Lower Costs, Favorable Tax Treatment Key to Boosting Irish Investment
A survey by IG indicates that lower costs and better tax treatment are crucial for increasing Irish investment, with many regretting not starting sooner. Minister Simon Harris plans a new investment account for Budget 2027, but IG warns that delays in finalizing rules could jeopardize the launch. Ireland's high exit tax and lack of knowledge deter investors, despite significant untapped interest.
A new survey for investment platform IG reveals that lower costs and more favorable tax treatment are the primary factors likely to increase investment in Ireland. Over one in four Irish adults regret not starting to invest sooner.
Minister for Finance Simon Harris has promised a new, simplified investment account, expected to be formally announced in Budget 2027 in October. However, IG states that significant lead time is required to build the necessary infrastructure, and without timely decisions on final rules, a 2027 launch cannot be guaranteed.
Ireland's current exit tax is 38 per cent, payable on drawdown or the eighth anniversary, with no offset for losses. This regime is a major disincentive for Irish savers, who hold an estimated €170 billion in bank deposits. IG's research highlights poor tax treatment as a significant barrier, urging the Government for clarity on the new account plans.
Among non-investors, 30 per cent cite lack of knowledge, and almost one in five don't know where to start. Despite this, 35 per cent of non-investors would start if a tax-free investment account were introduced. Michael Healy, IG's UK & Ireland MD, emphasized that government policy is hindering potential investors and that delays mean lost opportunities.