Currently, there are more than a thousand international companies in Ireland, with the interest in foreign investors growing. In Ireland, there are no restrictions in business for foreigners. A company can be 100% owned by foreigners. Ireland currently offers more than favourable business conditions. With its low tax rate, Ireland ranks among countries with the lowest tax rates in the world. There is a so-called double taxation avoidance, which ensures a 0% withholding rate. The tax system, combines domestic tax rates with EU directives and double taxation and makes Ireland one of the most desirable business destinations in the world.
When founding a company in Ireland, the business gains a number of competitive advantages, including:
- Low tax rates.
- Entrepreneurship can be carried out internationally.
- Shareholders liability is limited to the amount of the registered capital.
- The company name is protected. No one else can use the name.
- There are clear and comprehensibly simple rules on how a company must work (Memorandum & Statutes).
- The company is perceived as a separate legal entity and is not associated with those who own it
Ireland for business!
- Strong economy. We all know with some certainty that the country was hit hard by the 2008 economic crisis. Despite the recession, the Irish economy is considered to be very open, with a stable regulatory environment based on English law. This means that if English laws are known to you and your employees, Ireland can become a real catch for you!
- The basic corporate tax rate is 12.5%, which is one of the lowest rates in Europe. You’ll be safe in Ireland. However, this rate applies only to business profits, and in the case of profits from non-commercial activities this rate is increased to 25%.
- The basic rate for withholding tax on dividends is 20%. Given the existence of double taxation agreements, it can be reduced to zero. If the company exceeds the €75,000 profit limit for products or €37,000 for services, the entity is required to register for Value Added Tax, which is 23%.
- The country is the gateway to Europe for many US companies in the IT sector. These include Apple, Facebook, and many others.
- The most common legal form is Private Limited Company (Ltd.), which is similar to our limited liability company.
- When establishing a company in Ireland, only one shareholder and two directors are required. You should bear in mind that one of them must be a citizen of a country that belongs to the European Economic Area.
- It’s also necessary to have a secretary, who may be a non-resident.
- Minimum share capital in Ireland is €1, virtually everyone can start a business in Ireland, and no major capital is needed.
- But be prepared for paperwork, this is mandatory with an Irish company. However, your business won’t bring any major problems. The company must keep accounts, Irish companies are audited.
- The company must have an Irish address (it must be a physical address) and hold a general meeting every year.
Due to the 2008 economic crisis, during the recession, Ireland realised the importance of the business environment for the economy and currently offers strong business support and attractive incentives for investors.
- Within the Trading Across Borders category, assessing foreign trade barriers, Ireland ranked 5th. It’s mainly characterised by lower time requirements for import and export of goods. The administrative burden associated with it is also lower than the OECD average, with costs only slightly higher.
- According to the Paying Taxes indicator, Ireland ranked 6th. The amount of time required for the preparation, recognition and payment of corporation tax, VAT, etc., including taxes on wages and social security contributions, is a total of 80 hours a year, which is more than twice lower than the OECD average.
Yes, this is Ireland! It may sound like an unimaginable utopia for you.
- Irish Private company limited by shares : Ltd
- Presentation of financial statements: YES
- Submitting an annual report: YES
- Mandatory company audit: YES
- Required tax return: YES
- VAT - Basic: 23%
- Possibility to use Double Taxation Agreements: YES
- The need for two directors, at least one must be a resident of the EU
- One shareholder required
- Exemption from corporation tax for 3 years for a taxable profit of less than € 320,000
- Corporation Tax Rate: 12.5% is a tax on business profits, 25% is from non-commercial profits and 10% is for manufacturing companies.
- Increase of tax on capital gains to 30%
PRIMARY TAX IN IRELAND:
- Income tax / Standard rate: 41%, Reduced rate: 20%
- Corporation tax / Standard rate: 12.5%, Special rate: 25%
- Value added tax / Standard rate: 22%, Reduced rate: 4.8% and 13.5%
- Capital gains tax / Standard rate: 25%, Reduced rate: 40% and 0%
- Deposit interest retention tax / Standard rate: 30%, Reduced rate: 0%
- Stamp duty / Standard rate: 9%, Reduced rate: by type 0% -12%
- Capital acquisitions tax / Standard rate: 25%, Reduced rate: 0%