- 1 Clear expensive debt And build an emergency fund.
- 2 Your pension At least enough to get your employer’s full contribution.
- 3 More into your pension Especially if you pay 40% tax.
- 4 ETFs, funds or shares For goals before retirement, knowing how each is taxed.
Pensions
You get tax relief on pension contributions at your highest rate of income tax, up to a share of your earnings that rises with age:
| Age | Most you can get relief on |
|---|---|
| Under 30 | 15% of earnings |
| 30 to 39 | 20% |
| 40 to 49 | 25% |
| 50 to 54 | 30% |
| 55 to 59 | 35% |
| 60 and over | 40% |
Earnings over €115,000 don’t count. The growth is tax-free, and you can usually take 25% as a lump sum when you retire, the first €200,000 of it tax-free. If you have no workplace pension, you may now be auto-enrolled, or you can open a PRSA (Personal Retirement Savings Account) yourself.
ETFs and funds
Irish and EU-domiciled ETFs and funds are taxed under exit tax:
- 38% on gains and income in 2026. Budget 2027 announced a cut to 35% from 1 January 2027.
- Deemed disposal: every 8 years you pay tax on the gain as if you’d sold, even if you didn’t.
- There’s no annual exemption, and losses can’t be set against gains.
- It’s the only tax on these gains: PRSI and USC don’t apply, even when you pay it through your own tax return.
- ETF or fund Exit tax at 35%, with deemed disposals in years 8 and 16
- You keep €22,487 Tax €6,724
- ETF, if tax were only charged on sale The same rate, with no deemed disposal (for comparison)
- You keep €24,346 Tax €7,725
- Shares held directly Capital gains tax at 33% on sale, after the €1,270 exemption
- You keep €25,207 Tax €6,864
Deemed disposal costs €1,859 here, even though less tax is paid in total
Illustrative: the same growth every year, no distributions and no fees. Deemed disposal takes tax early, so less money is left to grow.
Our exit tax calculator shows the tax on your ETF over time, deemed disposals included, and how it compares with shares.
Budget 2027 also announced a new Savings and Investment Account, which won’t have deemed disposal. Details are expected in the Finance Bill.
Shares
Gains on individual shares (and investment trusts) pay capital gains tax at 33%, after the first €1,270 each year. Losses can be set against gains. Dividends are taxed as income, with USC and PRSI. See capital gains tax explained.
Which order
- Pay off expensive debt and build an emergency fund.
- Your pension, at least enough to get your employer’s full contribution, then more if you pay 40% tax.
- ETFs, funds or shares for goals before retirement, knowing how each is taxed.
The pension calculator shows what your contributions could grow to.