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An overview from William Fry Tax, Taxand Ireland
Ireland’s recently announced Budget 2027 delivers a €1.3 billion personal tax package alongside a projected €9.5 billion budget surplus. Key measures for individuals include a €2,500 increase in income tax bands, higher personal tax credits, increased capital acquisitions tax thresholds and a reduction in the standard capital gains tax rate from 33% to 31%. The Government also announced a new Investment Account from July 2027, offering a €50,000 tax-free threshold and a 1% flat tax on balances above that level, aimed at encouraging greater retail investment.
For the property sector, the Budget introduces targeted support for homeowners and renters, including an increase in the rent tax credit, an enhanced Help to Buy scheme and a higher rent-a-room relief threshold. A new derelict property tax will replace the existing levy system, while measures such as an extension to the Residential Zoned Land Tax exemption window are intended to support housing supply and development.
Businesses will benefit from a range of tax and administrative reforms, including simplification of corporation tax rules, an extension of start-up and investor reliefs, and enhancements to Ireland’s R&D tax credit regime. The Knowledge Development Box has been extended to 2032, while the forthcoming Finance Bill will also implement updates to OECD Pillar Two rules. The Government signalled further reviews of Ireland’s business tax incentives, investment landscape and enterprise supports, with additional detail expected when the Finance Bill is published.
Sonya Manzor, Ted McGrath and Colin Bolger from our Irish member firm, William Fry Tax, provide a comprehensive analysis of the Budget which you can read here.
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