Tax maths
PIA vs ETFs: who comes out ahead, and which claims don't add up
Outside the account, ETF gains face 35% exit tax and a bill every 8 years. Inside the Personal Investment Account, the first €50,000 is tax-free and 1% a year applies only above it. Here's what that means for a first-time saver, someone paying in the maximum, the wealthy and the very wealthy.
Updated 17 October 2026
The short answer
- Under €50,000, the PIA wins on tax. It pays nothing, while an ETF outside it pays 35% on gains.
- Just above €50,000, the tax is tiny. €52,000 pays 1% of €2,000, which is €20 for the year.
- Well above €50,000, it depends on returns. ETFs outside the PIA only come out ahead if returns stay weak for years, or if a big fall lands when your balance is large.
What this comparison covers, and what it doesn't
The one difference that matters
ETF outside the PIA
Taxes your gains
35% of the profit only. No profit, no tax. Charged every 8 years (deemed disposal) and when you sell.
Inside the PIA
Taxes your account value
1% a year of everything above €50,000, whether markets rose or fell. Nothing when you sell.
A simple rule of thumb: on money above €50,000, 1% of the value is the same as 35% of a 2.9% gain. If that money grows faster than about 2.9% a year, the PIA costs less in tax. If it grows slower, the ETF route costs less. Deemed disposal and the tax-free first €50,000 tilt this further towards the PIA.
You can't get to €50,000 overnight
The €12,000 yearly cap sets the pace. Paying in the full €1,000 a month at a 5% return, the account first passes €50,000 in year 4. At €200 a month it takes until year 15. Even then, the first years above the threshold cost little, because the charge is only on the slice above it.
Who comes out ahead, at a glance
Both routes are the same fund bought with the same money. The PIA pays nothing on the first €50,000 and 1% a year above it; the ETF outside pays 35% exit tax on its gains. Each cell shows who finishes with more, and by how much.
Starting balance
€0
Paid in
€1,000 a month
the €12,000 yearly cap
Both routes
One global ETF
0.25% a year platform fee, either side
Yearly return
Growth before tax
an assumption, not a forecast
Ends up with more, after tax
| Yearly returnhow much the fund grows | 5 years | 10 years | 20 years | 30 years |
|---|---|---|---|---|
| 0%over €50,000 in year 5 | ETF by€32 | ETF by€1,929 | ETF by€13,735 | ETF by€34,940 |
| 2%over €50,000 in year 5 | PIA by€866 | PIA by€1,514 | ETF by€1,530 | ETF by€11,391 |
| 4%over €50,000 in year 4 | PIA by€1,940 | PIA by€6,086 | PIA by€18,724 | PIA by€39,054 |
| 7%over €50,000 in year 4 | PIA by€3,646 | PIA by€14,271 | PIA by€65,228 | PIA by€190,133 |
Illustrative, worked out with the same engine as our calculator. Not advice.
›Why does the ETF win at 0% after 5 years?
The ETF is taxed on profit. The PIA is taxed on value above €50,000, profit or not.
- You pay in €60,000 over 5 years (€1,000 a month).
- At a 0% return, minus the 0.25% platform fee, the account is worth about €59,632. No profit at all.
- ETF: €0 tax. The 35% exit tax applies only to gains. No gain, no tax.
- PIA: €32 tax. Once the balance passes €50,000, 1% is charged on the amount above it each year, even with no growth.
So the ETF finishes €32 ahead. In flat or falling markets an ETF has no tax bill, while a PIA above €50,000 still pays 1% on the excess. Once returns pick up, the PIA quickly pulls ahead, as the rest of the grid shows.
“Volatility evens out” — only partly
A common argument is that over long periods the ups and downs cancel out. Average yearly returns do settle down over decades. But the gap between a lucky and an unlucky investor's final pot grows wider, not narrower, and the order of returns matters. A crash in year 3 hits a small balance. The same crash in year 25 hits your whole life's savings.
That's where the PIA's design matters. Outside the account, a falling ETF owes no exit tax. Inside, the 1% is still charged on whatever is left above €50,000.
The down-year dilemma, worked through
PIA before the fall
€400,000
After a 30% fall
€280,000
PIA tax that year
€2,300
ETF outside the PIA: €0 on a loss
You've lost €120,000 and still owe €2,300, which may mean selling units at a low price to pay it. It is a real cost. It's also about 0.8% of what's left, and the ETF route doesn't escape for free: the next deemed-disposal date, or a sale, taxes the recovery at 35%.
Claims we've checked
We've looked at what commentators and platform owners have said publicly. Where a point is fair, we say so.
“It's a stealth wealth tax. And it applies whether an account has made gains or losses in a given year.”
Michael Healy, chief executive of IG Consumer (IG Group)
He's right that the 1% is charged in years when the account loses money. But it is charged only on value above €50,000, and it isn't hidden: the rate is published and the provider deducts it for you. Many first-time savers will pay nothing for years.
€100,000 above the threshold earning 5% loses about a fifth of the gain to the 1% charge, “effectively a 21 per cent tax on your gain”.
Michael Healy, IG
The arithmetic holds. But the realistic alternative for an Irish fund investor is 35% exit tax on the same €5,000 gain (€1,750), plus a deemed-disposal bill every eight years. Against that, about 21% is lower, not higher. The comparison only flips when returns fall below about 2.9% a year.
Critics say the account “will greatly benefit the millionaire and billionaire class”.
Critics quoted in the Irish Examiner (pre-Budget)
That was written before the figures were known. With a €12,000 yearly cap, nobody can move a fortune in, and above €50,000 the account is taxed every year. For the very wealthy, the PIA is a rounding error.
Deemed disposal remains a problem outside the account.
Proinsias O'Mahony
Outside the PIA, ETFs still face exit tax every eight years on gains you haven't taken, now at 35%. The Government has said it intends to move beyond deemed disposal, but nothing has been legislated, so we don't assume it will go.
You may have heard: “Just wait — deemed disposal is going away anyway.”
It is a stated intention, not law. Planning around a change nobody has legislated for is a bet, not a plan.
Which route suits you: PIA or ETFs outside it?
Four types of investor. Every figure below assumes the investments grow by 5% a year (the investment return, before tax and a 0.25% yearly platform fee), starting from €0.
First-time saver
€200 a month
At €200 a month you wouldn't pass €50,000 until year 15. After 20 years the PIA tax paid is €731, against €10,126 for an ETF outside it.
Likely better offPIA, clearly
Paying in the maximum
€1,000 a month (€12,000 a year)
Paying €1,000 a month from €0 and growing at 5% a year, you pass €50,000 in year 4. By year 5, total PIA tax is just €95. After 20 years you'd have €365,775 in the PIA against €334,030 outside it; after 30 years, €677,958 against €601,111.
Likely better offPIA, unless investment returns stay below about 2.9% a year for decades
Wealthy investor
Large existing portfolio
The Finance Bill only lets cash go in, not existing holdings, and the cap keeps the PIA growing slowly. It's a useful extra space, but most of your money and tax stays outside it. As the PIA grows large, so does the down-year risk, which is why some people may keep the PIA to a certain size and put new money elsewhere.
Likely better offFill the PIA each year, and weigh the down-year risk once it's large
Ultra-high-net-worth
Wealth well into the millions
At €12,000 a year, the PIA barely moves the dial. Your tax position will be shaped by other structures and professional advice, which this site doesn't cover.
Likely better offTreat the PIA as a minor extra
Illustrative. Returns are assumptions, not forecasts. Not advice.
Above a certain size, what are the alternatives?
Some people plan to fill the PIA up to a certain level, then put surplus money elsewhere. The facts on each route:
- ETFs outside the PIA: no tax in a falling year, but 35% exit tax on gains, deemed disposal every 8 years, and losses on one fund generally can't be set against gains on another.
- Individual shares: capital gains tax at 31% on gains, losses can be offset, and there's a small yearly exemption. But a handful of shares is far riskier than a global fund. See CGT explained.
What the Finance Bill confirms
Section 26, Finance (No. 2) Bill 2026
Run your own numbers
Open the PIA calculator to compare a PIA, a traditional ETF investment and savings accounts with your own amounts. New to the eight-year rule? Deemed disposal, explained.
Frequently asked
Is the PIA better than ETFs if I have less than €50,000?
On tax alone, yes. Below €50,000 the PIA pays no tax at all, while gains on an ETF outside it face 35% exit tax and deemed disposal every eight years. These figures are in the Finance Bill, not yet law.
Do I pay the 1% PIA tax in a year when markets fall?
Yes, on any value above €50,000. Outside the PIA, an ETF that has fallen owes no exit tax that year. This is the PIA's real weak point, and it mostly matters for large balances.
When does an ETF outside the PIA beat the PIA?
Roughly when returns on the amount above €50,000 average less than about 2.9% a year, because 1% of the value equals 35% of a 2.86% gain. Over long periods, global share returns have usually been higher than that, but past returns are no guarantee.
Does this comparison include adviser or platform fees?
No. It compares the 1% PIA charge with exit tax and deemed disposal only, using the same 0.25% platform fee on both sides. Adviser fees, commission and different fund charges can matter more than the tax difference.
Can I move existing ETFs into a PIA?
Not as they are. Under the Finance Bill, only cash goes in, so you would sell first (paying any exit tax or CGT due) and pay in up to €12,000 a year.
Run your own numbers
Compare a Personal Investment Account against a deposit account and a standard fund over 10, 20 or 30 years — with real Irish rates.
Open the PIA calculatorInformation only, not financial or tax advice. PIA rules are as written in the Finance (No. 2) Bill 2026, published 19 October 2026, and are not law until the Bill is signed. Figures cited are from the Department of Finance roadmap, Revenue, Skatteverket, GOV.UK and the IRS.