The Irish Government has launched a Public Consultation (on July 21st) on the ‘Ireland for Finance’ Strategy, closing on September 19th 2025. While there is not a specific request in the Consultation Document questionnaire regarding taxation could you suggest aspects of taxation issues affecting the International Financial Services (IFS) sector, or particular segments (e.g. funds or aircraft leasing) that your firm might consider as part of its overall response to the Public Consultation?
Contributor: Angela Fleming, Partner & Head of Financial Services Tax, BDO
On 21 July, Minister of Finance Paschal Donohoe and Minister of State for Financial Services, Credit Unions and Insurance, Robert Troy published a public consultation paper inviting views to inform development of a new Ireland for Finance strategy.
Ireland for Finance is a whole-of-government strategy for the development of the international financial services sector. The strategy is delivered through public-private sector collaboration, with implementation overseen by the Minister of State for Financial Services, Credit Unions and Insurance.
The current iteration of Ireland for Finance expires in 2026, and in line with commitments made in the Programme for Government, Department of Finance officials are developing a new strategy for the period 2026-2030.
The public consultation now launched seeks to identify areas of opportunity and barriers to competitiveness and growth. The objective is to develop a comprehensive strategy for the sector which includes targeted, evidence-based and agile policy measures designed to enhance Ireland’s international competitiveness and foster sustainable growth.
While there is not a specific request in the Consultation Document questionnaire regarding taxation, the consultation paper recognises that a strong and effective operating environment for IFS firms is an important aspect of Ireland’s competitiveness and appeal as a destination of choice. The operating environment encompasses a wide range of policy, regulatory and business conditions, and includes elements that are relevant directly to the financial services sector, such as the financial regulatory and supervising regime and industry levies, and also include elements related to the ease of doing businesses across multiple sectors. Ireland’s tax regime, for both businesses and individuals, is an important element of the operating environment, and has been a key part of the toolkit used to establish and maintain Ireland’s competitiveness internationally.
Therefore, in developing the Ireland for Finance Strategy 2026-2030 there are a number of taxation measures that the Department of Finance may consider incorporating as part of the strategy. Such measures may be either specific to businesses operating in the IFS sector, as well as general measures impacting the overall ease of doing business in Ireland.
Readers will be aware of the Fund Sector 2030 report which contained a number of key tax recommendations. Those relating to making investing more attractive for retail investors in Ireland I have discussed previously in my article in last month’s Irish Tax Monitor [add link]. In addition, the report recommended consideration of how the participation exemption could support the use of ILPs and a review of the scope of DWT exemption (in the context of ILPs also).
Section 7 of the consultation paper focuses on growth of indigenous start-up, scaling and innovative firms, and reiterates the Government’s commitment to making Ireland the most supportive environment for indigenous businesses and the most attractive location for start-ups and foreign investment. Tax policy plays an important role in supporting entrepreneurship, in particular ensuring that successful entrepreneurship is rewarded with favourable tax treatment recognising the important contribution innovation makes to the economy and society as a whole.
Furthermore, for Ireland to remain competitive and attract foreign direct investment, a change to the personal tax systems needs to be a key area for change. A change to the personal tax system should not only attract foreign direct investment into Ireland but it should also be an attractive incentive to retain highly talented people in Ireland. Such changes should include an increase to the entry point to the marginal income tax rate, cap the amount of income subject to PRSI, simplify the Key Employee Engagement Programme and the Employment Investment Incentive Scheme and changes to the Special Assignee Relief Programme to make it more competitive.
Ireland’s membership of the EU is one of its key strengths and has played a vital role in contributing to the success of Ireland’s International Financial Services sector, particularly post-Brexit. However, it is important that Ireland maintains its tax sovereignty and doesn’t allow its competitiveness to be diluted by EU tax directives and a drive towards tax consolidation.
Ireland’s extensive Double Taxation Agreement (DTA) network is a vital element in the overall tax package. It is welcome to note in the consultation paper the Department of Finance continues to assess, update and enhance our network of DTAs.
The public consultation period will run until 19 September 2025. Stakeholders are invited to submit their views on how Ireland can maintain and grow its position as a leading global hub for specialist international financial services.
Following the consultation, Department of Finance officials expect to present a draft report to the Minister of State in early 2026, with a view to the Minister for Finance bringing this to Government to approve the publication of the new revised strategy by mid-2026.