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 was due to be introduced in October 2025 which has now been delayed to 01 January 2026, 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.