Ireland excludes crypto from new state-backed investment scheme

The Irish government has announced that crypto assets and derivatives will be excluded from a new state-backed retail investment scheme. The initiative, unveiled by Deputy Prime Minister and Minister for Finance Simon Harris and Minister of State Robert Troy, aims to encourage Irish households to move funds from low-interest cash deposits into traditional capital markets.

Currently, Irish households hold approximately $197 billion in bank deposits, with cash accounting for 38% of financial assets, significantly higher than the EU average of 30%. The proposed scheme, modeled partly on Sweden’s tax-advantaged system, will allow tax residents aged 18 and older to hold eligible investments such as listed shares, corporate bonds, and exchange-traded funds (ETFs) under a simplified tax structure.

The scheme is intended to replace the standard 33% capital gains tax and 41% fund exit tax with a flat annual levy above a tax-free threshold. It will also waive the “deemed disposal” rule for assets held within the account. Specific details regarding thresholds, rates, and annual contribution limits are expected to be released alongside the national budget on October 6, with accounts scheduled to launch in 2027.