Research conducted by Ask About Wealth across 150 consultations has revealed a striking trend among high-income individuals in Ireland: many are leaving substantial tax savings unclaimed each year. Despite rising tax obligations and available incentives designed to encourage strategic financial planning, the average high earner is failing to capitalise on up to €38,000 in annual tax concessions.
This trend points to a broader issue of underutilisation of Ireland’s tax planning opportunities, particularly among those in the highest tax brackets. The Revenue Commissioners estimate that the top 10 percent of Irish earners – individuals making €102,000 or more – will contribute 55 percent of all income tax collected in 2024, while the top 1 percent, those earning €290,000 or more, are set to pay nearly a quarter of the entire income tax bill. While high earners bear a significant share of the nation’s tax burden, they’re also positioned to benefit most from Ireland’s range of tax reliefs. However, our findings show that many high earners lack awareness or fail to take advantage of these concessions fully, a costly oversight given the nation’s high personal tax rates.
Missed Opportunities in Tax Planning
The €38,000 in unclaimed tax reliefs spans various available measures, from pension contributions and investment tax reliefs to efficient use of Benefit-in-Kind (BIK) allowances and small benefit exemptions. High-income individuals in Ireland, like their counterparts globally, often prioritise income growth and wealth accumulation. Yet, as our consultations have consistently shown, many are unaware of the full range of tax benefits or how to integrate them effectively into a broader financial strategy. This missed opportunity is particularly notable given Ireland’s increasingly narrow tax base. As income tax rates have risen, so has the need for high earners to take control of their finances by leveraging tax planning options designed to incentivise positive economic behaviours, such as investing in pensions or taking advantage of Employment Investment Incentive (EII) schemes.
For high earners, tax planning is not just about reducing liability; it’s also a powerful tool for long-term wealth preservation and growth. As the €11.6 billion increase in Ireland’s income tax take since 2018 underscores, top earners are footing a growing share of the bill. But with proper planning, they can mitigate some of the impact by strategically using tax concessions as part of a comprehensive financial strategy.
How Budget 2025 Fits In
The recent adjustments in Budget 2025 underscore the value of staying informed and proactive. For example, the increase in the Small Benefit Exemption limit from €1,000 to €1,500 provides a valuable, tax-free way for company owners to reward employees and themselves. Electric vehicle (EV) incentives, such as the BIK exemption for company cars up to €45,000, offer significant savings for those able to incorporate these assets into their business use.
Making the Most of Ireland’s Tax System
Tax incentives aren’t loopholes; they’re tools, explicitly designed by policymakers to support businesses, encourage saving, and drive economic activity. By working closely with a financial advisor who understands Ireland’s complex tax landscape, high earners can turn these potential savings into a substantial financial advantage. If you’re one of the 396,406 Irish high earners, a tailored tax strategy is essential in helping you keep more of what you earn. With planning and proactive guidance, substantial savings could be yours.