Ireland will exclude cryptocurrencies from a new tax-advantaged investment account designed to encourage households to move more savings into investments, according to details outlined by Tánaiste and Minister for Finance Simon Harris.
The accounts, expected to become available next year, will allow eligible investors to hold shares, bonds, investment funds, ETFs and insurance-based products under preferential tax treatment.
However, crypto assets will not qualify, alongside derivatives and interest-bearing cash.
Every Irish tax resident aged 18 or older will be entitled to open one account. Harris said the initiative is intended to help households build greater financial resilience while encouraging wider participation in investment markets.
Tax Benefits Designed to Encourage Investing
Contributions up to a yet-to-be-announced threshold will receive full tax exemption, while amounts above that level will face a relatively low annual flat tax rate.
There will be no minimum contribution and no mandatory minimum holding period, although the government plans to impose an annual contribution limit.
The final thresholds, limits and tax rates are expected to be announced alongside Ireland's Budget 2027 on October 6, with the accounts scheduled to become available in 2027.
A major target is the approximately €175 billion ($203 billion) currently held in Irish household deposit accounts.
Irish households have relatively low exposure to investments compared with their European counterparts. Central Bank of Ireland research published in late 2025 found that households held only 2.3% of their financial assets directly in investments such as listed stocks and bonds, compared with an EU average of 7.5%.
Slightly more than 2.2% was invested through funds, despite Ireland hosting more than €5 trillion in fund assets.
Government Targets Controversial Deemed Disposal Rule
The tax treatment of eligible funds could make the new accounts particularly attractive.
Harris confirmed that Ireland's controversial “deemed disposal” rule will not apply within the new investment accounts. Under the existing system, certain investment funds are treated as though they have been sold every eight years, triggering taxation even when investors continue holding them.
The applicable tax rate was reduced from 41% to 38% in the previous budget, but pressure has continued for more substantial reform.
A government review of Ireland's investment funds sector published in 2024 recommended eliminating deemed disposal entirely.
Harris has also questioned the rule, previously describing it as “outdated” and saying he was “not convinced” that it remained fit for purpose.
The government now intends to examine the broader application of deemed disposal beyond the new investment accounts.
Around 10% of Irish Adults Own Crypto
The decision to exclude crypto is notable because digital assets already have a measurable presence among Irish investors.
Central Bank research found that approximately 10% of Irish adults own crypto assets, with ownership particularly concentrated among younger men.
The average reported holding was approximately €2,266, while more than half of crypto owners surveyed said curiosity was one reason they initially purchased digital assets.
Despite that adoption, crypto investors will not receive the same tax advantages available for stocks, bonds, ETFs and qualifying funds under the upcoming scheme.
The exclusion creates a clear distinction between traditional regulated investment products and crypto assets within Ireland's effort to encourage households to invest more of their savings.
Ireland Tightens Oversight of Crypto Activity
The decision also arrives as Ireland increases its scrutiny of the cryptocurrency sector.
On August 13, Harris introduced the country's first national anti-money laundering strategy, including enhanced checks on transactions involving private crypto wallets and stronger due diligence requirements for companies dealing with overseas crypto businesses.
That followed a 30-point financial crime action plan released in June, which identified misuse of crypto assets among Ireland's evolving financial crime risks.
The new investment account was initially announced in March and is expected to receive its full framework with Budget 2027.
While the government is preparing to offer significant tax incentives for conventional investments, cryptocurrency will remain outside the scheme. Irish investors will still be able to own crypto separately, but those holdings will not benefit from the account's preferential tax treatment.
With roughly €175 billion sitting in household deposits, Ireland's broader objective is clear: encourage savers to put more capital into investment markets while keeping the new tax incentive focused on traditional financial products.
