Budget 2026, which was announced on Tuesday, 7th October, was seen an indication of Ireland's priorities and ambitions over the next 12 months and beyond
Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers announced the measures in a package totalling €9.4bn, with €8.1bn committed to public spending and €1.3bn in taxation measures.
Each budget represents the opportunities and challenges Ireland faces, as well as the measures taken to shape its future by developing its capacity for competitiveness, resilience, and innovation.
Budget 2026 will impact each sector in its own unique way, and understanding that can make all the difference.
For years, EY Ireland has helped many understand what each budget really means, from Irish entrepreneurs to international businesses and also individual taxpayers.
It helps organisations of all sizes, from micro SMEs to large multinational corporations, plan and strategise with confidence for both today and beyond Budget 2026.
By providing expert analysis and clear insights, it empowers its clients to make informed decisions with confidence.
EY's team of experts understands that the budget is more than just numbers and figures; it shapes Ireland's future. EY’s Budget Hub (eybudget.ie) contains expert analysis, videos, and sector breakdowns to ensure you understand its impact.
Optimism for entrepreneurs
Its team of experts provides insights into areas such as tax credits, entrepreneurs' relief, VAT, housing, energy, and more.
This year’s budget aimed to balance the needs of both corporate and personal taxation with a view to the long term. It was something that Michael Rooney, Tax Partner at EY Ireland, described as "the first stage in a four-year budget cycle."
In terms of personal tax, the increase in the National Minimum Wage by 65c per hour was welcomed by lower paid workers but it also led to a small decrease in the payment of USC by all. One of the most welcome developments for the multinational sector was the extension of the Special Assignee Relief Programme (SARP) for five more years. The scheme gives tax relief to those assigned to work in Ireland from abroad.
"It’s clear that to have companies come and locate in Ireland, you need to attract key talent," said Rooney. "To renew it for five years adds more certainty for companies so they can plan for the long-term."
"It’s a really positive step to show Ireland as a competitive country to do business in."
Other areas Rooney highlighted as positive and that may have flown under the radar were the increase in CGT Entrepreneur Relief, which will increase from €1m to €1.5m from 1st January, offering greater support to those building and scaling businesses. Also the continuation of the Key Employee Engagement Programme scheme (KEEP), which allows organisations to offer equity incentives to key employees in a tax-efficient way; a vital tool for retention in a competitive labour market.
Additionally, the Foreign Earnings Deductions (FED) provides an extra incentive for Irish companies looking to expand overseas in countries such as South Korea, Turkey, and the Philippines.
"For companies looking to open up their export markets and not be solely reliant on developed markets like the US or the EU, it will incentivise their key sales and executive members to travel overseas and market Irish companies in these locations," he added.
Other areas mentioned by Rooney included the reduction in VAT for apartments and hospitality as both the construction and hospitality sectors are huge employers and this will further protect employment in these vital industries.
Infrastructure is another cornerstone of Budget 2026. Ferga Kane, Partner and Infrastructure and Real Estate Sector Lead for EY Ireland, said that the budget "reinforced investment commitments announced in the National Development Plan review."
"For Irish businesses, the budget signals the need to prepare. The public investment pipeline is expanding in construction, engineering, green tech, and digital systems. Success will favour those who anticipate spending trends, build necessary skills, and establish partnerships early," she added.
Budget 2026 is shaping Ireland's approach over the next twelve months and beyond. Knowing what that means is essential and EY is here to help.
To find out more about Budget 2026 shapes your life, visit eybudget.ie
