22/10/2026
Briefing
Ireland

The details of the new landmark Individual Investment Account were published on 19 October 2026. The Minister for Finance announced its introduction in the recent Budget speech, saying he hopes to turn Ireland from a nation of savers to a nation of investors, unlocking billions of euros of savings.

Key takeaways

  • Irish-resident investors can contribute up to €12,000 annually and benefit from a €50,000 tax-free threshold, with amounts over this, subject to a 1% flat rate tax
  • While the eligible account holder will be liable for the tax, the qualifying account provider is responsible for administering and payment of the tax
  • Eligible account providers should prepare systems and complete Revenue registration ahead of the expected 1 July 2027 launch

The new individual investment account (“IIA”) is being introduced from 1 July 2027 to encourage retail investment by reducing administrative barriers and creating a more straightforward and tax-efficient framework for investing in capital markets. It achieves this tax efficiency through the levying of a 1% flat rate tax on amounts held in IIAs over €50,000 as a final tax liability. In turn, it achieves simplification by shifting the administration of the flat rate investment tax onto the qualifying account providers, albeit the actual liability to the tax amount is with the qualifying account holder.

Following on from our recent briefing about the new Irish Investment Account, we set out below the key features of the scheme and provide further details set out in the Finance (No. 2) Bill 2026 (the “Finance Bill”) on the eligibility and responsibilities of eligible providers and the taxation of the IIA.

Qualifying account providers

Broadly, qualifying providers will be MiFID-authorised service providers, regulated fund managers, banks and insurance companies that register with the Irish tax authority (“Revenue”). 

Qualifying account holders

  • Eligibility will initially be limited to one account per individual, with multiple accounts to be considered in future years
  • Qualifying account holders must be Irish-resident individuals aged 18 or over with a PPSN

Investment types

  • The eligible products allowed to be held in the IIA are listed shares and bonds, a range of investment funds including ETFs and insurance-based investment products. Investment income and disposal proceeds remain in the account and can be withdrawn or reinvested.

Taxation of the IIA

  • Qualifying account holders can invest up to €12,000 annually in the IIA, with no minimum contribution required
  • A tax-free threshold for investments of up to €50,000 will apply
  • A flat rate tax of 1% on the value of the account exceeding the tax-free threshold of €50,000 will be levied (known as investment account tax “IAT”)
  • The IAT will be calculated by reference to the average daily account value over the year. This means that although the value of the portfolio may decrease in a given year, if the daily average exceeds the threshold, tax arises on that excess amount.
  • The IAT is a final liability to tax; the Bill provides that income, profits or gains arising in respect of the eligible assets held in the IIA are exempt from other Irish tax. Therefore, existing regimes in place for taxation of retail investment will not apply; there will be no deemed disposal, no Capital Gains Tax (“CGT”) or Dividend Withholding Tax (“DWT”).
  • The Bill disapplies the 1% stamp duty levy on gross premiums for insurance-based investment products which are held as eligible investments in an IIA
  • While the eligible account holder will be liable for IAT, the responsibility for administering and remitting the payment of IAT is with the qualifying account provider. Details are set out below.  

Further details for qualifying providers

Eligibility

  • Only qualifying account providers will be able to offer these accounts. The Bill contains a list of eligible account providers.
  • Eligible providers include MiFID-authorised service providers, regulated fund managers, banks and insurance companies that meet the statutory eligibility requirements and register with the Revenue
  • Eligible account providers resident in a non-EU EEA state, not carrying on a trade in Ireland through a fixed place of business must either:
    • Enter into a contract with Revenue with specified clauses; or
    • Appoint an Irish-resident responsible person to discharge their obligations and notify Revenue of the appointment and details of that person
  • Revenue will establish and maintain a register of qualifying account providers, which will be published on a website
  • The Bill also contains the procedure for ceasing to be a qualifying account provider

Registration obligations

  • Prior to offering IIAs, all eligible account providers must:
    • Register with Revenue as a qualifying account provider
    • Make certain declarations and undertakings regarding their eligibility and compliance with the regime, details of which are set down in the Bill
    • Register for IAT
  • Revenue will maintain a register of qualifying account providers which will be made available on the website.

Ongoing obligations

  • Monitor the €12,000 annual contribution limit. Where a qualifying account provider accepts a contribution in excess of the limit without reasonable excuse, it is liable to a penalty of €3,000.
  • Apply restrictions arising during periods of non-residence of the qualifying account holder
  • Ensure only permitted assets and amounts are held in the IIA. Ineligible investments must be removed without undue delay.
  • Retain required records necessary to enable a full and true return for the required period of time as set down in the Bill

Transfer of IIA

  • The Bill provides details for the transfer of an IIA from one qualifying service provider to another. If an IIA is transferred during a calendar year, the new qualifying service provider is accountable for administering and discharging the IAT for that year.

Administering the IAT

31 December

  • Annual reporting date where the provider must calculate any IAT arising in that calendar year for a qualifying account holder

31 March

  • Notify Revenue of the IAT due
  • Following receipt of this notification Revenue will issue a statement setting out in summary form the amount of IAT due for that qualifying account provider. This will become the Return as of the Return date on 14 April.

14 April

  • Payment of IAT to Revenue per the Return
  • Provide an annual statement to each account holder
  • Deduct funds from the IIA to discharge the IAT for the qualifying account holder

Next steps

The IIA is subject to a commencement order from the Finance Minister; however, it is expected to be available from 1 July 2027. This allows time for eligible account providers to register with Revenue and take necessary steps to offer an IIA. The Bill enables Revenue to enact Regulations necessary to provide further detail on obligations of qualifying account providers. We will continue to monitor developments.

For more information, please contact a member of our Financial Regulation or Tax Groups.