Budget 2026 Highlights

Budget Highlights 2026

October 7, 2025

Budget 2026 – Top 10 Tax Highlights

The Minister for Finance, Paschal Donohue has announced Budget 2026 this afternoon, 7 October 2025. The total Budget package is €9.4 billion of which €1.3 billion has been allocated to taxation measures. The Top 10 tax highlights are as follows:

1. The Revised Entrepreneur Relief lifetime limit which reduces the rate of Capital Gains Tax to 10% will be increased from €1m to €1.5m for disposals made on or after 1 January 2026.  This will result in a tax saving of €115,000 for those who can avail of the relief.

2. The Minister announced a reduction in the rate of taxation that will apply to investments in Irish domiciled funds, life insurance policies and certain offshore funds from 41% to 38%.

3. Revenue will rollout a new digital e-invoicing system for business to business supplies.  Further details will be published by Revenue on 8 October 2025.

4. The 9% VAT rate (down from 13.5%) will apply to the sale of new completed apartments from 8 October 2025 to 31 December 2030. 

5. The 9% VAT rate will apply to businesses in food and catering and hairdressing services from 1 July 2026 to 31 December 2030.  The reduced rate does not apply to the provision of accommodation.

6. The Residential Development Stamp Duty Refund Scheme has been extended to 31 December 2030.  A full refund can now be applied for at commencement of the first phase of multi-unit developments.  Up until now work on the site must commence within 30 months and be completed within 30 months, this has now been extended to 36 months for both in respect of large scale residential developments.

7. A new opportunity for Residential Zoned Land Tax (“RZLT”) owners to request a change in zoning of land and an exemption from RZLT is being introduced to reflect the genuine economic activity carried out on the land.

8. An enhanced Corporation Tax deduction is being introduced for qualifying apartment construction costs for new build developments and conversion projects.  The measure will allow an enhanced deduction of 125% of qualifying costs, up to a maximum additional deduction of €50,000 per apartment unit.  This will be available for projects comprising of 10 or more apartments.  It will apply where commencement notice is submitted on or after 8 October 2025 or on or before 31 December 2030.

9. A review of the taxation and deductibility of interest is to be carried out commencing in November 2025.

10. The Research and Development tax credit which is currently 30% will increase to 35%.

The detail in the Budget and other amendments to tax legislation will be contained in the Finance Bill 2025 which is due to be published next week. However, please note some legislation will be passed tonight by Financial Resolutions.

This summary is intended as a general guide. No action should be taken without obtaining professional taxation advice