Budget 2026 takes place on Tuesday October 7. So how might the budget impact you and your business? And what measures could help foster competitiveness, encourage innovation, and address critical issues in areas such as housing and sustainability?
At KPMG we’re committed to helping you stay informed. Stay connected to our budget content for regular insights from our tax professionals on what really matters for you and your business.
Ahead of budget day, our pre-budget submission recommendations aim to bolster Ireland’s economy with policies designed to take account of global uncertainty, the challenge of tariffs and the changing business environment.
Meanwhile our professionals highlight specific measures for consideration in a series of short videos on the practical steps the government can consider.
What we'd like to see in Budget 2026
Olive O’Donoghue's recommendations on personal taxes ahead of Budget 2026
Sean Sheridan’s recommendations for FDI & international businesses ahead of Budget 2026
Cian Liddy’s recommendations to support domestic business ahead of Budget 2026
Ireland's success is closely tied to how successful we are in retaining and attracting individuals to work here. This in turn is closely tied to getting it right on competitiveness and housing.
Fostering competitiveness
We have made several recommendations regarding competitiveness including simplifying the tax code to reduce the burden of compliance and costs, introducing a territorial tax regime for corporations, increasing the entry point to the marginal income tax rate and capping the amount of income subject to PRSI contributions for employees and employers.
Meanwhile to boost the environment for research and innovation we recommend increasing the R&D Tax Credit to 35% and create a 50% rate for innovation in green technologies whilst incentivising top researchers to come to Ireland.
Promoting entrepreneurship
Entrepreneurship is the foundation of our economy. For the domestic sector, recent initiatives such as the Action Plan on Market Diversification to help alleviate the impact of tariffs and encourage expansion into new markets are welcome.
We also need to use the tax policy levers at our disposal and our suggestions include better access to finance through the Employment Investment Incentive Scheme (EIIS) and introducing CGT reforms to encourage investment.
The housing challenge
Housing is a big challenge. Our pre-budget suggestions include extending mortgage interest relief and removing the rent credit sunset for 2025, introducing tax relief for residential properties developed by employers and implementing a controlled relief to encourage conversion of commercial properties to residential use.
Get in touch
The measures unveiled in Budget 2026 will have far-reaching implications for businesses across Ireland. If you have any enquiries, comments, or wish to explore further, we are here to assist.
Contact Orla Gavin of our Tax team today.
