Budget 2026 Analysis
Earlier this month, the Irish government unveiled Budget 2026, and after a few years of "giveaway" budgets focused on cost-of-living crises, this one signals a distinct and strategic shift. The theme for 2026 is clear: supply.
The government has pivoted its focus to tackling Ireland's most fundamental challenges: housing availability and business competitiveness. For anyone considering a move to or investment in Ireland, this was a critical budget. It offers a clear picture of the country's priorities.
Here’s the GoldGro analysis of the key measures that matter most to our clients.
1. The All-Out Push for Housing Supply
The property market was the undisputed centerpiece of Budget 2026. The government has clearly decided that the only way to address the housing crisis is to make it much more attractive to build.
VAT Cut for Apartments: The headline-grabber was a major reduction in the VAT rate on new-build apartments from 13.5% down to 9%. This is a significant move designed to make thousands of stalled apartment projects in Dublin and other cities viable again.
Support for Landlords and Renters: The Rent Tax Credit has been extended to 2028, providing continued (though modest) relief for tenants. More strategically, tax reliefs for small landlords—including those who retrofit their properties—have been extended. This is a clear attempt to stop landlords from leaving the market and to stabilise the rental supply.
Tackling Dereliction: A new Derelict Property Tax will be introduced, replacing the old levy. This new tax will be more aggressive and collected centrally by Revenue, putting serious pressure on owners to either sell or renovate empty properties.
What This Means for You: For those looking to move, the rental market will hopefully see some much-needed stability. For buyers, the VAT cut should, in the medium term, significantly increase the supply of new, modern apartments to purchase, particularly in the cities. For investors, the new tax exemptions for building apartments and renting within the Cost Rental Scheme are a major development.
2. A Budget for Business and Entrepreneurs
This was a very pro-business budget, aimed at ensuring Ireland remains a competitive place to work and invest.
Boost for Entrepreneurs: The Revised Entrepreneur Relief (a form of Capital Gains Tax relief) has been enhanced, increasing the lifetime limit from €1 million to €1.5 million. This makes Ireland even more attractive for entrepreneurs looking to start and eventually sell a business here.
R&D Tax Credit Increased: The Research & Development (R&D) Tax Credit is rising from 30% to 35%, a significant boost that keeps Ireland at the forefront of global innovation and highly attractive for tech and pharmaceutical companies.
Support for Key Sectors: The Special Assignee Relief Programme (SARP), which is a key incentive for high-income professionals relocating to Ireland, has been extended for five years. The hospitality sector will also see its VAT rate cut back to 9% from July 2026, supporting a vital part of the Irish economy and lifestyle.
What This Means for You: These measures signal stability and a strong government commitment to supporting a high-value economy. The extension of SARP is fantastic news for senior executives planning a move, while the support for entrepreneurs and R&D reinforces that Ireland is a world-class place to do business.
3. Personal Finance & Cost of Living
Unlike previous years, this budget did not include wide-ranging personal income tax cuts. The focus was on targeted relief and supporting those on the lowest incomes.
No Change to Income Tax Bands: For most PAYE workers, there will be no major change in take-home pay, as the high-rate tax bands were not indexed to inflation.
Targeted USC Tweak: The government made a small adjustment to the 2% USC (Universal Social Charge) band. This is a minor change, designed primarily to ensure that full-time workers on the new increased minimum wage (rising to €14.15 per hour) do not pay the highest rates of tax.
Support for Families: There were significant increases in weekly social welfare payments, including child support payments, and a €10 increase for pensioners, carers, and people with disabilities.
What This Means for You: While there isn't a major tax cut in your pocket this year, the budget prioritised social stability and supporting the wider economy. The continued low VAT rate on gas and electricity until 2030 also provides certainty against energy price shocks.
Our Final Verdict
Budget 2026 is a "builder's budget." It sacrifices short-term personal tax gains for a long-term strategy focused on solving the housing crisis and cementing Ireland's reputation as a premier location for enterprise.
For those planning to relocate, this budget signals a country that is taking its core challenges seriously and investing heavily in a stable, productive future.
Navigating the implications of these tax changes—especially for property investment and business relocation—requires expert guidance. If you're wondering how Budget 2026 affects your personal plans for a move to Ireland, contact the GoldGro team today for a clear and confidential consultation.