Reviewed by the advisory team at Greenway Financial Advisors Ltd. · Dublin · Updated October 2026
Updated for Budget 2027: Capital Gains Tax fell from 33% to 31% for disposals on or after 7 October 2026. Exit tax on funds and life assurance investments is 38% in 2026, and Budget 2027 announced a cut to 35% from 1 January 2027, subject to the Finance Bill.
Are you confused about the taxes you pay on investments? What taxes do you pay on investments.
Many investors find it challenging to understand the complexities of investment taxes.
In this blog, we’ll explain different types of investment taxes, including capital gains, dividends, and interest income.
Whether you’re investing in unit linked investments, indices, stocks, bonds or real estate, this guide will help you understand your tax obligations.
So, let’s get into the details and make your investment journey smoother and more profitable!
Compare investment options, understand the risks, and see what fits your goals, or talk it through with an adviser.
What Should You Know About Investment Taxes?
Firstly, it is important to clearly understand the taxes you need to pay on your investments. Knowing the tax implications can help you avoid unpleasant surprises, make more informed financial decisions and potentially save money in the long run.
Types of Investments and Their Tax Implications
Here are the different types of tax on different types of investment
Tax on Buying Stocks and Shares Directly
When you invest in stocks and shares, you can earn money through dividends or the selling the shares when they have increased in value.
There are multiple types of taxes that can be applied at different rates. This is particularly important for anyone who has taken part in company share purchase schemes like:
- Approved Profit Sharing Schemes (APSS).
- Save As You Earn (SAYE) Schemes.
- Key Employee Engagement Programme (KEEP).
- Employee Share Ownership Trust (ESOT).
All of these schemes have different tax rules that apply and it is important to know how they will impact you.
Check the information provided by your employer or book a free initial appointment with us to explore further.
Dividends are payments made by companies to shareholders from their profits. They are usually taxed multiple times.
- The Company Pays Dividend Withholding Tax @ 25% when issuing dividends.
- The Individual Receiving the Dividend pays income tax, USC and PRSI on the dividend.
- The Dividend Withholding Tax is credited back to the individual.
Dividend Withholding Tax Example
| Dividend Payment | €2,000 |
| Company Pays Dividend Withholding Tax @ 25% * €2,000 | €500 |
| Net dividend received: | €1,500 |
Personal Taxes are charged on the Full Value of the Dividend
| Income Tax (assuming marginal rate) € 40% of €2,000 | €800 |
| USC is charged @ 8% of €2,000 | €160 |
| PRSI at 4.35% of €2,000 (rate from 1 October 2026) | €87 |
| Total tax due = €1,047 minus €500 (Dividend Withholding Tax credit) | €547 |
| Dividend remaining after all taxes paid | €953 |
Capital Gains Tax
Capital gains occur when you sell or dispose of your assets, including shares, for more than you paid for them. Capital Gains Tax is 31% for disposals on or after 7 October 2026. It was 33% before that.
In Ireland, capital gains are charged no matter how long you have held the assets, even if you give it as a gift.
If you made money on buying and selling stocks, shares, indices etc capital gains will apply.
Personal Exemption
Each tax year, the first €1,270 of your gain or gains (after deducting losses) are exempt from Capital Gains Tax. You are entitled to this exemption whether you are resident or non-resident. You can’t transfer this exemption to your spouse or civil partner.
Example of Capital Gains
| I bought stock on 1st Jan 2024 worth: | €1,000 |
| I sold the stock on 6th March 2027 for: | €1,200 |
| Money made in sale: | €200 |
| Capital gains due: Gain is below exemption limit of €1,270, and no other gain this year. |
€0 |
Capital losses occur when you sell or dispose of an asset for less than its purchase price or cost basis.
In other words, it is the financial loss you incur when the sale price of an asset is lower than the original cost. Capital losses can be used to offset capital gains. It is important to report capital losses annually.
You can also carry capital losses forward to offset against future capital gains, and you can also use your losses to offset your spouse or civil partner’s gains in a given year.
Example Capital Gains with Losses
| I bought stock on 1st Jan 2024 worth: | €10,000 |
| I sold the stock on 6th March 2027 for: | €12,000 |
| Money made in sale: | €2,000 |
| Capital gains – Personal Exemption €2,000 – €1,270 |
€730 |
Taxable capital gain minus capital losses = balance taxed at 31%
| Losses declared last year | €500 |
| Taxable capital gain – capital losses | €230 |
| 31% Capital Gains Tax on the remaining gain | €71.30 |
| Capital Gains Tax due | €71.30 |
Tax on Bond Income
In direct investments, bonds are a fixed-income investment that represent a loan made by an investor to a borrower, usually a company or government.
In Ireland, the taxation of bonds depends on the type of bond and whether it is held by an individual or a company.
There are 3 main types of bonds you can purchase. Government Bonds, State Savings Schemes (low risk, low return) and Corporate Bonds (higher risk, higher return).
Assuming you are an individual purchasing a bond the below taxes will apply when the bond matures, or when you receive income or interest.
| Type of Bond | Income Tax on Interest Earned | USC/PRSI on Interest Earned | Capital Gains |
| State Savings Bonds | Exempt | Exempt | Exempt |
| Irish/EU Government Bonds | Income Tax at 20/40% | USC + PRSI | 31% on gains |
| Corporate Bonds | Income Tax at 20/40% | USC + PRSI | 31% on gains |
Tax on Savings
Deposit Interest Retention Tax is a tax in Ireland that applies to the interest earned on savings held in deposit accounts with banks, credit unions, and other financial institutions.
It is designed to tax the returns individuals earn from their savings without requiring them to include the interest in their annual tax returns.
Money in Bank Accounts: Deposit Interest (Interest from Savings Accounts):
- Interest earned on savings in deposit accounts is subject to Deposit Interest Retention Tax.
- Deposit Interest Retention Tax rate: 33% (2026).
- Banks and financial institutions deduct Deposit Interest Retention Tax at source, so you receive the interest net of tax.
- Exemptions exist for people over 65 and Permanently incapacitated individuals if income is under €18,000.
Tax on Investment Property
If you personally own rental property (i.e. in your own name and not through a ltd company or pension product), the income you receive from renting it out is taxed as regular income.
This means every year you will have to complete an income tax return even if you are a PAYE employee of another company.
Only certain costs are allowable to be deducted each year. Be careful about what you try and claim as legitimate expenses.
Additionally, when you sell a property, you may have to pay capital gains tax if the property has increased in value.
For instance, if you bought a house for €200,000 and sold it for €300,000, your capital gain is €100,000. At the 31% rate that applies from 7 October 2026, the tax on this gain would be about €31,000.
Tax on Investments Through Life Company
These are easy to access investment products typically sold through life companies (Aviva, Irish Life, New Ireland, Standard Life and Zurich)
These are communally referred to as collective investments, mutual investments, unit linked investments, or UCITS (Undertakings for Collective Investment in Transferable Securities).
You invest in a fund that owns the underlying asset (stock, bond, property etc). but you never own the asset. You own units in a fund that owns the asset. Since you don’t own the asset they are treated differently for tax purposes.
Gross Roll Up Rule
Irish investors are subject to an exit tax when they redeem or sell their fund units or when deemed disposals apply (every 8 years if they hold the units long-term).
The tax is deducted automatically at each 8-year anniversary, whether you take a withdrawal or not. The rate is 38% on gains for individuals in 2026. Budget 2027 announced a cut to 35% from 1 January 2027, subject to the Finance Bill.
Want to know whether your investments are held in the most tax-efficient way? Call us on 01 853 2727.
Since the life company takes care of the tax, you don’t need to file an income tax return for these type of collective investments.
Example UCIT 10 Year Investment of €10,000
| Year | Growth | Fund End of each year |
| 1 | 4.51% | €10,451 |
| 2 | 3.96% | €10,864.86 |
| 3 | 3.02% | €11,192.98 |
| 4 | -7.45% | €10,359.10 |
| 5 | 15.89% | €12,005.16 |
| 6 | 1.58% | €12,194.84 |
| 7 | 11.85% | €13,639.93 |
| 8* | -12.59% | €11,922.67 |
| 9 | 7.68% | €12,838.33 |
| 10 | 16.70% | €14,982.33 |
*Gross Roll Up Rule applied now.
| Capital Invested | €10,000 |
| Tax on Growth @ 35% | €1,744 |
| Profit Remaining | €3,239 |
| Return on Investment (ROI) after tax | 32% |
Special Considerations for Tax-Advantaged
Tax-advantaged investments, like pension funds offer special tax benefits. For instance with pensions you save income tax on contributions and your fund grows tax free.
When you access your pension you can normally withdraw 25% tax free.
Additionally, some savings accounts might offer tax exemptions on the interest earned, providing a more tax-efficient way to save and invest. These are normally linked to state savings products like saving certificates or prize bonds.
International Taxation
Tax treaties are agreements between countries to prevent double taxation. Ireland has treaties with many countries, which often include provisions for tax rates.
It is important to understand the rules that apply to the type of income that is been generated in another country (employment, dividend, rental income, interest, royalites, business profits, capital gains).
It can be easy to make a mistake and not pay tax that is labile or pay too much tax.
Conclusion
Understanding the taxes on your investments is important for effective financial planning.
We’ve given a brief overview of the tax implications for various investments, strategies to minimise tax liability, and the benefits of tax-advantaged accounts and international considerations.
By staying informed, you can make smarter investment decisions and maximise your returns.
For personalised advise and expert help with managing your investments, trust Greenway Financial Advisors.
Contact us today to ensure you’re making the most of your investments and minimising your tax burden. Book your free initial meeting or call us now to get started!
Talk to an adviser about your investments
We’ll look at how your savings and investments are taxed and whether there’s a more efficient way to hold them. Call 01 853 2727 or book a free initial meeting.
FAQ
What taxes do you pay on stocks?
When you sell stocks at a profit, you pay capital gains tax. If you sell at loss you can use the loss to reduce future capital gains.
Are dividends taxable?
Yes, dividends are taxable. There is Dividend Withholding Tax, Income Tax, PRSI & USC.
How is interest income taxed?
Interest income from savings accounts normally have Deposit Interest Retention Tax applied on the interest generated.
What is the capital gains tax rate in Ireland?
The Capital Gains Tax rate in Ireland is 31% for disposals on or after 7 October 2026. For example, on a €1,000 gain above your €1,270 annual exemption, you would owe €310.
How do tax treaties benefit investors?
Tax treaties between countries can reduce or eliminate double taxation. However it can be very complicated. Also ensure you seek professional advice before dealing with investments in other countries.
General information for the 2026 tax year. Not personal advice. Sources: Revenue (Capital Gains Tax, Deposit Interest Retention Tax and exit tax pages). The 35% exit tax rate from 1 January 2027 was announced in Budget 2027 and is subject to the Finance Bill.