Ireland Excludes Crypto From New State Investment Scheme

Ireland's government has introduced a new state-backed savings and investment scheme aimed at encouraging Irish households to shift billions of dollars from low-interest cash deposits into traditional capital markets.

The initiative, unveiled by Deputy Prime Minister Simon Harris, will allow tax residents aged 18 and older to hold eligible investments under a simplified tax structure. The proposed scheme is modeled in part on Sweden's Investeringssparkonto system and will replace Ireland's standard 33% capital gains tax rate with a flat annual levy above a tax-free threshold.

The initiative aims to address a long-standing pattern among Irish savers, who hold an estimated $197 billion in bank deposits, roughly 38% of household financial assets. This is well above the European Union average of 30%. Direct retail participation in listed equities and financial markets stands at just 2.3%, compared with the EU average of 7.5%.

The exclusion of high-risk financial products, including crypto assets and derivatives, from the scheme aligns with Ireland's increasingly restrictive stance toward digital currencies. The country is implementing stricter anti-money laundering directives and regulatory rules for registered crypto-asset service providers. These measures include enhanced identity checks and verification procedures for transfers involving self-hosted wallets.