Dáil Éireann Debate, Thursday - 18 December 2025
183. Deputy Sean Fleming asked the Tánaiste and Minister for Finance for if the new Ireland for Finance strategy will address the issue of deemed disposal; and if he will make a statement on the matter. [72575/25]
Amharc ar fhreagraIreland for Finance is a whole-of-government strategy for the development of the international financial services sector in Ireland. In line with Programme for Government commitments, the Department of Finance has commenced work on a new Ireland for Finance Strategy to be published in H1 2026.
Significant engagement and consultation has and will continue to take place to inform this work, including a public consultation held earlier this year which received 57 written submissions, input from the standing quarterly Ireland for Finance Joint Committee forum, and a wide range of bilateral, national and international stakeholder engagements. While the strategy is still under development, how to best support enhanced retail investment activity in Ireland, including the matter of deemed disposal, is a topic that has been raised during these engagements.
The development of a strong international financial services sector has been a key part of Ireland’s industrial policy since the 1980s, and the new whole-of government Ireland for Finance strategy will be another integral part of this.
At the end of 2024, the state enterprise agencies, Enterprise Ireland and IDA Ireland, estimated that around 60,100 people are now in direct employment in the international financial services sector.
I am committed to supporting Irish investors in leveraging the benefits of the sector. I am aware of the position of a number of stakeholders in relation to the taxation of retail investment and the application of deemed disposal in particular. It is important to ensure that any changes in this area achieve the balance between the supporting retail investment and maintaining appropriate anti-avoidance protections.
In terms of recent developments, a reduction from 41% to 38% in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products was announced in Budget 2026. This is an important first step.
I am conscious of the need to ensure that retail investment is encouraged. Work is continuing on the development of the roadmap for the taxation of retail investment, as announced in budget 2026. The roadmap is to be published early next year and will set out an approach to simplify and adapt the tax framework to further support retail investment while retaining necessary and important anti-avoidance protections in a proportionate manner. This roadmap will facilitate due consideration of the Funds Sector 2030 Report and take into account the European Commission’s recommendation on Savings and Investment Accounts.
Given the composition of the financial services sector in Ireland and its role as a gateway to Europe for global firms, Ireland has a significant role to play in achieving both EU and Irish policy goals, including in the Savings and Investments Union. This will include activity progressed under the new Ireland for Finance strategy when completed.
I am committed to taking the necessary action to support retail investment in Ireland and believe that further progress can be made to address some of the existing obstacles to greater retail investment in the coming years within the usual Budget and Finance Bill processes.
