What is the DIRT rate in Ireland for 2026?

The Deposit Interest Retention Tax (DIRT) rate in Ireland for 2026 is 33% on interest earned from savings accounts, deposit accounts, and certain other interest-bearing investments. DIRT is deducted automatically by your bank before the interest is paid to you — there's nothing you need to do. The first €2,000 of interest (for a single person) may be exempt from USC, but DIRT still applies.

What is the ETF exit tax rate in Ireland?

ETF exit tax in Ireland is 41% on any gain when you sell or dispose of your ETF units. This applies to both UCITS and non-UCITS ETFs. Unlike the 33% Capital Gains Tax rate for shares, ETFs are taxed at the higher 41% rate. Additionally, losses on ETFs cannot be offset against other capital gains, making ETFs less tax-efficient than direct share investing for Irish residents.

What is the 8-year deemed disposal rule for ETFs in Ireland?

The 8-year deemed disposal rule requires Irish residents holding offshore ETFs to pay exit tax every 8 years on the accumulated gain, even if they haven't sold the ETF. This means you pay tax on "paper gains" every 8 years, and when you eventually sell, you get credit for the tax already paid. This rule makes ETFs significantly less tax-efficient in Ireland than in most other countries.

Can I avoid deemed disposal by switching to Irish-domiciled ETFs?

No — the 8-year deemed disposal rule applies to all offshore ETFs held by Irish residents, regardless of where the ETF is domiciled. The rule is based on the investor's residence, not the fund's domicile. However, certain investment funds that are classified as "investment undertakings" may be taxed differently. Always check with a tax advisor for your specific situation.

Is DIRT charged on all savings accounts?

DIRT applies to most deposit accounts including regular savings accounts, demand deposit accounts, and term deposits. It does NOT apply to: (1) savings held in your first €20,000 of SSIA-type products, (2) interest from certain EU government bonds, (3) savings held by charities or pension funds, (4) interest on Special Savings Accounts. The DIRT exemption for first-time savers under certain thresholds no longer applies.

Investment Tax Guide · 2026

DIRT & ETF Tax Ireland 2026: Deposit Interest, Deemed Disposal & Exit Tax Explained

Ireland taxes investment income differently than most countries. Whether you have money in a savings account (DIRT at 33%) or invest in ETFs (exit tax at 41% with 8-year deemed disposal), understanding these rules is essential. Use our DIRT Calculator or ETF Tax Calculator for your exact figures.

DIRT — Deposit Interest Retention Tax

How DIRT Works

• DIRT at 33% deducted automatically by your bank
• Applies to interest on savings, deposit, and current accounts
• No further tax return needed — tax is settled at source
• First ~€2,000 interest exempt from USC but NOT from DIRT

Example: €25,000 Savings

Annual interest at 2%: €500

DIRT at 33%: -€165

Net interest: €335

ETF Tax — Exit Tax & 8-Year Deemed Disposal

ETFs in Ireland face a unique tax regime that makes them significantly less tax-efficient than direct share investing.

Exit Tax (41%)

• 41% on any gain when you sell
• Higher than CGT rate of 33%
• Losses cannot be offset against gains
• No annual CGT exemption applies

8-Year Deemed Disposal

• Tax on unrealised gains every 8 years
• Must pay 41% even if you haven't sold
• Credit for tax paid when you eventually sell
• Creates a cash-flow burden — you pay tax before you have the cash

💡 Example: Invest €35,000 in an ETF. After 8 years it's worth €50,000 (gain €15k). You owe €6,150 in exit tax (41% × €15k) even if you keep the ETF. Every 8 years, you pay tax again on the next gain.

DIRT Exemptions & What's NOT Taxed

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Social Welfare Payments

All DSP payments including State Pension are exempt from DIRT.

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Pension Funds

Pension scheme investment growth within an approved fund is exempt from DIRT and exit tax during accumulation.

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Certain EU Government Bonds

Interest from certain EU government securities may be exempt from DIRT under EU directives.

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Charities & Approved Bodies

Registered charities and approved retirement funds do not pay DIRT on their savings interest.

Frequently Asked Questions

Can I claim back DIRT if I have no taxable income?

If your total income is below the tax-free threshold (€13,000 for USC purposes), you may be able to claim a refund of DIRT paid, as the DIRT is treated as a tax overpayment. This is most relevant for non-taxpaying individuals like students or stay-at-home parents with savings. You can claim through myAccount by filing a Form 12.

Are Irish-domiciled ETFs taxed differently from offshore ETFs?

No — all ETFs held by Irish residents are subject to the same deemed disposal and exit tax rules regardless of domicile. However, certain investment funds classified as "investment undertakings" (common contractual funds, Irish ETFs with IFSRA authorisation) may have different treatment. Always check with Revenue guidance for your specific fund type.

How do I report deemed disposal on my tax return?

You report the deemed disposal gain on your annual Form 11 (self-employed) or through myAccount (PAYE employees). The gain is calculated as the increase in value over the 8-year period. Losses carried forward from previous disposals can be offset. Revenue provides detailed guidance in the ETF section of the tax return.

Can I avoid deemed disposal by selling my ETF before 8 years?

Yes — selling within the 8-year window triggers exit tax on the actual gain (not a deemed gain). However, if you buy back the same ETF, the 8-year clock resets. Frequent trading may trigger different tax treatment. Some investors use a "bed and breakfast" strategy, but Revenue anti-avoidance rules may apply.

Is it better to invest in shares or ETFs in Ireland?

From a tax perspective, direct share investing is generally more favourable in Ireland. Shares are subject to Capital Gains Tax at 33% (vs 41% for ETFs), qualify for the €1,270 annual CGT exemption, and losses can be offset against gains. There is no deemed disposal for shares. However, ETFs offer diversification benefits that individual shares cannot match.