Budget 2026: Implications for Ireland’s Tech Industry

Budget 2026 is setting the stage for Ireland’s tech sector. From expanded R&D incentives to the creation of a National AI Office, the latest measures highlight where innovation, investment, and talent growth are headed. In this article, we break down the key budget announcements shaping the future of technology in Ireland.

Economic Growth and the Job Market

The Irish economy is projected to continue its growth trajectory, with modified domestic demand (MDD) expected to increase by 3.3% this year and 2.3% in 2026. Controlled inflation and economic momentum create a favourable environment for tech companies and startups alike. Employment trends support this optimism: over 440,000 jobs have been added since the pandemic, with a further 63,500 expected by the end of 2026. These numbers reflect a dynamic job market, where opportunities for skilled tech professionals remain strong.

Investment in Infrastructure and Innovation

Budget 2026 allocates €9.4 billion to infrastructure, boosting productivity and long-term growth. For tech companies, improved connectivity and digital infrastructure enhance efficiency and scalability. Continued investment in innovation also reinforces Ireland’s position as a competitive hub for technology and research.

Business Supports and Incentives

Several measures in Budget 2026 are particularly relevant to tech companies:

R&D Tax Credit Increase: The R&D tax credit rises from 30% to 35%, with higher first-year payments to support smaller projects. This encourages increased investment in research and development, fostering innovation and high-value job creation.
National AI Office: The establishment of a National AI Office positions Ireland as a leader in artificial intelligence, promoting safe, transparent adoption of AI technologies and attracting both talent and investment.

Special Assignee Relief Programme (SARP): The extension of SARP and the salary threshold increase from €100,000 to €125,000 make Ireland more competitive in attracting international tech talent.
Key Employee Engagement Programme: Retained until 2028, this program provides a tax-efficient approach for companies to retain key talent, supporting stability and growth within tech teams.

Sector-Specific Opportunities

Several measures are particularly relevant for the tech sector:

Budget 2026 includes targeted support for key areas intersecting with technology:

Visual Effects and Digital Games: Stimulating demand for professionals in gaming, animation, and VFX.

Foreign Direct Investment (FDI): Encouraging tech multinationals to expand operations, increasing opportunities for local talent.

Financial Services: Ongoing digitisation is likely to boost demand for fintech and cybersecurity expertise.

Conclusion

Budget 2026 brings fresh opportunities for Ireland’s tech sector. Increased investment in R&D, AI, and emerging industries gives businesses the space to innovate, scale, and attract top talent. For tech professionals, it means new roles, new skills, and new pathways to grow — strengthening Ireland’s reputation as a global tech hub.

At TechHeads, we connect ambitious companies with the talent they need to succeed. Budget 2026 adds momentum to that mission, creating more opportunities for growth and meaningful careers.

As Ireland’s tech landscape evolves, we’re proud to support the community and help shape what comes next.