many countries already offer tax-efficient savings accounts. The UK, for example, allows savers to earn tax-free returns through ISAs. Ireland is now looking to introduce a similar option.
How the new tax-free savings account may work
Full details haven’t yet been confirmed, but the new scheme may allow:
- Interest to grow tax-free
- Investment gains to grow tax-free
- Dividends to grow tax-free
- Contributions up to an annual limit
This would be very different from today’s system, where:
- Deposit interest is taxed at 33% DIRT
- ETFs are taxed at 41% exit tax
- Investment gains are taxed at 33% CGT
For savers and investors, the long-term benefit could be significant.
When will the new savings account start?
The proposed launch timeline is 2027.
Until then, the current tax rules remain in place.
This means:
- Deposit interest is still taxable
- Foreign interest must still be declared
- Investment gains remain taxable
FastTax.ie customers should continue filing their returns as normal.
What FastTax.ie customers are doing now
Many FastTax.ie customers are already taking steps to improve their returns today.
One popular option is using online savings platforms like Raisin, which provide access to European banks who may offer higher interest rates. If you use foreign savings accounts, it’s important to declare the interest correctly as part of your tax return.
FastTax.ie makes this simple.
You may also find helpful: (internal links)
- How to declare foreign savings interest
- How to use your Raisin statement to file your return
Is the new tax-free savings account guaranteed?
No, so far limited information has been released and it seems many details are still being ironed out.
FastTax.ie will keep customers updated as more information becomes available.
What this means for Irish savers
This proposal is a positive step. It recognises that Irish savers need better options to grow their money. But until the new account launches, existing tax rules still apply.
Making informed decisions and filing correctly remains essential.
How FastTax.ie helps
FastTax.ie helps Irish savers:
- Declare deposit interest and all other income correctly
- File their tax returns safely
- Stay fully compliant with Revenue
All without accountant fees or complexity.
The bottom line
Ireland’s proposed tax-free savings account could offer major benefits in the future.
But for now, savers should continue managing their tax properly under the current system.
FastTax.ie makes this easy.
