ETF essentials · 2 minute read
How would ETFs be taxed inside an IIA?
Proposed rules — checked 29 October 2026. These rules are not yet in operation. The planned start is 1 July 2027, subject to legislation and commencement.
The short answer
For eligible investments inside an IIA, the proposed account tax would replace the usual Irish investor-level investment taxes, including eight-year deemed disposal. An annual tax of 1% would apply to the daily average account value above €50,000. The provider would normally calculate and pay it on your behalf.
Why it matters
The calculation is based on the account’s value, not its profit. Tax could therefore be due in a year when your investments fall in value. Account fees and ETF charges are separate and can apply even when no account tax is due.
The proposal does not change the treatment of ETFs held in an ordinary account. Do not assume existing holdings could move into an IIA without a sale or tax consequences.
A simple example
If the daily average account value for a full year were €60,000, the amount above the threshold would be €10,000. At 1%, the account tax would be €100, before fees.
The €50,000 tax threshold is not an amount you could contribute immediately: the proposed annual contribution limit is €12,000.
What to check
- Are you reading the final rules or a proposal?
- How will the provider fund any tax payment?
- What charges apply in addition to tax?
- What happens to any holdings you already own outside the account?
Key term explained
Daily average account value: a measure using the account’s values across the year, rather than just its balance on the last day.
Start with what the IIA is. For holdings outside it, read ETF tax in Ireland and eight-year deemed disposal.