Presenting his 2027 budget, Finance Minister Simon Harris told lawmakers that residents would be able to open Irish Investment Accounts starting in July. He said individuals could use those accounts to invest in stocks, bonds and exchange-traded funds (ETFs), many of which are listed on the Dublin stock exchange, via a list of state-approved banks and brokers.

The first €50,000 in each account would not be taxed, while any balances above that would be charged 1% on the excess amount, he said. This means a fund valued at €100,000, for example, would face an annual tax liability of €500.

Under the plan, most investors would take a few years to grow their accounts to the €50,000 threshold. Annual contributions to each account would be capped at €12,000, Harris said, underscoring the center-right government’s aim to spur investment by middle-class savers, not the wealthy.

This approach, he said, “strikes a balance between encouraging small-scale investment, while ensuring that those with greater means continue to make a fair contribution.”

Investment firms offered a muted welcome, noting that Harris’ regime retained significant disincentives.

“Today was the government’s chance to get Ireland investing, and it has missed it,” said Michael Healy, chief executive of online trading and investment platform IG Consumer.

Healy dismissed Ireland’s plans as “fundamentally flawed,” as they will tax all balances above €50,000, regardless of whether they have recorded any gains that year. “Someone could face a tax bill even when their investments have fallen in value — effectively paying tax on losses,” he said.