Ireland’s new savings and investment account framework will exclude crypto assets, Deputy Prime Minister and Finance Minister Simon Harris said Sunday in an Instagram video.
Under the framework, savers will be allowed to hold shares, bonds, funds, exchange-traded funds and insurance products in the new account. Cryptocurrencies, derivatives and interest-bearing cash are outside the permitted range.
Plan targets household bank deposits
The scheme is intended to channel about $203 billion (€175 billion) in Irish household deposits currently held in bank accounts into investments. Each Irish tax resident aged 18 or over will be eligible to open one account.
Contributions within the tax-free allowance will be fully exempt from tax. Amounts above that level will be taxed at a low flat annual rate. The account will have no minimum contribution requirement and no lock-up period, but it will include an annual contribution cap.
Detailed thresholds and the applicable tax rate will be announced on the Oct. 6 budget day. The account is expected to open next year.
Direct investment allocation remains below EU average
Research from the Central Bank of Ireland shows Irish households allocate just 2.3% of their financial assets to direct investments such as listed shares and bonds, compared with an EU average of 7.5%.
New account will not fall under deemed disposal rule
Harris also confirmed that the new account will not be subject to the “deemed disposal” rule, which requires some funds to be taxed at 38% every eight years. The government will examine that rule more broadly in the coming weeks.
Central bank survey also covered crypto ownership
A Central Bank of Ireland survey found that about 10% of adults hold crypto assets, mainly younger men, with an average holding of about €2,266.
Before crypto assets were excluded from the new plan, Ireland had already launched its first national anti-money laundering strategy on Aug. 13, tightening scrutiny of transfers involving private wallets and due diligence requirements for overseas crypto companies.