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Ireland Investment Income Tax Guide 2026

Ireland taxes investment income through a variety of withholding and flat-rate regimes. Deposit interest is subject to DIRT at 33%, dividends from Irish companies incur 25% withholding tax, life assurance policies are subject to 41% exit tax, and ETFs are subject to the 8-year deemed disposal rule at 41%. All amounts in EUR.

For related guidance, see our Personal Income Tax Guide → and Capital Gains Guide →.

DIRT (Deposit Interest Retention Tax)

  • 33% withheld at source on interest from deposit accounts in Irish banks and building societies
  • Applies to most savings accounts, term deposits, and notice accounts
  • No further tax liability for standard-rate taxpayers — DIRT is a final liability
  • Higher-rate taxpayers may have an additional liability (difference between 33% and their marginal rate of 40% + USC + PRSI)
  • Exemptions available for certain individuals aged 65+ with low income

Dividend Withholding Tax (DWT)

  • 25% withheld at source on dividends paid by Irish-resident companies
  • Dividends from foreign companies are subject to income tax, USC, and PRSI at marginal rates
  • Foreign tax credits may be available for withholding tax paid abroad (subject to double-taxation treaties)
  • Irish resident individuals receive dividends net of DWT and may need to declare them on their tax return

Life Assurance Exit Tax

  • 41% exit tax on gains from life assurance policies and investment funds (unit-linked, with-profits, etc.)
  • The exit tax is applied on the gain when the policy matures, is fully/partially surrendered, or on death
  • No further income tax, USC, or PRSI is payable on gains subject to exit tax

ETF Deemed Disposal (8-Year Rule)

  • Irish-resident investors in non-UCITS ETFs (and certain UCITS ETFs for Irish tax purposes) are subject to a deemed disposal every 8 years
  • Exit tax of 41% applies on the deemed gain (calculated as if the ETF were sold and repurchased)
  • When the ETF is actually sold, the previous deemed disposal cost becomes the base cost to avoid double taxation
  • This rule does not apply to ETFs held in a pension or life assurance wrapper
  • Note: Certain UCITS ETFs may be treated as "relevant holdings" and also fall under the 8-year rule

Other Investment Income

  • Rental income: Taxed at marginal income tax rates (20%/40%) plus USC and PRSI. Mortgage interest and allowable expenses can be deducted
  • Foreign investment income: Declared on Form 11. Foreign tax credits available under DTA arrangements
  • Pension investment gains: Exempt from tax within the pension fund; taxed on withdrawal at marginal rates