On 6 October 2026, Tánaiste and Minister for Finance Simon Harris will deliver Budget 2027, his first as Finance Minister. While income tax and childcare measures are expected to feature, the centrepiece for many savers and investors will be the long-awaited Savings and Investment Account (SIA).

Harris has confirmed the government is preparing a new investment scheme aimed at what has been described as “middle Ireland”. The case for one is clear. Irish households currently hold around €175 billion on deposit, with average returns of 0.25%, considerably lower than inflation, which reached 3.7% in August (Source: RTE). Moreover, only 2.2% of household savings are invested, with 38% of households’ wealth held in cash. The Central Bank of Ireland estimates that households leave €800m in interest on the table every year, simply by not being in higher-yielding accounts. (Source: Central Bank of Ireland & Irish Examiner)

Whilst final figures will only be confirmed on budget day, the broad structure of the SIA has been clearly signalled.

• Tax-free, up to an annual threshold, with a flat 1% tax rate applied north of the threshold. The annual threshold is expected to be between €20,000-30,000.
• This flat tax will represent simplification for investors with the current 33% CGT on shares or the 38% exit tax/deemed disposal on funds not being applicable within the account.
• Only one account per person over the age of 18.
• Eligible investments are expected to include listed shares, listed bonds, regulated financial instruments and a range of retail investment funds and ETFs.
• Administration is expected to sit with banks, platform brokers and financial institutions directly.
• Tax on any value above the threshold (income and CGT tax free) under the scheme is expected to be calculated, deducted and remitted directly to Revenue by the bank, removing the need for investors to file tax returns or account for the tax themselves.

Whilst the SIA is expected to be similar to the Swedish and UK models, the government has also been clear it will not simply copy either. The Irish version is being shaped with input from the Fund Sector Review and a 2025 European Commission recommendation encouraging EU states to modernise retail investment frameworks. The SIA is expected to be legislated for Budget 2027, with accounts likely becoming available from Summer 2027.

The Finance Minister has also indicated that the government would be looking to reform the 8-year deemed-disposal tax. Under the existing rules, investors in Irish and EU-domiciled funds must self-report/disclose and are taxed every eight years on unrealised gains as part of the gross roll-up regime. It has often been viewed as a major barrier for investors looking to compound their wealth with broadly diversified funds.

Whether deemed disposal will be scrapped entirely is still unclear, and reform may yet be pushed into Budget 2028. In the meantime, investors have generally found two ways to mitigate the eight-year rule, with the SIA a potential third. Some allocate more to their pension rather than to individual investment accounts, though this introduces a liquidity trade-off. Others invest in securities or portfolios of securities, which fall under the capital gains tax regime. CGT is chargeable on gains at a rate of 33%, but there is an ability to offset gains vs losses.

In relation to other taxes, the current CGT rate sits at 33%. Earlier this year, Taoiseach Micheál Martin did indicate the rate was too high and discouraged investment. Whilst it seems unlikely that the headline rate will be reduced from 33% to 20%, there may be enhancements to Entrepreneur Relief, which could see the rate drop from 33% to 10% for qualifying business disposals.

The lifetime limit was increased from €1m to €1.5m in Budget 2026, with potential for that value to rise to €3m in Budget 2027. Moreover, a change to shareholding requirements would be welcomed. At present, one must have a 5% shareholding in a business to qualify for relief, a distinct challenge for founders, who in some cases can see their ownership diluted below the threshold after multiple investment rounds. Suggestions have also been made by Euronext to abolish the 1% stamp duty on Irish share transactions, with the exchange provider claiming it deters companies from listing on the exchange, undermining Ireland’s financial market competitiveness.

Written By Aaron Dempsey, Equity Research Analyst & Aaron Cunningham, Wealth Consultant, Cantor Fitzgerald Ireland.