What Budget 2027 announced for the proposed Irish Investment Account, what it could mean for families, and the gap it leaves for children.

For too long, Ireland has been underserved when it comes to everyday investing. High and often opaque fees, complex tax reporting and genuinely punishing tax rules have combined to put off even people who want to invest. I don't think that's solely the fault of the firms in the market. With a tax system like Ireland's and this much administrative friction, the economics of serving ordinary savers simply didn't stack up.

Today's Budget is the most significant attempt yet to change that. Here's what was actually announced, what it could mean for you, and the part that's still missing.

What was announced in Budget 2027

The Minister for Finance, Simon Harris, set out the details in his Budget statement. You'll see the account called the Irish Investment Account, the personal investment account, the Savings and Investment Account (SIA) or the PIA. They all refer to the same proposed scheme, which still has to be legislated for in the Finance Bill.

  • Tax-free threshold: no tax on an account valued up to €50,000.
  • Flat tax above that: 1% a year on the value above €50,000. The Minister's own example: an account worth €52,000 would pay €20 for the year.
  • Contribution limit: up to €12,000 a year (about €1,000 a month), with no minimum contribution.
  • Who can open one: Irish tax-resident individuals aged 18 and over, one account per person.
  • No other investment taxes inside the account: capital gains tax, dividend withholding tax, exit tax on funds and deemed disposal will not apply to investments held in it.
  • No tax admin for you: the provider, which could be a bank, investment firm or insurer, handles the tax and reporting to Revenue.
  • Investments, not cash: shares, bonds, ETFs and other funds. Cash can only sit in the account briefly, when buying or after selling an investment.
  • Switching: moving between providers is expected to be facilitated on a tax-neutral basis, where possible.
  • Timing: accounts are due to open on 1 July 2027, subject to the Finance Bill.

The Minister also made the point that, because of how the contribution limit and threshold work together, most people are very unlikely to pay any tax at all in the first few years, even if they contribute the maximum.

What it could mean for you

Most Irish families keep their money in deposit accounts, where inflation quietly erodes its value year after year. The proposed account strips away a lot of what made investing feel like a job: no tax returns to file, no eight-year deemed disposal calculations, and one simple rule for tax.

But in every conversation I've had with parents while building Legacy, tax was never really the thing stopping people. It's knowing where to start, and finding the time to keep at it. A better tax wrapper helps. On its own, it doesn't make anyone start.

It's also worth being clear about what this is. It's an investment account, not a savings account. Its value can fall as well as rise.

The gap: your children

There is one significant gap in today's announcement. The account is for adults aged 18 and over. It can't be opened in a child's name.

If you want to invest for your child today, the main legal route is still a bare trust. And while the exit tax on funds held outside the new account falls from 38% to 35% from 1 January 2027, fund investments in a bare trust stay inside the existing regime, including deemed disposal every eight years. The Minister said work on that wider regime will continue, but nothing more was announced today.

The Government has acknowledged the interest. When the Department of Finance published its retail investment roadmap in August, it noted interest in an investment account specifically for children. Nothing for children was in today's Budget, and there's no timeline for one. If it does come, I'll welcome it. Until then, parents are left with the same paperwork-heavy route they've always had.

I know that route first-hand. When I set out to open a bare trust for my daughter, it took weeks of back and forth, cost hundreds in upfront legal and broker fees, and involved piles of physical paperwork. That experience is a large part of why Legacy exists.

What I'm building

My aim is for Legacy to bring both into one place: investing for your children through a bare trust, set up once and automated, alongside access to your own Investment Account once the final provider rules are published. None of this is available today. Legacy is pre-launch, and offering either depends on the final rules, regulatory authorisation and provider approval.

Today is a real step forward. But as I've said before, a policy on a page changes nothing unless there are platforms that make investing genuinely accessible, for Margaret the hairdresser as much as for Paul the carpenter. Sweden showed with its ISK what's possible when the rules get out of the way and investing becomes simple. Ireland now has the chance to do the same.

For the background on how the account came about, and how it compares to the UK ISA and Sweden's ISK, read my SIA explainer.

FAQ

When can I open an Irish Investment Account?

Accounts are due to open on 1 July 2027, once the scheme is legislated for in the Finance Bill. Timelines for new legislation can shift, so treat this as the target date rather than a guarantee.

How is the Irish Investment Account taxed?

There's no tax on an account valued up to €50,000. Above that, a flat 1% tax applies each year to the value over €50,000, so an account worth €52,000 would pay €20 for the year. Capital gains tax, dividend withholding tax, exit tax and deemed disposal don't apply to investments inside the account, and the provider handles the tax with Revenue.

How much can I put into the Irish Investment Account?

Up to €12,000 a year, roughly €1,000 a month, with no minimum contribution.

Can I open an Irish Investment Account for my child?

No. The account announced in Budget 2027 is for Irish tax-resident adults aged 18 and over. The main route for investing in a child's name remains a bare trust, where fund investments stay under the existing exit tax and deemed disposal rules. The exit tax rate on those funds falls from 38% to 35% from 1 January 2027.

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Gavin Eiffe, Founder and CEO of Legacy Financial Technologies Ltd.

Legacy Financial Technologies Ltd is registered in Ireland (CRO No. 766230) and is not currently authorised or regulated by the Central Bank of Ireland. This is general information, not financial, investment or tax advice. The value of investments can fall as well as rise. Capital is at risk.