Deirdre Barnicle, Partner, McCann FitzGerald: It is positive that the improvement of investment opportunities for Irish taxpayers is on the Minister for Finance’s radar and the experience of countries who have introduced SIAs has shown what an effective tool they can be.

One of the most important characteristics of a well-designed SIA is tax treatment that is investor friendly. Under the Canadian TFSA, any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to a TFSA, and any interest or money borrowed to contribute to a TFSA, are not tax deductible.

This appears to be a sensible approach to encourage first-time investors to participate. Other forms of tax incentive could include a reduced tax rate on income and capital gains, a deferral of tax until funds are withdrawn, or applying a nominal tax on assets held in the account (as is the case for the Swedish Investeringssparkonto (ISK)). From an administrative perspective, new tax treatments usually require more domestic legislation and as a result, they increase complexity. Consequently, it appears that the most straightforward option i.e. blanket exemptions from income tax and CGT, while removing any possibility for tax deductibility, may be the most straightforward approach.

One feature that is often described as the most attractive feature of the Swedish ISK is the fact that the provider manages the tax reporting of the account; not only does this encourage greater participation on the part of individuals, but it also makes SIAs more appealing to tax authorities, who are assured of greater tax compliance. The same approach is taken in Finland, while in Norway, tax liable withdrawals and assets are pre-filled in individuals’ tax returns. Streamlined procedures to establish accounts would also lend to enhancing the design of an Irish SIA.

Although the use of ‘holding periods’ may facilitate favourable tax treatment based on models that already exist in Irish tax legislation, research has shown that participation rates generally and amongst those on lower and irregular incomes (who are less able to commit to saving) improves when there are no time restrictions on SIAs; thus, these limitations should also be avoided.

Finally, while from a consumer safety perspective, it may make sense to restrict access to investments in high-risk financial instruments like cryptocurrencies, it should be remembered that drafting narrow definitions of permitted investments could also pose problems as it risks increasing administrative complexity for providers and as a result, participation in the market could be discouraged.

Joe Walsh, Director, Financial Services Tax, Forvis Mazars: Ireland is preparing to roll out new state-backed Savings & Investment Accounts (SIAs), a move designed to push households beyond low-yield bank deposits and into long-term investing. The initiative aligns with the EU’s wider push to broaden retail investment participation through the Savings and Investment Union (SIU).

Why Change Is Needed — and Slow
Irish savers have long relied on bank deposits that barely keep pace with inflation. In 2025, banks paid an average of 0.25% interest while inflation sat around 2.7%, meaning the real value of savings was shrinking.
But shifting national habits won’t happen fast. The European Commission notes that limited financial literacy and complex investing processes remain major barriers for everyday savers. Experts warn the new scheme will be a long-term wealth-building tool, not a quick win.

Why Sweden’s ISK Model Matters
The government is expected to base the tax design on Sweden’s highly successful ISK investment account, which the EU cites as best practice. The model includes:
• A tax-free annual allowance
• A low, predictable tax rate on balances above that threshold which is deducted at source.
• The account provider (Bank or Broker) handles all the calculations and reporting.

This simplicity is key to encouraging first-time investors, especially compared with Ireland’s current 33% tax on capital gains and 38% on fund returns.

Why Children Should Be Included
Financial habits form early, and the EU emphasises literacy as a core life skill. Opening SIAs to children would give them a head start, longer investment horizons, and exposure to positive savings behaviour, helping create a more financially confident generation. The Commission also stresses the importance of expanding retail investor bases across Europe.

The Bottom Line
Ireland’s SIAs could be one of the most important financial reforms of the decade, modernising how households save and invest. But success will depend on simple, Swedish-style tax rules and early engagement, including giving children access. With accounts potentially opening as early as 2027, the journey toward a more investment-savvy Ireland is only just beginning.

This article appeared in the March 2026 edition of the Irish Tax Monitor.