At Cantor Fitzgerald Ireland we acknowledge the progressive steps announced in Budget 2026 to strengthen long-term saving, enhance pension participation and simplify the investment tax landscape. The Government’s €9.4 billion package introduces a range of changes that will impact pensions, investments and personal finances. Below is an overview of the key developments most relevant to investors and savers.

Pensions & Auto-Enrolment

Budget 2026 confirmed the My Future Fund auto-enrolment pension scheme will launch on 1 January 2026, marking a major change in Ireland’s retirement system. It will apply to employees aged 23 to 60 earning over €20,000 annually who are not already in a pension scheme. Employee contributions will start at 1.5 per cent and rise gradually to 6 per cent by year ten, matched by employers on a one-to-one basis. For every €3 contributed by an employee, the State will add €1. Participants will only be able to opt out during designated periods.

Other pension measures include a €10 weekly increase in the State Pension, bringing the Contributory Personal Rate to €299.30 per week in 2026. The Standard Fund Threshold will rise from €2 million to €2.2 million in 2026 and increase incrementally to €2.8 million by 2029.

Investment Tax Changes

The Exit Tax on fund and life policy investments will fall from 41 per cent to 38 per cent, applying to Irish-domiciled funds including ICAVs and Unit Trusts, Irish life assurance policies issued after 2001 and offshore funds or foreign life policies based in EU, EEA or OECD treaty countries including most ETFs.

This change follows recommendations from the Fund Sector 2030 Report and is viewed as the first step toward wider tax reform and simplification. DIRT and Capital Gains Tax remain unchanged at 33 per cent, while corporate investors will continue to pay 25 per cent Exit Tax on non-trading investment income.

Personal Tax, USC & PRSI

There are no changes to income tax rates or bands for 2026, but there are adjustments to USC and PRSI. The 2 per cent USC ceiling will increase from €27,382 to €28,700 to protect minimum wage earners, and the USC concession for medical card holders is extended to the end of 2027. Employee PRSI will rise from 4.1 per cent to 4.2 per cent on 1 October 2025, increasing again to 4.35 per cent in 2026 as part of the Government’s long-term pension funding strategy.

Capital Gains & Inheritance Tax

Entrepreneur Relief will see its lifetime CGT threshold rise from €1 million to €1.5 million from January 2026, with the 10 per cent CGT rate retained for qualifying disposals. Capital Acquisitions Tax thresholds remain unchanged at €400,000 for Group A (parent to child), €40,000 for Group B and €20,000 for Group C.

Other Key Measures

The Special Assignee Relief Programme (SARP) is extended to 2030, with new entrants from 2026 required to earn at least €125,000 to qualify. A stamp duty exemption will apply to shares in listed Irish companies with a market capitalisation below €1 billion, replacing the Euronext Growth Market exemption. The national minimum wage will increase to €14.15 per hour. The Renters’ Tax Credit is extended to the end of 2028, and mortgage interest tax relief will continue in a tapered form until the end of 2027.

Summary

Budget 2026 marks an important step for Irish savers and investors. The confirmation of auto-enrolment, the reduction in Exit Tax and the continued PRSI and USC adjustments reflect a gradual shift toward long-term reform and broader financial participation. Further detail and implementation guidance will be set out in the Finance Bill 2025.

Written by Laura Reidy – Director Wealth Management, Cantor Fitzgerald Ireland