Investing in Ireland

Why Invest in Ireland?

Whether you are planning to break into the EU, want to grow your business into your neighbouring EU countries, or  looking to expand internationally, there is a long list of reasons you should consider investing in Ireland. We have outlined them below and they all add up to a very attractive package.

Firstly, at 12.5%, Ireland has one of the most favourable and admired corporation tax rates in the world. Coupled with our Intellectual Property (IP) rules and our generous R&D regime, investing in Ireland offers your business significant reliefs to reduce its effective tax rate. Foreign Direct Investment (FDI) is a cornerstone of Ireland's economic success and there are many factors for this, including the following:

  • As a long-standing member of the EU, Ireland is a stable, pro-business political environment;
  • Ireland provides an ideal hub for international businesses seeking a European base with access to the EU market;
  • We have a well-educated workforce and one of the youngest workforces in Europe, attracting talent from all over the world;
  • As well as being the only naturally English speaking country in the Eurozone, our multilingual skills are strong and diverse;
  • International businesses can avail of a wide range of services, including numerous grant assistance programmes through IDA Ireland, an Irish government agency established solely for the promotion of foreign direct investing in Ireland.
  • Ireland continues to be the country of choice to establish a Headquarters or Holding company for many of the top companies involved in technology, pharmaceuticals and financial services. Our track record in attracting these names speaks for itself;
  • Ireland consistently appears in the top 10 list of countries that are "best to do business in" and "that provide ease of paying tax".

 

The Irish tax regime at a glance

The Irish tax system is a transparent, legislative based, OECD compliant taxation system that offers significant reliefs, credits and exemptions from tax. If you are considering investing in Ireland the following features of our taxation systems should always form part of your decision making process:

 

The rates and credits

  • A trade Corporation tax rate of 12.5%.
  • A 6.25% Corporation tax rate through our Knowledge Development Box on qualifying IP income.
  • Generous R&D tax credit regime - a 25% refundable credit coupled with a corporation tax deduction for qualifying expenditure.

 

The reliefs

  • Ireland provides an Income tax relief called the Special Assignee Relief Program (SARP) to qualifying employees whereby they are incentivised to relocate to Ireland and will then be entitled to have 30% of their employment income, over €75k, disregarded for Income tax purposes, up to a limit of €1 million.
  • There is a relief for qualifying interest on debt used to finance or acquire qualifying subsidiaries.
  • Companies can avail of a "Start Up" relief provided by way of a credit against corporation tax liabilities in the first three years of trading up to a maximum of  €40k annually.
  • Expenditure incurred on qualifying IP can entitle you to claim capital allowances, effectively saving you the cost of purchase.

 

The international stuff

  • OECD compliant Transfer Pricing legislation.
  • Ireland has an extensive double taxation treaty network with over 72 countries worldwide.
  • Participation Exemption for Irish CGT on the disposal of qualifying Irish and foreign subsidiaries.

 

The things you don’t need to worry about

  • No Dividend Withholding Tax on qualifying outbound dividends.
  • No Stamp or Capital Duty on the incorporation of a company.
  • No restriction on the carry forward of losses.

 

How can we help?

At RSM our International tax professionals can assist you with all aspects of international taxation through a variety of compliance and advisory services. We can help you in structuring your company in the most tax efficient manner to maximise shareholder value.