Crypto is “highly complex and risky” while ETFs get into Ireland’s new tax-free accounts
- Ireland published a roadmap on August 31 for a new Investment Account that bars crypto assets and derivatives.
- Listed shares, bonds, funds, and ETFs qualify, and the deemed disposal rule will not apply inside the account.
- The thresholds and rates arrive on Budget day, October 6, with accounts opening in 2027.
Crypto assets will not be included in the tax-advantaged Investment Account Ireland plans to open to every adult in 2027, the government confirmed on Monday.
The list includes listed shares, bonds, and exchange-traded funds (ETFs).
The thresholds and rates land on Budget day, October 6
The rules are set out in a Roadmap for the Taxation of Retail Investment, which was published by the Tánaiste and Minister for Finance Simon Harris and Minister of State Robert Troy on August 31.
Eligible holdings are listed shares, listed bonds, instruments traded on a regulated market, and a range of retail investment funds, including ETFs.
“Highly complex and risky products, including derivatives and crypto assets, will not be eligible,” the roadmap states.
The roadmap also excludes interest-bearing cash, putting cryptocurrencies in the same class as the riskiest instruments the Department of Finance was willing to name.
“Capital markets should not feel remote or like something that is only for people with significant wealth or financial expertise,” Harris said.
He added that “investing involves risk and is best considered over the medium to longer term.”
Each person can only have one account. It is available to Irish tax-resident persons aged 18 or over who hold a PPSN, with no minimum contribution and no lock-in period, but there will be an annual contribution limit.
Money below a tax-free threshold is free of tax. Anything over that is charged a small flat rate each year on the account’s value.
The flat rate, the precise threshold, and the annual cap will be set on Budget Day, October 6, in Budget 2027.
Under the design, qualifying providers will calculate, report, and pay any tax due to Revenue on the account holder’s behalf.
Portability between providers is intended to be possible on a tax neutral basis, with the legislative framework arriving in the Finance Bill with accounts live in 2027.
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Deemed disposal taxes funds every eight years at 38%
Ireland’s “deemed disposal” rule treats some funds, including ETFs, as if they were sold every eight years, triggering tax even if nothing changes hands. That rule will not apply inside the new account.
The disposal tax was cut from 41% to 38% in Budget 2026, while a government review in 2024 recommended the rule be scrapped altogether.
Harris told the Dáil earlier this year that he was “not convinced” the tax was fit for purpose and described it as “outdated.” The government would be taking “a broader look at deemed disposal overall in the coming weeks,” he said.
The roadmap has rate cuts, a review of deemed disposals, and administrative simplification as targets from Budget 2028 onward.
Just 2.3% of Irish households’ financial assets are in direct investments such as listed shares and bonds compared to an EU average of almost 7.5%, while 38% is in cash and deposits compared to an EU average of 30%.
Research by the Central Bank of Ireland showed Ireland, which has more than €5 trillion in fund assets, had some of the lowest retail participation rates in the bloc.
The EU’s DAC8 directive took effect on January 1, 2026, requiring exchanges and brokers to report user and transaction data to national authorities, as Cryptopolitan has reported.
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FAQs
Why is crypto excluded from Ireland's new Investment Account?
The government's roadmap classifies crypto assets and derivatives as "highly complex and risky products," and on that basis rules them ineligible.
When will the Investment Account open and when are the tax details announced?
The tax-free threshold, flat rate and annual contribution limit will be announced on Budget day, October 6.
What is the deemed disposal rule and how does the account change it?
Deemed disposal treats certain funds and ETFs as if sold every eight years, taxed at 38% after a Budget 2026 cut from 41%. That rule will not apply to investments held inside the new Investment Account.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Randa Moses
Randa Moses is an editor and reporter at Cryptopolitan covering tech, AI, robotics, crypto, scams, and hacks. She has worked in the crypto space since 2017. She held roles at Forward Protocol, AmaZix, and Cryptosomniac. Randa holds a degree in Electrical and Electronics Engineering from the University of Bradford.
