Budget 2027: What's on the Horizon for Businesses?

Budget 2027 is approaching, and early signals from Government and professional advisers suggest a strong focus on competitiveness, cost stability and targeted tax measures. With ministers reassuring middle income earners about tax relief and many highlighting pressure points for Irish businesses, SMEs should prepare for a budget that supports resilience rather than sweeping reform.

Tax Cuts

The Taoiseach has publicly reassured middle income earners that they will see tax cuts in Budget 2027. This may include adjustments to income tax bands, USC thresholds or personal credits. However, the fiscal space is tight, meaning personal tax cuts are likely but broad business tax cuts are not.

Savings & Investment Scheme

The Government has confirmed plans for a new state-backed Savings & Investment Scheme aimed at helping people grow long-term savings in a simple, tax efficient way. Full details are expected when Budget 2027 is announced but business owners may be able to use the scheme personally to invest surplus income and build long-term wealth outside their business. Its tax-efficient structure could make investing more accessible and potentially improve returns compared with holding cash in a standard savings account.

Employers

For SMEs, cost pressures remain front and centre. Ministers have acknowledged challenges around minimum wage increases, employer PRSI, auto‑enrolment and ERR reporting. Possible measures include a pause on employer PRSI increases, a proposed minimum wage freeze until 2030, and simplification of ERR reporting. These would help stabilise labour costs rather than reduce them.

CGT

Ireland’s uncompetitive 33% CGT rate has been a bugbear of all stakeholders, with many recommending a reduction to 20% and improvements to Entrepreneur Relief, Angel Investor Relief and succession related incentives. These changes would support business owners planning exits, restructures or reinvestment.

Housing

Housing policy is now a business issue with housing shortages are restricting talent attraction. Budget measures may include reform of the Residential Zoned Land Tax, extensions to stamp duty rebates and incentives for retrofitted rental properties.

Infrastructure and energy investment

Infrastructure and energy investment are also expected, with supports for renewable energy, grid capacity and logistics upgrades. SMEs should expect tax simplification, including streamlined EIIS, KEEP and R&D processes, and more predictable compliance costs.

Budget Newsletter

While final measures will only be confirmed on Budget Day, the direction of travel is clear: targeted supports, modest tax adjustments and a continued emphasis on competitiveness. SMEs and the self-employed should review their cashflow, investment plans and succession strategies now to ensure they are ready to act once the details are announced.

Last updated: 16th September 2026