Ireland’s planned retail investment account will offer preferential tax treatment for shares, bonds, ETFs and other eligible funds, while crypto assets and derivatives will remain outside the scheme.

Ireland is preparing to launch a new tax-advantaged investment account aimed at encouraging greater participation in capital markets, but cryptocurrencies will not qualify for the preferential treatment.

Earlier coverage: Bitcoin ETFs See First Back-To-Back Weekly Inflows In Five Months

The Department of Finance outlined the plan in its Roadmap for the Taxation of Retail Investment, published on Aug. 31. The account is expected to become available to eligible Irish residents in 2027.

Under the proposed structure, investors will be able to hold listed shares, listed bonds, financial instruments traded on regulated markets and a range of retail investment funds, including exchange-traded funds.

Crypto assets and derivatives, however, will be excluded.

The government described both categories as “highly complex and risky products,” placing them outside the scope of the new account.

Key features and exclusions of the new investment account. Source: Department of Finance

Tax details to come in Budget 2027

The final tax structure has not yet been set.

Ireland’s government plans to introduce a tax-free threshold, with a relatively low flat tax rate applying to the value of the account above that level.

The specific tax-free threshold, flat tax rate and annual contribution limit are due to be announced as part of Budget 2027 on Oct. 6.

There will be no minimum contribution requirement, although an annual maximum contribution limit will apply.

Each eligible investor will generally be allowed to hold one account, while there will be no minimum holding period or lock-in requirement.

The government also intends to allow investors to move accounts between participating providers without triggering a tax charge where possible.

New account removes some existing tax complexity

One of the main changes is the treatment of investments that are currently subject to Ireland’s deemed disposal regime.

Under existing rules, certain investment funds and ETFs can be treated as if they were sold after eight years even when an investor continues to hold them, creating a tax liability without an actual disposal.

That regime will not apply to eligible investments held inside the new account.

Instead, approved account providers will be responsible for calculating, reporting and paying tax to Ireland’s Revenue Commissioners on behalf of investors.

The government says the structure is intended to reduce the administrative burden associated with retail investing and make capital-market products easier to access.

Ireland has comparatively high levels of household savings held in cash and deposits but lower levels of direct investment than the wider European Union.

Recent government estimates show roughly 38% of Irish household financial assets are held in cash and deposits, compared with an EU average of about 30%. Direct investment in listed shares and bonds accounts for around 2.3% of household financial assets in Ireland, versus roughly 7.5% across the EU.

Crypto remains subject to separate regulatory framework

The exclusion of crypto from the tax-advantaged account does not amount to a ban on cryptocurrency investment in Ireland.

Crypto businesses operating in the country are already subject to the European Union’s Markets in Crypto-Assets Regulation, or MiCA, which introduced licensing and conduct requirements for crypto-asset service providers.

The Central Bank of Ireland acts as the national competent authority for MiCA and has made anti-money laundering, custody and market-abuse controls key areas of supervision.

Ireland has also been strengthening its anti-money laundering framework for digital assets.

The government’s latest national strategy includes tighter oversight of cryptocurrency transactions and stronger measures aimed at preventing digital assets from being used to move illicit funds.

The new investment account therefore creates a clear distinction between conventional retail investments that will qualify for tax incentives and crypto assets, which will continue to sit outside the preferential structure.