10 key points from Budget 2025

The Irish Budget 2025 brings a series of impactful measures aimed at addressing key areas like infrastructure, housing, business support, and personal finance. 

With €3 billion allocated to boost national development and significant changes introduced across several sectors, this year’s budget reflects the government’s commitment to driving economic growth while tackling pressing social issues. 

From increased funding for housing and energy projects to enhanced tax reliefs for businesses and individuals, our experts have put together the Top 10 highlights that you should know. 

Watch a breakdown of our 10 key points from Budget 2025 below

1. Overall allocation €3 billion for infrastructure spending

• €1.25billion will be made available to the Land Development Agency.
• €1 billion allocated to Irish Water for non-domestic capital projects.
• €750 million earmarked for equity injection to boost electricity grid development.

2. Key housing measures announced

• Stamp Duty on Bulk Acquisitions: Increased from 10% to 15%, effective immediately.
• Stamp Duty on Residential Properties: Properties valued above €1.5 million now subject to 6%.
• Vacant Homes Tax: Increased from 5 to 7 times the property's existing Local Property Tax rate.

3. The proposed Retirement Relief changes from last year’s Budget will be implemented from 1 January 2025. 

• An additional tweak has been added which allows the €10 million cap to not apply in cases where the assets are held for 12 years.

4.    Key business support measures announced by Minister Chambers

• Extension of Participation Exemption to foreign dividends for multinational businesses and branch exemption will be introduced in the future. 
• R&D Tax Credit: The first-year payment threshold increased from €50,000 to €75,000.
• Corporation Tax Start-Up relief enhanced.

5.    The Employment Investment Incentive, Start-Up Relief for Entrepreneurs, and Start-Up Capital Incentive are extended by two years to the end of 2026.

•    Employment Investment Incentive relief doubled from €500,000 to €1 million.
•    Start-Up Relief for Entrepreneurs increased from €700,000 to €980,000.

6.    National minimum wage rising 

• Raising by 80c €13.50/hour from 1 Jan 2025. 
• Tax-free threshold for those earning €20,000 or less.

7.    Small Benefit Exemption limit raised

• Limit raised from €1,000 to €1,500.

8.    The €10,000 temporary universal Benefit-in-Kind (BIK) relief for company cars is extended for another year.

9.    Capital Acquisitions Tax (CAT) thresholds increased:

• Group A: From €335,000 to €400,000.
• Group B: From €32,500 to €40,000.
• Group C: From €16,250 to €20,000.

10.    The 9% reduced VAT rate for gas and electricity will be extended for an additional 6 months, until 30 April 2025.