Irish investing · Fees explained
The Irish Investment Account: why fees will matter
How account charges and ETF fees could affect your investment over five years.
The proposed Irish Investment Account could make investing easier to manage. But when providers launch their accounts, investors will need to look closely at what they charge.
The account fee and the cost of the investments held inside it can both reduce your returns. A low-cost ETF does not necessarily mean a low-cost account.
The IIA is planned to become available from 1 July 2027, subject to legislation. The available investments and provider charges will vary, making cost comparisons an important part of choosing an account. Revenue
Two layers of cost
For someone holding ETFs in an IIA, two charges to examine are:
- The account fee: what the provider charges for operating or managing the account.
- The ETF’s annual charge: often called the total expense ratio, or TER, which is deducted within the fund.
These may apply alongside dealing fees, currency-conversion charges, advice fees and the spread between buying and selling prices. Check what each provider includes in its headline price before adding charges together.
What could that mean in euros?
Consider a hypothetical €10,000 investment held for five years.
To isolate the effect of fees, assume no investment growth or losses, no further contributions and unchanged charges. The account fee and TER are added together and deducted annually from the remaining balance.
The figures below show the cumulative amount deducted over five years.
| Annual account fee | ETF TER: 0.03% | ETF TER: 0.25% | ETF TER: 0.50% |
|---|---|---|---|
| 0.25% | €139 | €248 | €369 |
| 0.50% | €262 | €369 | €490 |
| 1.00% | €504 | €610 | €728 |
Illustrative fee scenarios, not quoted IIA provider prices. Excludes tax, trading costs, currency conversion and other charges. Actual charging methods may differ.
At the lowest combination, the annual charge is 0.28%, leaving approximately €9,861 after five years.
At the highest, the annual charge is 1.50%, leaving approximately €9,272.
That is a €589 difference, without any market movement.
0.28% combined annual charge · €9,861 remaining
1.50% combined annual charge · €9,272 remaining
Common scale: €0–€800 in fees. Hypothetical scenarios, not provider prices. Assumes no growth or losses, no additional contributions and unchanged charges deducted annually. Excludes tax, trading costs, currency conversion and other charges. Figures rounded to the nearest euro.
The account fee deserves as much attention as the ETF fee
Investors often compare ETFs closely on their annual charges. The provider’s fee can make a larger difference.
In this example, keeping the ETF’s TER at 0.03% while increasing the account fee from 0.25% to 1% raises five-year costs from €139 to €504.
The ETF has stayed exactly the same. The account has become more expensive.
A higher charge may include investment advice, portfolio management or other services. The useful question is what you receive for that extra cost—and whether you need it.
Tax benefits do not remove fees
Under the proposed IIA framework, a €50,000 tax-free threshold would apply, with an annual account tax of 1% on the average value above it. That tax is separate from commercial provider and investment charges. KPMG
An account can therefore have no IIA tax liability and still incur ongoing fees.
Nor does a tax advantage automatically make every account good value. The benefit to the investor depends on the combination of tax treatment, charges, investment selection and service.
What happens if investments grow?
Our example assumes no growth to keep the comparison clear.
If the investment rises in value, percentage-based charges generally increase in euro terms. Money deducted in fees also loses the opportunity to earn future returns.
Conversely, if the investment falls, percentage-based fees may fall in euros—but they still reduce the remaining balance. Fees can apply whether markets rise or fall.
Five questions to ask a provider
Before choosing an IIA, ask:
- What is the account charge, and what services does it include?
- Are ETF charges additional to the advertised fee?
- Are there dealing, currency-conversion or minimum account charges?
- Are advice, withdrawals or transfers charged separately?
- What would the total cost be in euros for my expected balance and investing pattern?
Ask for a worked example using the amount you expect to invest. A percentage is easier to assess when you can see what it means for your money.
The IIA could make investing more accessible. Comparing the complete cost will help investors retain more of the benefit.
Figures rounded to the nearest euro. Calculation: €10,000 × [1 − (1 − account fee − TER)⁵]. IIA information checked 29 October 2026; proposals remain subject to final legislation. General education, not personal investment or tax advice. Capital at risk.