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The introduction of the new savings and investment account (SIA) was one of the most anticipated changes of Ireland’s Budget 2027. In August 2026, the Irish Department of Finance published its ‘Roadmap for the Taxation of Retail Investment’ (Roadmap) which set out many key features of SIAs (see our publication on the Roadmap). Budget 2027 has now confirmed how SIAs will be taxed.
Tax regime for SIAs
Irish SIAs will operate outside the existing regime for taxation of retail investments and will, instead, be subject to their own specific tax regime. Income and gains within an SIA will not be taxed on an ‘arising’ basis. Instead, an annual flat rate of tax (expected to be 1%) will be applied to the amount by which the value of investments held within an SIA exceeds a tax-free threshold amount (expected to be €50,000). While there will be no minimum contribution reflecting the retail nature of the product, there will be a cap on annual contributions, which is expected to be €12,000.
The new accounts will become operational from 1 July 2027. Account providers will be required to manage all tax reporting, administration and payment on behalf of account holders.
Regulated firms looking to become providers of these new accounts will have to wait until the publication of Ireland’s Finance (No. 2) Bill 2026 for a full detailed overview of how the accounts will operate in practice, which will enable product providers to identify what they will need to do to navigate the new scheme.
Other measures to simplify the landscape for retail investors
The Funds Sector 2030 Report, published by the Irish Department of Finance in October 2024, made several recommendations on how Ireland’s existing regime for fund investments could be simplified to promote investment by retail investors. Amongst the recommendations made was a reduction in the rate of Investment Undertaking Tax (IUT) and Life Assurance Exit Tax (LAET) to align these taxes with the capital gains tax rate. This recommendation was again considered by the government in the Roadmap.
Last year’s Budget saw both IUT and LAET reduced from 41% to 38%. This year, the Minister announced a further reduction from 38% to 35%, coming into effect from 1 January 2027.
Bank levy
The bank levy will be extended for a further year with a target yield of €200 million. AIB, EBS, BOI and PTSB will continue to be liable and, as in 2026, the bank levy will be apportioned based on the level of eligible deposits held by each of these institutions.
Conclusion
SIAs will be a significant development for the Irish retail investment market. Firms that intend to offer SIAs should start preparing now. They should check if their existing authorisation and permissions cover the provision of SIAs, and assess whether their systems will be able to appropriately handle valuations, tax calculation, contribution monitoring and transfers. Firms that offer simple digital journeys, clear and fair pricing and operating models that can scale will be best placed to win market share.
Our Financial Regulation Advisory and Tax teams can help firms prepare for SIA implementation by reviewing existing authorisations and permissions, and advising on product structuring, contract terms, marketing, suitability and appropriateness assessments, disclosures and client onboarding.
For further information, please contact the Partners on our Financial Regulation Advisory team (Eoin O'Connor, Patrick Brandt, Eimear O’Brien and Louise Hogan), Partners on our Tax team (Paul Fahy, James Somerville and Amelia O’Beirne), Emma Hartnett, Tax Strategy Advisor, or Sarah Lee, Senior Practice Development Lawyer.
Date published: 9 October 2026
