Budget 2025 Copy

The Budget package unveiled amounts to approximately €10 billion. This includes a €6.9 billion allocation for core spending, supplemented by a €2.2 billion cost-of-living package. Housing remains a major priority, with €7.8 billion allocated to the sector, including €2 billion for the construction of 10,000 new social homes.

Forvis Mazars Budget 2025 Briefing

Data quality (37%) and data tracking (28%) are the top two impediments to producing a sustainability report.

37%

Most businesses already produce a sustainability report.

65%

10 tax-related changes announced in the budget:

Businesses plan to increase investment in sustainability initiatives in 2023.

68%

Budget 2025

Forvis Mazars overview of key measures

In Minister Jack Chambers’ first Budget address, the Minister emphasised the importance of addressing current societal needs while safeguarding the future of Ireland's economy for coming generations.

Over a third are “completely ready” to meet new ESG reporting requirements; another 38% are “mostly ready”.

36%

"It is unusual for the Government to have so much to give out to so many in a year in which an election is on the horizon. Almost all sectors of the country will benefit from a combination of reduced taxes, increased welfare, once-off cost of living supports and a significant increase in both current and capital expenditure. The real test will be the ability to deliver the significant capital expenditure projects in a timely and cost-efficient manner over the next number of years to the benefit of society and for the continued growth and development of the Irish economy."

Forvis Mazars overview of key measures

Budget 2025

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Frank Greene

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Head of Tax

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Frank Greene

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Head of Tax

A note from our Head of Tax

The theme of balance and a cautious approach was echoed throughout the speeches of both Ministers Jack Chambers and Paschal Donohoe. Minister Chambers described Budget 2025 as a critical step towards long-term economic stability, while also responding to immediate challenges such as inflation, housing shortages, and labour market pressures.

The health sector will benefit from €2.7 billion in additional funding over the next two years, with plans to add 495 hospital and community beds alongside targeted measures such as free IVF and Hormone Replacement Therapy. Businesses will see support through the introduction of a new Energy Subsidy Scheme worth €170 million and enhancements to the R&D Tax Credit, offering €75,000 in the first year.

Research and Development (R&D) Tax Credit: The R&D tax credit has been increased, with the first-year threshold rising from €50,000 to €75,000 to encourage further investment in innovation.

Employment Investment Incentive (EII) Scheme: The EII scheme has seen a doubling of the investment limit from €500,000 to €1 million, providing more significant incentives for angel investors and supporting high-potential start-ups.

USC Reduction: The Universal Social Charge (USC) rate has been reduced, with the entry threshold for the new 3% rate increased by €1,622 to €27,382, indirectly supporting both businesses and employees by increasing disposable income.

Inheritance Tax Changes: The Capital Acquisitions Tax (CAT) threshold for children inheriting from their parents has been raised from €335,000 to €400,000, benefiting family businesses and succession planning.

Stamp Duty Increase: For properties valued over €1.5 million, the stamp duty rate has been raised to 6%, affecting transactions involving high-value commercial properties or business-related real estate investments.

Landlord Relief: The pre-letting expenses relief for landlords has been extended until the end of 2027, encouraging the rental sector and providing relief for business property owners.

10.

Energy Subsidy Scheme: A new Energy Subsidy Scheme worth €170 million has been introduced to help businesses in retail and hospitality companies cope with rising energy costs.

Foreign Dividends Tax Exemption: A partial exemption for foreign dividends for companies has been introduced, providing relief for multinationals operating in Ireland with overseas earnings.

Benefit-in-Kind (BIK) Extension: The temporary relief on the Benefit-in-Kind regime for company cars has been extended for another year, easing costs for businesses that provide vehicles to employees.

Carbon Tax Increase: The carbon tax on petrol and diesel has been increased from €56 to €63.50 per tonne, impacting businesses reliant on transport and logistics but encouraging a shift towards greener practices.

These changes aim to boost innovation, investment, and regional development in SMEs and innovative start-ups.

Watch our Budget 2025 Briefing for a breakdown of what it means for you and your business. Our expert panel offer insights into the impact of Budget 2025 on Irish businesses and the economy.We were delighted to welcome back Professor Alan Barrett, CEO of the Economic and Social Research Institute (ESRI), as our guest speaker. Alan shared his perspective on Budget 2025 and the broader economic landscape, and our expert panel broke down the key announcements and their potential impact.

Budget 2025 report

Watch

Budget 2025 Briefing live webcast

Our expert panel offer insights into the impact of Budget 2025 on business and the economy. Our live webcast Budget 2025 Briefing on 2 October 2025 is an in-depth discussion of the key announcements made in the budget and their impact on you and your business. This year, we were delighted to welcome Professor Alan Barrett, CEO of the Economic and Social Research Institute (ESRI), as guest speaker. Alan shares his perspective on Budget 2025 and the broader economic landscape.

Forvis Mazars Budget 2025 Briefing

Download the report

Budget 2025 key points

Finance Bill 2024