Dáil Éireann Debate, Tuesday - 3 March 2026
344. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding the review of the ETF tax regime, as set out in the most recent Budget; and if he will make a statement on the matter. [16435/26]
View answerAn Exchange Traded Fund (ETF) is an investment fund whose units are held in a recognised clearing system and are traded on a regulated stock exchange. There is no separate taxation regime for ETFs. As collective investment funds, they generally come within the regimes set out in the Taxes Consolidation Act 1997 for such funds. The domicile of the ETF will generally determine the applicable fund regime, specifically whether the ETF falls within the domestic fund regime or the offshore fund regime. For most ETFs, investors are required to calculate, return and pay the income tax on the income and gains arising from their investment in the fund on a self-assessed basis.
Supporting and encouraging retail investment is a Government priority. You will be aware that Budget 2026 included a reduction in the taxation rate that applies to Irish and equivalent offshore funds, and Irish and certain foreign life assurance products, from 41% to 38%, which applies to investments in ETFs that are taxed under these regimes. This rate change took effect from 1 January 2026.
In addition, Budget 2026 included a commitment to publish a new approach to simplify and adapt the current taxation framework for retail investment while retaining necessary and important anti-avoidance protections in a proportionate manner. I expect to publish this in the coming months.
The work underway includes consideration of the Funds Sector 2030 Report, including the issue of deemed disposal and the taxation of ETFs, as well as the European Commission’s recommendation on Savings and Investment Accounts.
