There will be no capital gains tax applied to income earned under the new investment scheme being developed by the Tánaiste and Minister for Finance Simon Harris.
The Cabinet was briefed about the new savings and investment account earlier this week, but details are just emerging.
Ministers were told that the preferred model being examined is a Swedish system called Investeringssparkonto (ISK).
The scheme will promise a "beneficial tax treatment for a range of investments", acting as a "one stop shop" for retail investors.
At present there is around €170 billion on deposit by savers in Ireland, and it is hoped a portion of this money will be invested.
While Irish people are among the best savers in Europe, holdings in investments are just above 2.2%, according to data presented to Cabinet.
Next Tuesday, Mr Harris will convene a Savings and Investment Forum - bringing together relevant industry and policy stakeholders to inform the process of establishing a new investment account.
A spokesman for the Tánaiste said Minister Harris "believes we need to strengthen Ireland's investment culture, giving people real opportunities to make more of their hard-earned money".
The minister aims to introduce the scheme as part of Budget 2027 so accounts will be operational next year.
