Budget 2026 arrives at a time of economic recalibration. The Government’s €9.4 billion package focuses on fiscal restraint and targeted adjustments across income supports, pensions, and business incentives. Rather than introducing major new spending measures, the Budget seeks to balance economic pressures with investment in key sectors, though reactions have been mixed across the business and financial community.
For business owners and higher-income individuals, this is a budget of refinement, not revolution. It brings modest reliefs, new compliance obligations, and fresh opportunities for those willing to plan strategically. At Fairstone, we see this as a time to strengthen your financial foundations, aligning business decisions, personal wealth, and long-term goals.
The main focus of Budget 2026 is maintaining economic balance. With global growth softening, the Government has prioritised continued investment in public services and infrastructure while keeping fiscal policy steady.
What this means for you:
While the overall approach is one of continuity, it still provides scope for structured financial and business planning.
The rollout of the auto-enrolment pension scheme in January 2026 will be one of the most significant operational shifts for employers in years. Businesses must now contribute to employee pensions for those not already in a workplace scheme, a move that supports retirement security but adds a recurring cost.
Meanwhile, PRSI rates are increasing again, with employer PRSI rising to 11.25% and employee PRSI to 4.2%. Together, these changes underscore the importance of proactive financial planning.
How Fairstone can help: We help employers understand the full financial impact of auto-enrolment, build contribution costs into forecasts, and identify opportunities to align pension benefits with overall remuneration strategies.
Click the following link to read more about Auto Enrolment in Ireland
Budget 2026 reaffirmed the government’s commitment to innovation-led enterprise. The R&D (Research and Development) tax credit has increased from 30% to 35%, offering more liquidity to scaling firms, and the Entrepreneur Relief threshold has been raised to €1.5 million, supporting founders looking to reinvest in the Irish economy.
What this means for you: These measures may create opportunities for business owners who are planning future investment in areas such as product development, talent, or capital projects, depending on how they align with individual business priorities and sector trends.
While the Budget introduced a Derelict Property Tax to encourage regeneration, it also lowered VAT on new apartments from 13.5% to 9%. Together, these measures seek to increase supply and stimulate development.
If you own or invest in property, this could influence both your development pipeline and long-term portfolio strategy.
Fairstone’s perspective: Our advisers can help you assess whether property investment remains aligned with your financial objectives, taking into account your cash flow, debt profile, and diversification needs.
A key measure for investors in Budget 2026 is the reduction of the exit tax on investment funds and life assurance savings products, from 41% to 38%. This move narrows the gap between the exit tax and capital gains tax, making Irish-domiciled funds and ETFs (Exchange-traded fund) more attractive.
While personal investors now benefit from the reduced 38% exit tax rate, corporate investors in Irish funds and certain life assurance packages continue to enjoy a significantly lower 25% exit tax rate, a 13% point advantage.
Why this matters: For companies with surplus cash, investing at the corporate level offers both tax efficiency and convenience. Rather than extracting funds as salary or dividends (triggering personal tax rates up to 52%), retaining and investing cash corporately preserves more capital while maintaining liquidity for future business opportunities.
How it works: Corporate investors provide a prescribed declaration to the fund or life company to access the 25% rate. The fund handles the exit tax deduction (including on 8-year deemed disposals), and the company claims credit when filing its corporation tax return.
The right structure depends on your timeframe, succession plans, and the balance between personal wealth and business reinvestment. Many business owners find a blended approach offers optimal flexibility.
Fairstone’s role: Our investment specialists design personalised portfolios that align with your time horizon, risk profile, and long-term goals, integrating funds, ETFs, and alternative assets in a way that reflects your evolving financial picture. We help you determine the optimal structure for your investments, whether held personally, through your company, or across both.
Click the following link to read more about Investing in ETFs in Ireland in 2025
While no new income tax bands were introduced, bracket creep remains a concern. As wages rise and tax thresholds stay static, many professionals will find themselves paying higher effective tax rates, even without a formal increase.
For high earners, pension contributions, investment packages, and strategic income timing remain essential tools to manage exposure.
The rise in PRSI and introduction of auto-enrolment bring retirement planning back into focus. While these measures add cost, they also reinforce the value of personal pension planning for both employers and employees.
Whether you’re maximising your annual allowance, contributing through your company, or integrating pension assets into an overall investment plan, coordinated advice ensures your retirement savings work as hard as your business does.
Fairstone can help: We create comprehensive retirement and wealth accumulation strategies, blending pensions, investments, and protection plans to secure long-term financial independence.
For business owners preparing for exit, Budget 2026 offers a combination of continuity and opportunity. The enhanced Entrepreneur Relief remains one of the most effective tools for reducing tax on qualifying disposals, while the lower exit tax improves the investment landscape post-sale.
How Fairstone supports your next chapter:
Selling or transitioning a business is more than a transaction, it’s a pivotal life event. Fairstone’s advisers specialise in guiding entrepreneurs through that process with clarity and confidence.
Budget 2026 may not have delivered sweeping tax reform, but it creates space for structured, intelligent planning. For business owners and high-income earners, the real opportunity lies in strategic integration, ensuring every decision about your business, investments, and lifestyle works together.
At Fairstone, we help clients move from reacting to the Budget to planning proactively, making confident, informed choices about their business, wealth, and future.
Sources:
Gov.ie
Disclaimer:
This article is for general information purposes and is not an invitation to deal or address your specific requirements. Any expressions of opinions are subject to change without notice. The information disclosed should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information of the various source material, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
