A guide to Irelands new Investment Account

Ireland’s new Investment Account is designed to offer greater potential for long-term wealth creation, and after Budget 2027, we now understand it better: 

• There’s an annual investment allowance.
• It comes with specific tax benefits.
• It has an official launch date.

This guide to the new Investment Account will inform you on the key things you need to know.

What is the new Investment Account?

The new Investment Account is an investment account designed to encourage people to consider investing for long-term wealth creation. The initiative aims to encourage people to look beyond low-interest deposits and consider ways of making their savings work harder over the longer term.

Anything that gets people talking about investing beyond low interest rate deposits and looking to make their savings work harder over the long-term, is a step in the right direction.

How much can I invest in an Investment Account?

You will have an annual contribution allowance of €12,000. This is the maximum amount you can invest in your Investment Account in each tax year. There will also be an overall tax-free fund value threshold of €50,000.

What is the €50,000 tax-free threshold?

There will be no tax on growth until the value of your Investment Account reaches the €50,000 threshold. This means many investors may not face tax for a number of years.

Importantly, once your Investment Account exceeds €50,000, the tax applies only to the amount above this threshold.

For example, if your Investment Account is valued at €52,000, only €2,000 would be subject to the 1% tax. This would result in a tax charge of €20.

Who can open an Investment Account?

Investment Account’s will be single-life plans, which means you can only open an account in your own name and cannot hold one jointly with a spouse.

To open an Investment Account, you must:

• Be aged 18 or over.
• Have a PPS number.
• Hold only one Investment Account at a time.

Can I carry forward my unused allowance?

No. If you don't use some or all of your €12,000 annual allowance, you cannot carry the unused amount forward to the following year.

The year runs from 1^st January to 31^st December. At the beginning of the next year, you will receive a new annual allowance for that particular year. Any unused allowance cannot be carried forward to the next year.

How will an Investment Account be taxed?

The Investment Account will have a 1% tax rate, but importantly, this tax will apply only to the amount above the €50,000 tax-free threshold.

For example:

Investment Account value: €52,000
Tax-free threshold: €50,000
Amount subject to tax: €2,000
Tax rate: 1%
Tax payable: €20

This gives investors the ability to build up their Investment Account before the 1% tax becomes applicable.

What other tax benefits apply?

Two other important features of the Investment Account tax regime have been confirmed:

• The 1% insurance levy will not apply.
• Deemed disposal will not apply.

When will Investment Account’s become available?

The Government has confirmed that Investment Accounts will become available from 1^st July 2027.

Zurich intends to make its Investment Account available from the launch date, allowing customers to access the scheme from day one.

Can I have more than one Investment Account?

No. You can only hold and invest in one Investment Account at a time.

However, you will be able to transfer your Investment Account from one provider to another.

This makes choosing the right Investment Account and provider from the outset an important consideration.

What should I consider before opening an Investment Account?

With the Investment Account due to launch on 1^st July 2027, prospective investors can use the time before launch to consider the options available and determine what may be appropriate for their circumstances.

As with any investment decision, an Investment Account should be considered in the context of your wider financial strategy.

Next steps

From Zurich's perspective, the introduction of the Investment Account is a positive development that could encourage more people to think about investing for the long term.

If you're interested in investing or would like to understand how an Investment Account could fit into your overall financial strategy, consider speaking to your financial broker or advisor.

The information contained herein is based on Zurich Life’s understanding of current practice and may change in the future.

This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice.