Tax-Advantaged Savings and Investment Accounts in Ireland

Ireland offers a number of tax-advantaged savings and investment accounts to promote specific saving and investment behaviors among its citizens. Here are some of the main tax-advantaged vehicles available:

Savings and Investment Accounts

Personal Retirement Savings Accounts (PRSAs):

  • PRSAs are a type of personal pension scheme that anyone (employed, self-employed, or unemployed) can use to save for retirement.
  • Contributions can get relief from personal income tax at the individual’s marginal rate, up to certain age-related limits.
  • Investment income and gains accumulate tax-free within the PRSA.

Occupational Pension Schemes:

  • These are pension schemes set up by employers to provide retirement and other benefits for employees.
  • Similar to PRSAs, contributions benefit from income tax relief, and investment returns within the scheme are tax-free.

Special Savings Incentive Accounts (SSIAs):

  • SSIAs were government-supported savings accounts that operated between 2001 and 2007. For every €4 saved, the government added €1.
  • Although new contributions are no longer permitted, the tax-free nature of the returns continues to apply for existing SSIAs.

Individual Savings Accounts (ISAs):

Ireland doesn’t have an ISA scheme similar to the UK, but it does offer Deposit Interest Retention Tax (DIRT)-free savings schemes to certain sections of the population, such as first-time buyers saving for a home.

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