Exit tax in Ireland: 38% now, 35% announced
Free guide · Budget 2027 rates · checked 10 Oct 2026 · Sources: Revenue, gov.ie · Estimate only, not financial or tax advice
Based on published Irish tax bands; not advice. Estimate based on published Revenue and DSP rates for the selected year. Covers employees, sole traders and common credits. Estimate only, not financial or tax advice. Check complex cases with Revenue.
Exit tax is the tax on gains from Irish funds, life assurance policies taken out since 2001, and similar funds in the EU, EEA or OECD, including many ETFs. For individuals the rate is 38% (since 1 January 2026).
Budget 2027 announced a cut to 35%, due in 2027; the start date will be set in the Finance Bill.
Deemed disposal (the 8-year rule) is unchanged.
Worked example: tax on a gain
You sell units in an Irish-domiciled fund or an EU ETF for a €10,000 gain. At 38% the exit tax is €3,800. Once the 35% rate is in force it would be €3,500, which is €300 less.
| Gain | Tax at 38% (now) | Tax at 35% (once in force) | Difference |
|---|---|---|---|
| €1,000 | €380 | €350 | €30 less |
| €5,000 | €1,900 | €1,750 | €150 less |
| €10,000 | €3,800 | €3,500 | €300 less |
| €25,000 | €9,500 | €8,750 | €750 less |
| €50,000 | €19,000 | €17,500 | €1,500 less |
Deemed disposal: the 8-year rule
Every 8 years after you buy, you are taxed as if you had sold, even if you haven't. Budget 2027 did not change this.
Example: you invest €20,000 and it is worth €30,000 on the 8th anniversary. The deemed gain is €10,000, so exit tax is €3,800 at 38%, or €3,500 once 35% is in force. Your cost for the next 8 years becomes €30,000, and tax paid on a deemed disposal is credited when you finally sell.
Funds outside Ireland can't deduct Irish exit tax for you, so for EU, EEA and OECD funds and ETFs you report and pay it yourself through your tax return (Form 11).
Who the cut covers
- Irish funds (ICAVs, investment companies and unit trusts): 38% → 35%.
- Life assurance policies with Irish life companies since 2001: 38% → 35%.
- Equivalent EU, EEA and OECD funds, including ETFs taxed under that regime: 38% → 35%.
- Certain foreign life assurance policies: 38% → 35%.
- Not covered: personal portfolio funds and policies (PPIU / PPLAP), and companies.
Shares and other assets taxed under capital gains tax are separate.
Sources
- Revenue eBrief 016/26: "Finance Act 2025 amendments which reduced the rate of tax for individuals from 41 percent to 38 percent. The reduced rate applies from 1 January 2026".
- Budget 2027 Tax Policy Changes, section 2.2 (page 5): the rates are "being reduced from 38% to 35%", listed in Table 1, "Tax measures for introduction in 2027". No start date is given.
- Parliamentary question, 11 Feb 2026 (Revenue's advice): "A deemed disposal occurs eight years following inception of a policy of life assurance or acquisition of a fund and then every eight years thereafter."
- Revenue Tax and Duty Manual Part 27-01a-02 (Investment Undertakings), section 4.4.5: "Exit tax already paid in connection with the ending of an 8-year period may be offset against exit tax due on a subsequent chargeable event."