The OECD published Survey of Ireland 2025 on 12 February 2025, warning Ireland’s heavy reliance on tax revenue from multinational companies and a narrow tax base could be risky.
The survey also points out that one-third of income earners in Ireland don’t pay personal income tax or the universal social charge. Despite a high standard VAT rate, reduced VAT rates are lowering tax revenue.
The survey suggests diversifying its tax system to ensure long-term financial stability. The OECD recommends broadening the personal income tax and VAT bases and phasing out temporary mortgage interest relief and tax incentives for landlords and tenants introduced in recent budgets. The survey also suggests raising local property taxes and increasing rates on residentially zoned land.
