Budget 2027 expectations: Ireland's entrepreneurs need more than encouragement
Budget 2027 is expected to be heavily focused on personal tax, as Government seeks to ease the cost-of-living burden on consumers and further support the ‘squeezed middle’.
From a business perspective, the picture is more uncertain even with only a week to go. Entrepreneur’s Relief increased to €1.5 million in Budget 2026 and, while this was a positive development, there remains scope to do much more to support Irish entrepreneurs and improve our competitiveness internationally with targeted measures in Budget 2027.
A further increase in Entrepreneur’s relief, alongside relief for founders who reinvest their gains in new Irish businesses, would reward the risks entrepreneurs take and support in keeping capital, talent and jobs in Ireland.
Furthermore, our rate of Capital Gains Tax remains amongst the highest in Europe, and too many businesses are being held back by complex rules and unclear guidance. We encourage the introduction of streamlined access to CGT reliefs, so that business owners can plan with confidence rather than discover too late that they don't qualify. The same principle applies to the R&D tax credit. At 35%, it is quite a generous relief, but many eligible small businesses still don't claim it because the process is seen as complex and costly. A simpler, faster and more predictable system would put more money into research and support start-ups with cash flow when they need it most.
The overreliance on corporate tax receipts from a small number of large multinational firms has been discussed at length and this in itself presents a potential long-term issue.
It is critical to safeguard the long-term health of the exchequer by building a robust base of domestic businesses and founders and providing the necessary supports to enable them to grow and flourish.
