Is there a tax-free equivalent to an ISA account in Ireland?

An ISA (individual savings account) is a UK tax-free scheme that’s not available to Irish residents. However, Irish savers can use high-yield deposit accounts through platforms like Raisin to grow their money, and will soon be able to use the upcoming tax-advantaged Personal Investment Accounts (PIAs), which are expected to become available in July 2027. 

An ISA is simply a UK savings wrapper designed to hold cash, stocks, or shares without incurring tax on the interest or capital gains. The rules surrounding this scheme are very strict. To open and contribute to an ISA account, you must meet specific eligibility criteria:

• You must be a resident of the United Kingdom for tax purposes

• You can’t use the ISA allowance if you live permanently abroad

• You must be 18 years of age or over

Crown servants, members of the armed forces and their spouses are the only major exception to the residency rule, and can continue contributing to ISAs regardless of their location. 

This means that if you live in the Republic of Ireland, your savings and investments are subject to local tax laws. You can’t use a UK wrapper like a stocks and shares ISA or cash ISA to bypass Irish tax obligations. You will need to navigate standard Irish taxation, including DIRT (Deposit Interest Retention Tax) on standard savings, exit tax on funds, or capital gains tax (CGT) on individual shares.

Following the recent Budget 2027 updates, the Irish government has acknowledged the need to simplify the investment landscape for retail savers. While an exact replica of the UK system is not expected, the proposed framework is known as a Savings and Investment Account (SIA) or Personal Investment Account (PIA), sometimes referred to informally as an Irish ISA. These are merely working titles while the official structure and naming conventions are still under government review.

The core mechanism being discussed involves a simplified tax model. Instead of navigating the complexities of exit tax or capital gain tax on every trade, retail investors might benefit from a tax-free threshold. Any gains above this threshold would likely be subject to a simplified flat rate. This aims to encourage long term saving while reducing the administrative burden on the individual.

A core benefit of the new Irish PIA framework is that the account provider will calculate, report, and pay the tax directly to Revenue, removing the need for savers to file complex manual tax returns for these investments.

Legislation for this new framework is slated for 2026, with the intention to make SIAs available to the public from 1st July 2027. This leaves a gap for savers looking for options today.

The UK framework offers an absolute tax free allowance up to a set limit. Savers can place up to £20,000 per year into their accounts and pay zero tax on the generated interest or capital gains.

The Irish proposal takes a slightly different approach. Instead of a hard cap on deposits that remain entirely tax free, the Irish model is expected to use a threshold system for the gains themselves. Both systems share a common goal of making it easier for people to invest while reducing and simplifying tax liabilities.

This is how the proposed PIA framework could compare to the UK ISA model, based on what we know about it currently:

Raisin provides a way to access competitive interest rates with savings accounts from partner banks across Europe. By broadening your horizons beyond local options, you can find rates that help your savings keep pace with rising costs.

Explore the rates available on longer term deposit accounts and easy access demand deposit accounts.

It’s important to understand the tax implications of saving abroad. The interest you earn on these European accounts is subject to DIRT. However, the higher gross interest rates available through our platform can often outpace local offerings even after you account for this tax. You can find a complete breakdown on our tax page.

Security is a priority for any saver. All partner banks on the Raisin platform are fully licensed. Your funds are protected up to €100,000 per bank, per depositor under the statutory Deposit Guarantee Scheme (DGS) of the respective European country.