The Beginner’s Guide to Investing in Ireland (2024)

FAQs

What is the best thing to invest in in Ireland? ›

What is the best thing to invest in in Ireland? Consider investing in stocks and shares for a better return on investment, as opposed to savings accounts, if you are willing to take a risk and have a long-term approach. This can provide higher potential returns.

If you have a lump sum of around €50,000 or higher, it's time to consider using Moneycube to build your own portfolio. If you're willing to handle your own tax affairs, you can open a much wider world of fund options, and significantly drive down your overall cost of investing.

Real Estate: Investing in properties, whether residential or commercial, can provide rental income and the potential for appreciation. Retirement Accounts: In Ireland, options such as Personal Retirement Savings Accounts (PRSAs) and Occupational Pension Schemes offer tax advantages for long-term retirement savings.

Consider putting three-fifths of your €100,000 in an Irish commercial property fund and the remainder in a high-yield dividend fund, says Rory Nelson, founder of Galway investment advisers Nelson Life.

Among Irish consumers the two most popular categories for online purchases are Clothing and Shoes.

Savings accounts

If you have a lump sum, you might want to consider investing your money in a deposit account. This type of savings account allows you to lock your money away for a set time at a rate that won't change until your account matures.

Dividends are taxable under your standard income tax rate. Within the threshold, you will pay 20% on your dividends, and if you exceed that amount, you will pay 40%. ETFs (Exchange Traded Funds)are exceptionally popular in Ireland. For dividends paid out from an ETF, investors assume a 41% tax responsibility.

To invest in Ireland-Domiciled S&P500 ETF, you'll need to have a broker with access to the exchange where the ETF is listed. In this case, all the ETFs that we discussed are listed on the London Stock Exchange (LSE).

On this analysis, property in Ireland would seem like an attractive option for a prudent investor who intends to hold for the long run. One caveat to add here though is that the RPZ restrictions which prevent a landlord from increasing the rent beyond 4% per annum will have implications for investors.

How to get 10% return on investment? ›

By holding your lump sum in a cash savings account, as opposed to investing it in the stock market, you won't run the risk of your money falling in value just before you need to access it.

Households that were in the top 20% in 2018 would have needed a net wealth of €445,000. This threshold increased by €57,300 in 2020 to €502,300. This compares to an increase of €32,400 in the threshold to be in the top 10%.

Miraculously, Ireland jumped from being one of the poorest countries in Europe to one of the richest in only a matter of years. Ireland's first boom was in the late 1990s when investors (including many tech firms) poured in, drawn by the country's favorable tax rates.

However, some of the wealthiest areas in Ireland include Dublin, Cork, and Galway. These cities have a high concentration of wealthy individuals, as well as thriving industries such as technology, finance, and tourism.

Electronics and Media (24% of market share by revenue) Toys, hobby & DIY (20% of market share by revenue) Furniture & Appliances (15% of market share by revenue) Food & Personal Care (14% of market share by revenue)

The national average in 2022 was €41,824. For the top 1% of earners, the median earning for men was €285,672 while for women it was €277,613. Men's annual earnings were found to be greater than women's at every percentile last year.

Ireland is a leading hub for software engineering, with the industry employing over 105,000 people and generating over €12 billion in exports annually. The demand for software engineers in Ireland continues to outstrip supply, with the industry projected to grow at a CAGR of 8.5% between 2021 and 2026.