Why is the Government introducing PIAs?
The aim is to encourage more people to use investment products, give them more choice in how they manage savings and investments and simplify the tax administration associated with investing.
When will PIAs be available?
In Budget 2027, the Government announced that PIAs will be available from 1 July 2027, subject to the supporting legislation being enacted through the Finance Bill.
Who will be eligible?
PIAs will be available to Irish tax-resident individuals aged 18 or over who hold a Personal Public Service Number (PPSN). Each eligible individual will only be allowed to hold one PIA.
How much can be invested?
You will be able to invest a maximum amount of €12,000 per year. You can invest by regular contributions and it’s understood that lump sums will also be allowed. However, more information about this and how often contributions can be made is yet to be announced.
What is the tax-free amount?
PIAs will have a tax-free threshold of €50,000. A flat annual tax rate of 1% will apply to the portion of the PIA value above that threshold. For example, if a PIA were to be valued at €10,000 above this threshold (€60,000), the tax payable for that year would only be €100. The provider will calculate, report and pay any tax due to Revenue on your behalf. It is expected that the final legislation will set out the detailed rules.