Ireland

Irish Finance Act 2024

Following the most recent Irish Finance Act (effective from 1 January 2025):

• There are increases to personal tax thresholds and credits. See table below for detail.

• The help to buy scheme was extended to the end of 2029.
• The rental tax credit has been increased to EUR 1,000 (20% of the qualifying payment up to EUR 1,000). This increase will be applied to 2024 as well as 2025.
• The small benefit exemption threshold has been increased to EUR 1,500. The number of qualifying benefits has been extended from 2 to 5, with the first five gifts/benefits qualifying for relief where more than 5 are provided.
• A BIK has been reintroduced for Employer PRSA contributions exceeding 100% of remuneration.
• A phased increase in the Lifetime Limits for pension has been introduced commencing from 2026.
• A new system of Mandatory pension provision is due to be introduced in October 2025, the new system will apply to certain categories of employees who are currently not a member of a pension scheme. The contribution levels are to be phased in over a 10 year period, the contributions for the first 3 years will be 1.5% employer, 1.5% employer and 0.5% government contribution. Employee contributions will not attract income tax relief. 
• The Capital Acquisitions Tax (CAT) thresholds have all been increased. The Group A threshold has increased to €400,000; the Group B threshold has increased to €40,000, and the Group C threshold has increased to €20,000.