There’s a clear focus on making investing simpler, more cost-effective, and more accessible to everyone, whether you’re a first-time investor or someone looking to diversify your portfolio. What’s really interesting, though, is the strong emphasis on ensuring that jobs and opportunities are spread across the country, with particular attention on rural regions that have often been left behind in previous economic booms. For a deeper understanding of the government's vision and framework for Ireland's economic growth, including detailed plans for the funds sector, see the full Funds Sector 2030 strategy available here.
Making investment easier for everyone
One of the standout proposals in this strategy is the removal of the 8-year deemed disposal rule. For those unfamiliar with it, this rule has forced investors in certain Irish funds, like UCITS and ETFs, to pay tax every eight years, even if they hadn’t sold the investment. This was a hassle, especially for long-term investors, as it triggered an unwanted tax bill just because of how long they held the asset.
By scrapping this rule, the government is making it far easier to hold investments for the long haul without worrying about a tax hit every eight years. Now, you can let your money grow and only pay tax when you sell the investment, giving more room for compounding returns to do their work. For retail investors—whether you’re saving or just looking to grow your wealth—this makes investing in Irish funds a lot more attractive.
Cutting costs with the removal of the Life Assurance levy
Another big change is the planned removal of the Life Assurance Levy. This levy has added extra costs to life assurance products, which are often used for long-term savings. With this levy gone, it’ll become more affordable to invest in these products, meaning better returns for the average person saving for retirement. It’s a win for anyone looking to build a secure financial future through these products without unnecessary costs eating into their returns.
Lowering costs for funds and focusing on green investments
There’s also a strong focus on reducing the costs associated with investing. The government is pushing for lower administrative fees on popular investment products like ETFs (Exchange-Traded Funds) and ICAVs (Irish Collective Asset-Management Vehicles). These are already favored by investors because they offer diversification at a low cost, but reducing fees even further will make them even more appealing. For those of us who prefer to keep investing simple, these low-cost options are an ideal way to let our money grow without being chipped away by high management fees.
And let’s not forget the focus on sustainable and green investment. Ireland is pushing hard towards its climate goals, and the government wants retail investors to be part of that journey. There’s likely to be tax incentives or grants tied to green bonds, renewable energy projects, and eco-friendly funds, which will allow investors to not only grow their wealth but also invest in a sustainable future. This shift could open doors for farmers or landowners interested in investing in wind farms, solar projects, or agri-tech innovations.
Spreading jobs and opportunities across rural Ireland
What really stands out in the strategy is the focus on spreading the economic benefits across rural Ireland. For far too long, economic growth has been concentrated in urban areas like Dublin and Cork, leaving rural areas behind. This strategy aims to change that by encouraging investment and job creation in rural regions.
The government is committed to improving infrastructure and digital connectivity in rural areas. This includes further investment in broadband and transport networks, which will make it easier for businesses to set up and thrive in the countryside. With better infrastructure, rural areas can attract more workers and businesses, which, in turn, will increase property values and create new opportunities for investors in local real estate and businesses.
The strategy also highlights remote working hubs, which could allow people to live in rural areas while working for companies in urban centers. This opens up opportunities for investment in local infrastructure projects, as well as housing developments in rural towns that could see a boost as more people seek to escape city life.
Supporting rural businesses and green innovation
Another key focus is on promoting green economy projects in rural Ireland. Whether it’s investing in renewable energy like wind and solar farms, or supporting the growth of agri-tech, rural Ireland is being positioned as a hub for sustainable business. For retail investors, this is a chance to back projects that not only offer financial returns but also help the country meet its environmental targets.
Additionally, the government plans to provide better access to finance and grants for rural entrepreneurs and small businesses. This could be a great opportunity for retail investors looking to back local businesses or startups. If rural areas can develop regional clusters of businesses, there’s potential for strong returns as these communities grow and prosper.
Final thoughts
Ireland’s Economic Strategy 2023-2026 is setting the stage for a more inclusive and balanced economic growth. By focusing on simplifying investments, lowering costs, and spreading job opportunities across the country—especially in rural Ireland—the government is opening up new avenues for retail investors to build wealth. Whether you’re looking to invest in green projects, back local businesses, or just enjoy the benefits of tax-efficient, long-term savings, this strategy is designed to make Ireland an even more attractive place for investors of all sizes.
The key takeaway is that rural Ireland is set to benefit from this plan, and there will be plenty of investment opportunities emerging in the regions, particularly in infrastructure, green energy, and local enterprises. For retail investors, this could be a great time to get involved in projects that will not only deliver solid returns but also contribute to the sustainable growth of communities across the country.
