Fine Gael MEP Regina Doherty has urged the government to use Budget 2026 to reduce the harsh tax on Exchange Traded Funds (ETFs) and introduce tax incentives that will encourage more Irish savers to become investors.
“Right now, families that try to invest in their future are being punished by the most unfair tax in Europe,” Doherty said. “If you put money into an ETF, a simple, low-cost fund that spreads your risk across shares or bonds, you get hit with a massive 41% tax bill. On top of that, every eight years you’re forced to pay tax even if you haven’t sold. It’s absurd and it discourages families from doing the right thing.”
Doherty noted “across Ireland, billions are sitting in deposit accounts earning next to nothing. Families across Europe hold more than €10 trillion in bank deposits. While safe, those savings often deliver very poor returns, especially when inflation is high. At the same time, Europe needs up to €800 billion in new investment every year by 2030 to fund the green and digital transitions, innovation, and security.”
“The Government talks a lot about competitiveness. But competitiveness isn’t just about corporation tax or multinationals,” Doherty said. “It’s about whether ordinary families can invest for college fees, their first home, or retirement without being punished by unfair rules.”
The European Union is working towards a new Savings and Investments Union (SIU) to make it easier for families to grow their money through investment. “Brussels is moving forward,” Doherty said. “Ireland is holding its own people back. Budget 2026 must change that.”
“This isn’t complicated,” Doherty concluded. “If we want Irish families to build wealth, we need to stop punishing them for trying. Budget 2026 is the Government’s chance to finally get this right.”