Ireland Excludes Crypto From New Tax-Advantaged Savings Scheme
Ireland's government has unveiled a new national savings and investment scheme aimed at shifting approximately $203 billion currently sitting in household bank deposits into more productive investment vehicles. The scheme will provide tax-advantaged accounts to every Irish adult, allowing them to hold traditional assets such as shares, bonds, funds, exchange-traded funds (ETFs), and insurance-based products.
The Tánaiste and Minister for Finance Simon Harris stated that cryptocurrencies, derivatives, and interest-bearing cash are not eligible assets for the scheme. This decision comes despite research by the Central Bank of Ireland indicating that around 10% of adults in the country hold crypto assets, predominantly young men with an average holding of €2,266.
The government aims to reduce households' reliance on bank deposits and encourage investment in more productive assets. Harris emphasized that the new accounts will not be subject to the 'deemed disposal' rule, which automatically treats certain investment funds as sold every eight years and taxes them at 38%. The government plans to review this rule more broadly, potentially eliminating it entirely.
The scheme is expected to become available next year, with details on tax-free thresholds and rates to be announced on Budget day, October 6. The accounts will have no minimum required contribution or lock-in period, but a maximum annual contribution cap will apply.