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 the Taxes on personal income section and Other tax credits and incentives section for detail.
• The help to buy scheme was extended to the end of 2029.
• The rental tax credit has been increased to 1,000 euros (EUR) (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 two to five, with the first five gifts/benefits qualifying for relief where more than five are provided.
• A benefit-in-kind has been reintroduced for employer Personal Retirement Savings Account (PRSA) contributions exceeding 100% of remuneration.
• A phased increase in the lifetime limits for pensions 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 ten-year period, and the contributions for the first three 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 EUR 400,000, the Group B threshold has increased to EUR 40,000, and the Group C threshold has increased to EUR 20,000.