41% Exit Tax - Will we see Budget 2026 changes

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It's probably time to emigrate, taxes and cost are too high in Ireland. Once you have maximized your pension contributions there is nowhere to go if you have left any spare cash to invest. CGT 33% , ETFs 41%, company bonus taxed at 52%, 3rd world infrastructure, health system in shambles, you need a private health insurance to cope, we even pay for the GP whereas it's free almost everywhere else in Europe. High housing cost, high childcare cost, high cost of living, I guess all the money collected is going to feed the 4 or 5 U.S. corporations and their cronies that in return throw a few crumbs to us here who are squeezed to the last drop.
 
"Recommendations 22 and 23, which concern taxation, include consideration of the removal of the eight-year deemed disposal requirement for Irish domiciled funds and life products and alignment of tax rates across different investment choices."

This was part of the reply he gave to that question regarding removing deemed disposal.
interesting that he was specific regarding removal of the deemed disposal requirement for irish domiciled funds, so why was he being so specific, maybe he has let the cat out of the bag here that despite all the revenue shenanigans a few years ago regarding removal of revenue clarification ( that non ucits and US domiciled ETFs taxed under normal taxation and not deemed disposal) , in effect that is still the case because they are still distinguishing between them. There has to be some reason why he was so specific regarding irish domiciled funds?
 
Yes but the question is specifically about the progress on removing deemed disposal on ETFs for irish investors, he didn't ask about "irish domiciled" or "offshore funds", it was the minister in his reply that was very careful in distinguishing between them, and introducing the term "irish domiciled funds", Why?
 
TheJackal said:
Setting this thread up to monitor any potential Budget 2026 changes to the 41% Exit Tax.

Somewhat worryingly, I cannot find any mention of Exit Tax or ETFs in the Budget 2026 Tax Strategy Group papers
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Problem is, they don't know how much money they are raising on ETF to include it in the Strategy Group papers.
 
encouraging noises from MEP Regina Doherty (paywall). currently 4th most read article on business post site

If people are discouraged by complexity and penalised by arbitrary tax bills, they will not invest.

And if they do not invest, Ireland misses the opportunity to build the pool of domestic capital that could strengthen our economy, fund innovation, and support growth.

Reform is overdue.

Lowering ETF tax and removing the deemed disposal rule would be a first step towards giving households the chance to invest with confidence.

Competitiveness is not only about corporate tax rates or multinationals.

It is also about whether people at home can save and grow their money on fair terms.
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https://www.businesspost.ie/analysi...ecessary-has-hurt-irish-investors-end-it-now/
 
Still this issue is now generating interest at party level whereas previously it was a non issue, this is a good thing and about time. The key weakness for the government is that they went out of their way to attract all these mostly US ETFs to set up their domicile in Ireland by very advantageous taxation policy while simultaneously penalising small Irish domestic investors from investing in them through very punitive and complicated taxation requirements. They can't have it both ways and this needs to be highlighted on the European stage if they still refuse to remove deemed disposal taxation. The government is already on a sticky wicket with the general perception in Europe that we are a tax haven for US companies.
 
While there's plenty of opposition to Ireland's corporate tax policies, residents or politicians of other EU countries don't care about Ireland's personal taxes, unless they are considering moving here.

The Irish government also doesn't care too much about appearing attractive to EU residents, there seems to be a belief that workforce gaps real or not real can now be filled by non-EU applicants for whom ETF tax policy is well down the list of criteria.

The pressure for ETFs tax changes is only noticed by politicians who know what ETFs are, how peer countries tax them, and with an understanding of why normal citizens without the security of jobs for life want to invest outside of pensions.

That said, I'd be somewhat optimistic they'll be some sort of change in direction this year, however possibly just big enough to say we've done something so it can be ticked off the list.
 
First PQ since the Dáil resumed after Summer recess
www.oireachtas.ie

Economic Policy

Economic Policy Dáil Éireann Debate, Thursday - 18 September 2025
www.oireachtas.ie

Question:
206. Deputy Emer Currie asked the Minister for Finance to provide an update on his Department’s efforts to progress and publish an implementation plan taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector; and if he will make a statement on the matter. [49572/25]

Written answers​

As you are aware, in October 2024, following approval by Government my predecessor published the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. This was an important and wide-ranging review of the funds and asset management sector in Ireland. The Report sets out recommendations across a wide range of areas to support growth in the funds and asset management sector.

The Programme for Government has committed to progress and publish an implementation plan for consideration in Budget 2026 taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland. Detailed consideration is therefore being given to the best way to support a greater level of retail investment in capital markets. It is likely given the breadth of the Funds Sector 2030 review that the delivery of associated tax measures may take place over multiple Finance Bill cycles.

This work will also take account of developments at an EU level in respect of the Savings and Investments Union. In particular, we look forward to the Commission's recommendations on savings and investment accounts, which are expected in the coming weeks.

It is worth noting that some key recommendations of the Funds Review are already being delivered. The Central Bank has delivered the recommendations relating to Exchange Traded Fund (ETF) regulation and transparency. They have also published a consultation on changes to the Alternative Investment Fund Rulebook (AIF Rulebook) to facilitate private asset fund growth.
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Sounds like they are kicking it to the can for another year.

Last year it was Oh we're waiting on the Funds Sector 2030 report, which just so happened to come out not in time for Budget 2025

This year it's Oh we're waiting on the Commission's recommendations on savings and investment accounts, which are expected in the coming week, which just so happens to come out not in time for Budget 2026
 
Henning G said:
we even pay for the GP whereas it's free almost everywhere else in Europe.
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German health insurance is 7.5% ee + 7.5% er = 15% of wages, but yes, it does cover GP fees.

GP charges increased in France from 26.50 to 30 recently. The compulsory French health insurance covers 70% of that cost.
 
TheJackal said:
Sounds like they are kicking it to the can for another year.
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They always said it would take a number of years to implement. We may believe that it is easy to change tax from 41% to 33%, there is the financing of the country to take into account. DIRT went from 39% to 33% over a number of years. I always expected the same to happen here.

The start should be getting rid of deemed disposal and then a promise to reduce tax to CGT over a number of years.
 
When DIRT was 20%, the exit tax was 23% I think, to account for the untaxed gross roll-up.

So I presume any cuts to exit tax in the future will always leave it a bit above DIRT?
 
Protocol said:
So I presume any cuts to exit tax in the future will always leave it a bit above DIRT?
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The aims of the Funds Sector report are:
  • horizontal equity and neutrality in the taxation system when it comes to investment decisions
  • greater alignment between the taxation of collective investments and that of direct investments

It has recommended the same exit tax rate as CGT (and DIRT) of 33%.
 
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yellowmoose said:
encouraging noises from MEP Regina Doherty (paywall). currently 4th most read article on business post site
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Is the thought process that she is making noises knowing what is coming down the line or to pressure a minister?

I suspect any changes will be designed to fly under the radar.
 
yellowmoose said:
encouraging noises from MEP Regina Doherty (paywall). currently 4th most read article on business post site
Click to expand...

Is the thought process that she is making noises knowing what is coming down the line or to pressure a minister?

I suspect any changes will be designed to fly under the radar.
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I think the more senior government representatives that are calling for change in this area the better. If they are doing it because they know something is is coming that's ok with me too.
 
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