Ireland: A Great Place to Do Business and Call Home
Ireland has become one of the best places in the world to do business, offering a winning combination of low taxes, a skilled workforce, and a welcoming, pro-business environment.
With a corporate tax rate of just 12.5%, it’s no wonder global giants like Google, Apple, and Pfizer have chosen to set up here. The country is a leader in industries like tech, pharmaceuticals, financial services, and medtech, making it a dynamic and innovative place to work and grow.
But it’s not just businesses that benefit - Ireland is also a great place to live. With a range of tax incentives for expatriates, a fair and progressive income tax system, and an exceptional quality of life, it’s an attractive destination for professionals and entrepreneurs alike. Add in easy access to the European market, strong government support for investment, and a vibrant culture, and it’s clear why so many companies and individuals are choosing Ireland as their base.
Business Investment Incentives & Programmes
Ireland offers several investment programmes and incentives that could be particularly appealing to foreign investors:
Tax Credits and Incentives: Ireland offers various tax credits and incentives for businesses, particularly in high-value-added sectors such as manufacturing, pharmaceuticals, and R&D. These include investment aid tax credits, cash grants, and subsidies on interest rates for loans. Ireland’s R&D tax credit regime is regarded as ‘best in class,’ offering a 30% tax credit that may be taken by way of cash payments, as well as a 10% tax rate on profits earned by exploiting the fruits of the R&;D activity (knowledge development box).
Seed Investment Scheme: Ireland’s Employment Investment Incentive Scheme (EIIS) provide income tax relief at rates of 20% to 50% for investors in start-up, early- stage and expansion-stage businesses. The businesses may raise up to €5.5m per annum, subject to a €16.5m overall cap. An individual EIIS investor may make an EIIS investment of up to €1m in any tax year and gain tax relief.
Ireland has a Start-Up Entrepreneur Programme (STEP) residence programme, available to non-EEA innovative entrepreneurs and their families to establish their businesses and reside in Ireland on a full-time basis.
A broad range of Business Development Incentives are offered by Enterprise Ireland, the State agency responsible for supporting Irish businesses in the manufacturing and internationally traded services sectors. These include a variety of grants for feasibility studies, scaling, and developing new local and export markets, as well as grants and funding aimed at supporting High Potential Start-Ups and ‘green agenda’ projects. Lower-cost financing is available to eligible businesses from a number of sources, including the Future Growth Loan Scheme as well as the Strategic Banking Corporation of Ireland.
Personal Tax & Employment Visa Programmes
Ireland has a Special Assignee Relief Programme (SARP), which is available to higher- earning executives employed abroad and sent to Ireland by their employer. The relief operates to exempt 30% of earnings over €100,000 from income tax, up to a limit of €1m.
A Van der Elst visa allows certain nationals to retain their current employment in another country, while legally residing in Ireland. This is available to non-EU/EEA nationals employed in another EU Member State and working in Ireland on a temporary basis, for up to a maximum of 12 months.
The Irish Critical Skills Employment Permit is available to non-EU/EEA skilled workers in professions where there is a skills shortage in Ireland. The list of sectors where such skills shortages arise is dynamic and currently includes workers in information technology, science, engineering, health, education, business and construction.
Ireland’s Personal Tax System
Our tax system offers several advantages that could be particularly appealing to foreign entrepreneurs and high-net-worth individuals:
Remittance Basis for Non-Domiciled individuals (‘non-doms’) whereby foreign income is taxed only if it is remitted to Ireland. This can be particularly beneficial for high-net-worth individuals who have income sources outside of Ireland.
Capital gains tax (CGT) applies to foreign capital gains of non-doms only to the extent that the proceeds are remitted to Ireland. For those gains subject to Irish CGT, a new angel investor CGT relief was introduced on 1 March 2025 that can reduce the effective rate of CGT from 33% to 16%.
Ireland does not impose any wealth taxes. Inheritance tax (known as capital acquisitions tax – CAT) may apply to in-scope beneficiaries in receipt of gifts or inheritances. The test of territoriality for this charge is residence-based, however, this potential exposure to CAT can be managed in the early years of a non-domiciled individual taking up tax residency in Ireland.
Taxation of Corporates in Ireland
Corporate Tax Rate: Ireland is known for its low corporate tax rate of 12.5%, which has attracted many multinational corporations. A lower 10% rate of corporation tax applies to profits earned from exploiting the results of Irish-based R&D activities.
Holding Company: Ireland offers a participation exemption regime, which exempts100% of the capital gains on disposal of a relevant holding. With effect from 1 January 2025, Ireland also offers a participation exemption regime in respect of dividends.
Double Taxation Relief: Ireland currently has a network of 78 DTT treaties, of which 74 are in effect. In addition, where a double taxation treaty/relief is not available, Ireland provides unilateral relief from double taxation for a number of specific income types, including foreign branch profits and foreign interest and royalties.
Business Environment and Ease of Operation
Ireland offers a business-friendly environment that is attractive to entrepreneurs. Ireland’s location at the edge of Western Europe provides access to all of Europe and the US, and provides a bridge between the 2 continents. Post-Brexit, we have seen many international businesses, and UK businesses, choose Ireland as a location for holding companies and/or operating activities due to its unique location and attractiveness.
Ireland is recognised for its skilled workforce: the World Economic Forum ranks Ireland within the top 15 countries worldwide in this regard. Ireland is now the only EU Member State where English is the main official language.
The country is recognised as one of the least complex jurisdictions for doing business, thanks to its stable regulatory environment and straightforward reporting processes. And as an EU Member, Ireland complies with high EU standards, providing businesses with a familiar and rigorous legal framework.
