What is the proposed Irish Personal Investment Account (PIA)?
The Irish government has announced that it’s developing a new Personal Investment Account (PIA), also known as Savings and Investment Account (SIA), to be offered from 1 July 2027. Read on to find out how it will work and what this means for Irish savers and investors.
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Key takeaways
The purpose of the Irish PIA is to of some of the over €170 billion currently held by Irish households in low-yield deposit accounts
The PIA will be completely and feature a , with balances over €50,000 taxed at 1% per annum regardless of whether the fund makes a profit or a loss
Following Budget 2027 announcements, general investment tax rate reductions apply from 1 January 2027, with Personal Investment Accounts
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What do we know about the Personal Investment Account?
Following Budget 2027 announcements, firm details for the Personal Investment Account (PIA) have now been confirmed:
- Contribution limits: Investors can invest up to €12,000 a year.
- Tax-free threshold: There is no tax on funds up to €50,000. Investors can build up a €50,000 tax-free fund (taking just over four years at maximum contribution).
- Tax on excess: Anything over €50,000 will be taxed at 1% per annum, regardless of whether the fund makes a profit or a loss in a given year.
- Fees: Note that the tax-free calculation does not take into account fees and charges levied by providers.
- Deemed Disposal: The new accounts are completely excluded from Deemed Disposal.
- Key dates: Reduced 35% investment tax rates apply from 1 January 2027, and Personal Investment Accounts officially become available on 1 July 2027.
The government has transitioned from high-level discussion to the formal execution of a Retail Investment Roadmap, and with Ireland leading ongoing efforts under the EU Savings and Investment Union (SIU), the Personal Investment Account aims to create better financial opportunities for Irish investors.
Why is the government introducing the Personal Investment Account?
Research from the Central Bank of Ireland found that Irish households missed out on €800m in deposit interest during 2024 by leaving cash in near-zero interest accounts. The research shows that inertia keeps a lot of people from moving their money, even when better rates exist.
Taxation has historically been a barrier; however, as part of Budget 2027, the government is introducing key tax rate reductions effective 1 January 2027:
- Deemed Disposal on other investments is reducing from 38% to 35%.
- Exit tax will reduce from 38% to 35%.
- Capital Gains Tax (CGT) on sales of stocks, shares and other chargeable assets is reducing from 33% to 31%.
The launch of the PIA on 1 July 2027 is the next major phase of the Retail Investment Roadmap, designed to encourage retail investing by completely excluding Personal Investment Accounts from Deemed Disposal while removing administrative burdens.
Eoghan O’Hara, Country Head Ireland at Raisin, notes:
“We welcome the focus on giving consumers greater choice across saving and investment. The introduction of a Savings and Investment Account has the potential to bring investing into the mainstream for more Irish households, particularly those who have traditionally found it difficult to know where to start.
For consumers, choice matters. Competition between providers helps drive better products, greater transparency and more attractive opportunities for savers. Our experience at Raisin shows that when people can easily compare their options and understand the value available to them, they are more likely to take an active approach to their finances.
The focus now should be on making these opportunities as accessible and straightforward as possible. The more choice and transparency consumers have, the better positioned they are to make their money work harder for them.”
How will the PIA compare to the ISA in the UK?
The Individual Savings Account (ISA) is a tax-efficient way for UK residents to save and invest their money. These accounts allow Brits to save or invest up to £20,000 each tax year without paying tax on returns. There are different types of ISA, including the Cash ISA, Lifetime ISA and Stocks and Shares ISA.
Someone depositing £10,000 into a Cash ISA paying 4% AER would get £400 in tax-free interest a year later. Compared with €10,000 in an overnight account, the most common Irish savings account with an average interest rate of 0.14%, this returns under €10 after DIRT. This example illustrates why the government is looking to introduce a tax-incentivised scheme that encourages people to save and invest.
The Irish PIA could essentially look like an "Irish ISA" and fundamentally change how Irish people view their wealth. There are also be similarities with Canada’s Tax-Free Savings Account (TFSA), which lets people invest $7,000 in products linked to the stock market without paying tax, or Sweden’s ISK (Investeringssparkonto), where savers pay a standard tax rate on their accounts, usually equivalent to just under 1% of the fund value.
Now that we have more concrete details, it looks as though the Irish PIA closely mirrors these models: investors can contribute up to €12,000 a year, building up a €50,000 tax-free fund (excluding provider fees and charges), with any excess over €50,000 taxed at a modest 1% per annum regardless of gains or losses.
Is the PIA similar to the SSIA scheme?
No, the Personal Investment Account will differ from the SSIA accounts which ran until 2002, when deposits were topped up with a 25% giveaway from the State. Instead, the PIA will allow investors to contribute up to €12,000 annually into market funds, enjoying a €50,000 tax-free threshold and a flat 1% annual tax on balances above €50,000 (regardless of profit or loss), while remaining completely excluded from Deemed Disposal.
What does this mean for Irish savers?
The announced Personal Investment Account represents a significant modernisation of the Irish financial landscape, making long-term investing more accessible and tax-efficient for savers from next year. For the average saver, this scheme will offer a transparent "wrapper" to grow wealth without the heavy administrative and tax-reporting burdens that have historically made private investing in Ireland less attractive than traditional bank deposits.
Frequently asked questions
Will I have to sell my current ETFs to move into the new account?
Based on how tax-wrapped accounts like the UK ISA or Swedish ISK work, you generally cannot transfer from a taxable account to a tax-free one.
What is the catch with the €50,000 tax-free threshold?
There will be no tax on funds up to €50,000. Investors will be able to build up a €50,000 tax-free fund. However, this tax-free calculation does not take into account fees and charges levied by providers. Anything over €50,000 will be taxed at 1% per annum, regardless of whether the fund makes a profit or a loss in a given year.
Can I use this for my kids' college fund?
Possibly, yes. Because Personal Investment Accounts will be completely excluded from Deemed Disposal and allow contributions of up to €12,000 a year, parents could build a tax-free fund up to €50,000 (with only a 1% annual tax on amounts over €50,000).
Will my investments be protected?
No, the Personal Investment Account (PIA) will not be protected from market fluctuations like traditional bank deposits are, for example. Funds invested in the stock market fundamentally change your risk profile, as the value of your portfolio can fluctuate and you may lose money if the market dips.
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All interest rates displayed are Annual Equivalent Rates (AER), unless otherwise explicitly indicated. The AER illustrates what the interest rate would be if interest was paid and compounded once a year. This allows individuals to compare more easily what return they can expect from their savings over time. Raisin Bank, trading as Raisin, is authorised/licensed or registered by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) in Germany and is regulated by the Central Bank of Ireland for conduct of business rules.