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Deposit Interest Retention Tax (DIRT) is charged at 33% on interest from Irish bank accounts, credit union shares, and An Post deposits. Banks and credit unions deduct DIRT automatically before paying interest.

If you earn EUR 100 in interest, you receive EUR 67 — the deposit-taker sends EUR 33 directly to Revenue. DIRT is a final liability tax for most savers, meaning no further income tax or USC applies. You must still declare the interest on your annual tax return.

Yes, if you (or your spouse/civil partner) are aged 65 or over AND your total household income is below the relevant exemption limit:

• EUR 18,000 for a single, widowed, or surviving civil partner
• EUR 36,000 for a married couple or civil partners (only one needs to be 65+)

You may also qualify if you are permanently incapacitated. Complete a declaration form (Form DE1 or DE2) with each financial institution to receive interest gross. The limits can be increased if you have dependent children.

The Irish Deposit Guarantee Scheme (DGS) protects eligible deposits up to EUR 100,000 per person, per institution if a bank, building society, or credit union authorised by the Central Bank of Ireland fails. The DGS is administered by the Central Bank and funded by the credit institutions covered.

For joint accounts, each holder is protected separately up to EUR 100,000. Compensation is paid within 7 working days. The DGS covers branches of credit institutions authorised in Ireland — residency or citizenship is not a factor.

Yes. All State Savings products from An Post are entirely DIRT-free and tax-free:

• Prize Bonds — no fixed interest; chance of monthly tax-free prizes
• Savings Bonds — fixed-term tax-free bond (3 years)
• Savings Certificates — fixed-term tax-free product (5 years)
• National Solidarity Bond — long-term tax-free product (5 or 10 years)
• Instalment Savings — monthly savings plan, tax-free after 5 years

State Savings are backed by the Irish Government via the National Treasury Management Agency (NTMA), so default risk is very low. Investment limits apply to each product.

Credit unions pay dividends on shares rather than interest on deposits, but the effect is similar. Credit union dividends are subject to DIRT at 33%, deducted automatically.

Credit union members benefit from the Deposit Guarantee Scheme, with protection up to EUR 100,000 per person. Many credit unions also offer regular saver accounts and term-deposit products with bonus dividends. Loans from credit unions typically have lower interest rates than mainstream banks.

Personal pension contributions receive tax relief at the marginal income tax rate — up to 40% for higher-rate earners. Relief is subject to two limits:

1. Annual earnings cap of EUR 115,000: contributions above this earnings level do not attract relief.
2. Age-related percentage limits on contributions:
   • Under 30: 15% of earnings
   • 30–39: 20%
   • 40–49: 25%
   • 50–54: 30%
   • 55–59: 35%
   • 60+: 40%

USC and PRSI are NOT relieved on pension contributions — only income tax. Employer contributions to PRSAs are also tax-deductible up to 100% of salary (no age limits).

My Future Fund is Ireland's new auto-enrolment retirement savings scheme, launched on 1 January 2026. It applies to employees aged 23–60 earning over EUR 20,000 per year who are not already in a qualifying pension scheme.

Contribution rates are phased in over 10 years:

• Years 1–3: 1.5% employee + 1.5% employer + 0.5% State top-up
• Years 4–6: 3% + 3% + 1%
• Years 7–9: 4.5% + 4.5% + 1.5%
• Year 10+: 6% + 6% + 2% (total 14% of gross earnings)

Employer and State contributions apply only on earnings up to EUR 80,000. Employees can opt out only after the initial 6 months of enrolment, with automatic re-enrolment every 2 years. Note: My Future Fund contributions do not receive the same income tax relief as private pension contributions, because the State top-up replaces it.

The Standard Fund Threshold (SFT) is the maximum capital value of pension benefits an individual can build up tax-efficiently across all schemes. Amounts above the SFT are subject to a Chargeable Excess Tax of 40%.

The SFT is rising from EUR 2.0 million in 2025 by EUR 200,000 each year:

• 2026: EUR 2.2 million
• 2027: EUR 2.4 million
• 2028: EUR 2.6 million
• 2029: EUR 2.8 million (then frozen)

A higher Personal Fund Threshold (PFT) may apply for those with prior protection. The SFT applies to defined contribution and defined benefit pensions combined.

The maximum State Pension (Contributory) rate from 1 January 2026 is EUR 299.30 per week (up EUR 10 from EUR 289.30 in 2025) for those aged 66+. This requires 2,080 full-rate PRSI contributions (40 years x 52 weeks) for the maximum rate.

The State pension age is 66, but since 1 January 2024 those born after 1 January 1958 can defer claiming until any age between 66 and 70 to receive a higher weekly rate. The State Pension is not means-tested, but is liable to income tax at the marginal rate.

You can take a retirement lump sum of up to 25% of your pension fund. The lump-sum rules are:

• The first EUR 200,000 is entirely tax-free.
• The next EUR 300,000 (i.e. EUR 200,001–EUR 500,000) is taxed at the standard rate of 20%.
• Any retirement lump sum above EUR 500,000 is taxed at the marginal rate (up to 40%) plus USC.

The EUR 500,000 cap is a lifetime limit across all pensions. The Normal Retirement Age varies by scheme but is typically 60–70.

Capital Gains Tax (CGT) is charged at 33% on most chargeable gains in Ireland. Each individual has a EUR 1,270 annual personal exemption (which cannot be transferred between spouses or carried forward).

CGT applies to gains on shares (Irish and foreign), Euronext Dublin shares, gold, cryptocurrency, and property (excluding the principal private residence). Losses can be carried forward indefinitely against future gains. CGT applies to disposals — gifts, sales, and even crypto-to-crypto trades count as taxable events.

Exit Tax applies to gains on Irish-domiciled investment funds, equivalent EU/EEA/OECD funds, and most ETFs. The rate is 38% from 1 January 2026 — reduced from 41% in Budget 2026 (Investment Undertaking Tax, Life Assurance Exit Tax and equivalent offshore fund tax all reduced).

Key features that differ from CGT:

• No annual exemption (unlike CGT's EUR 1,270)
• 8-year deemed disposal: gains are taxed every 8 years even if not sold
• Losses on funds cannot be offset against other gains
• The 38% rate is higher than the 33% CGT rate

Direct shares and Euronext Dublin REITs fall under CGT (33%), not Exit Tax.

If your non-PAYE income (including interest, rent and investment income) exceeds EUR 5,000 in a tax year, you may be liable for 4.2% PRSI on your deposit interest. PRSI was raised from 4.1% to 4.2% on 1 October 2025, with further phased increases scheduled to 2028.

PRSI must be self-assessed and declared on Form 11 — banks and credit unions do not deduct it automatically (unlike DIRT). The Universal Social Charge (USC) does NOT apply to deposit interest, regardless of source.

Interest from a bank account in another EU Member State is taxed at the standard DIRT rate of 33% and must be declared on your Irish tax return under "Foreign Income".

Interest from non-EU countries (including the UK, US, and other non-EU/EEA jurisdictions) is taxed at the higher of:

• 33% (the DIRT rate); or
• Your marginal income tax rate — 40% for higher-rate earners (above EUR 44,000 in 2026).

Late filing automatically triggers the 40% rate. Ireland's Automatic Exchange of Information agreements mean Revenue receives data from many overseas banks. Foreign interest must be declared on Form 11 (self-assessed) or Form 12 (PAYE).

Inflation reduces the real value of money over time. The European Central Bank targets 2% inflation over the medium term. Eurozone inflation can rise with energy and other price pressures.

If a savings account earns 3% nominal and inflation is 4%, real return is approximately -1% — meaning purchasing power has fallen even though the euro balance has grown. Over 20 years at 3% average inflation, EUR 100 today has the equivalent purchasing power of around EUR 55. Investments that have historically outpaced inflation include diversified equities, certain types of property, and inflation-linked bonds — though all carry investment risk.