Ireland has unveiled plans for a new state-backed savings account that would let households invest in listed shares, listed bonds and exchange-traded funds while excluding crypto assets and derivatives, according to Bloomberg. The scheme is due to launch at the start of next year. Investment gains within the account will be tax-free up to a certain threshold, while returns above that level will face a lower standard tax rate. The government said the exact threshold and rate will be set out in the budget on Oct. 6. Ireland also said the new accounts will not be subject to the current 38% deemed disposal tax that applies to investment fund products. Officials added that they will consider changes to the deemed disposal treatment for other investment products as part of a broader effort to reduce tax barriers facing retail investors. The measure forms part of a wider European Union push to encourage savers to move some of the roughly €11 trillion, or $12.8 trillion, held in bank deposits into investments, with the stated aim of supporting economic growth in Europe and building household wealth.
Ireland has announced a new state-backed savings account that would allow investments in listed stocks, listed bonds and exchange-traded funds, while barring crypto assets and derivatives, according to Bloomberg.
The plan is scheduled to go live at the start of next year. Under the proposal, investment gains within the account will be tax-free up to a certain limit, and any returns above that threshold will be subject to a lower standard tax rate. The government said the exact threshold and tax rate will be announced in the Oct. 6 budget.
The government also said these accounts will not be covered by the current 38% deemed disposal tax applied to investment fund products. It added that it will consider adjusting the deemed disposal framework for other investment products to reduce tax-related barriers for household investors.
The move is part of a broader European Union effort to encourage savers to shift part of the roughly €11 trillion ($12.8 trillion) held in bank accounts into investments, with the aim of supporting European economic growth and increasing household wealth.
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