Ireland’s government collected far more money than it spent in 2025, recording a budget surplus of 12.4 billion euros—roughly 3.7% of the country’s modified gross national income. This marks the fourth year in a row that Ireland brought in more cash than it paid out, a streak most countries would envy.
Ireland achieved a 12.4 billion euro budget surplus in 2025, marking its fourth consecutive year of collecting more revenue than spending.
The surplus easily beat October’s forecast of 3% of national income. Tax receipts climbed to a record 106 billion euros, despite worries about potential tariffs from the Trump administration. Corporation tax alone jumped 17.2% to reach 32.9 billion euros, paid mostly by a handful of highly profitable American tech giants. Just a decade ago, corporate tax brought in under 6 billion euros—the change has been dramatic.
Income tax receipts rose 4.3% to 36.6 billion euros, reflecting a strong job market. VAT collections increased 5.1% as well. Overall, tax revenues grew 9% compared to 2024 when excluding special one-time payments. Speaking of special payments, Apple handed over 14 billion euros in back taxes after losing a European Union court case—an unexpected windfall that sweetened the financial picture.
Government spending didn’t stand still either. Total expenditure reached 109.4 billion euros, up 5.5% from the previous year. This growth rate was slower than 2024’s 9.5% increase, showing some restraint. Officials pledged to keep average annual spending growth at 6% or less for the rest of the decade. The higher revenue from corporate tax receipts allowed the government to increase spending in 2025.
Ireland plans to set aside 6.5 billion euros of the surplus into sovereign wealth and savings funds, which will grow to about 24 billion euros. The remaining money will support investments in health facilities, housing projects, schools, transportation networks, and climate initiatives. The government identified water infrastructure as one of four key investment pillars critical for maintaining the country’s competitive position and attracting foreign direct investment.
Debt levels continue falling as the government manages its finances carefully. The underlying budget surplus improved by 2 billion euros compared to the previous year, reaching 3.8 billion euros. For a small island nation, Ireland’s financial performance stands out—proof that careful planning and fortunate corporate tax windfalls can create fiscal breathing room. Full-service brokers can help governments and large investors manage parts of these funds with tailored strategies and ongoing advice, acting as financial coaches for long-term allocations.
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