In the world of Irish tax, 2026 is a year of “The Great Reset.” While the headlines often focus on broad budget figures, the Finance Act 2025 is where the actual law lives—and it has introduced some of the most significant technical changes for SMEs and high-earners in a decade. These legislative updates represent a paradigm shift in how the Irish government balances attracting foreign direct investment (FDI) with tightening compliance and transparency standards.

From a 25% jump in expat salary requirements to a “power-up” for R&D companies, navigating these changes requires moving beyond basic bookkeeping. This deep dive explores the 2026 landscape, focusing on the strategic adjustments required for the Special Assignee Relief Programme (SARP), the enhanced Research & Development tax credit, and the significant expansions to Entrepreneur Relief that are designed to fuel the next generation of Irish-led innovation.

1. The Executive Relocation Reset

Can I still claim SARP if I earn less than €125,000 in 2026?

This is the number one question hitting our desks this year. For over a decade, the Special Assignee Relief Programme (SARP) used a €100,000 base salary as its entry point. As of January 1, 2026, that threshold has officially jumped to €125,000.

• Existing Claimants: If you were approved before 2026, you are “grandfathered” in at the old rate.
• New Arrivals: If your base salary (excluding bonuses and benefits) is €115,000, you no longer qualify for the 30% tax-free deduction.
• The Strategy: For employers, this may require restructuring compensation packages to ensure key talent remains tax-efficient upon relocation.

How does the 180-day SARP filing rule affect my tax refund?

The Finance Act introduced a “Safety Net” for administrative delays. Previously, missing the 90-day notification window meant losing the relief entirely.

• The New Rule: You now have up to 180 days to notify Revenue.
• The Penalty: If you file between Day 91 and Day 180, you lose your first year of relief and the total duration is cut from 5 years to 4 years.
• Verdict: Filing within the original 90 days is still the only way to protect the full value of the relief.

2. Boosting Business Innovation

What are the new R&D tax credit payment limits for Irish SMEs?

If your company is in the tech or life sciences space, the Finance Act 2025 has turned the R&D tax credit into a major cash-flow engine.

• Rate Increase: The credit has jumped from 30% to 35% for 2026.
• Upfront Cash: The “First-Year Payment Threshold” has increased to €87,500 (up from €75,000). This means SMEs get a larger portion of their credit as a cash refund in Year 1, rather than waiting for three-year installments.
• The 95% Rule: If an employee spends 95% of their time on R&D, you can now claim 100% of their salary as qualifying spend—removing the administrative nightmare of minute-by-minute time tracking.

3. Planning Your Exit Strategy

How do I calculate Entrepreneur Relief after the Finance Act 2025?

For founders planning a sale, the math just got better. The Revised Entrepreneur Relief—which offers a reduced 10% Capital Gains Tax (CGT) rate—has seen its first limit increase in years.

• The New Limit: The lifetime limit on qualifying gains has moved from €1 million to €1.5 million.
• The Saving: This change represents a potential tax saving of up to €115,000 for individuals who hit the full threshold.
• Aggregation Rule: If you sold a business in 2024 and used your €1M limit, you can still access the “extra” €500k for a new disposal made in 2026.

4. The Homeowner’s Safety Net

Is the Mortgage Interest Tax Credit still available in Ireland for 2026?

Yes, but it has been “tapered.” The government extended this relief to help those impacted by the rate hikes of the last few years, but the value is lower than in 2024/2025.

• The 2026 Cap: The maximum credit for the 2026 tax year is now €625 (down from €1,250).
• The Eligibility: You must still meet the core criteria: a mortgage balance between €80k and €500k as of Dec 2022, and a clear LPT record.
• Timeline: You can claim your 2025 relief (full value) now in early 2026, but the 2026 tapered relief won’t be claimable until 2027.

Summary: The Intax.ie 2026 Checklist

Feature	Old Rule (Pre-2026)	New Rule (Finance Act 2025)
SARP Salary	€100,000	€125,000
R&D Credit Rate	30%	35%
Entrepreneur Relief	€1 Million Limit	€1.5 Million Limit
Max Mortgage Credit	€1,250	€625 (Tapered)

Building Your Financial Engine

The Finance Act 2025 rewards those who plan ahead. Whether you are an SME trying to maximize R&D cash flow or an expat navigating the new €125k threshold, “generic” accounting isn’t enough.

At Intax.ie, we specialize in these specific resets. We don’t just file your returns; we audit your eligibility to ensure you aren’t the “1 in 3” homeowners or business owners overpaying their tax.

Ready to audit your 2026 tax strategy?