Factors to consider when setting up a business in Ireland

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Ireland is an attractive location for foreign investors considering setting up operations here.

The decision as to whether your business in Ireland should be carried on through a branch, an Irish subsidiary or an Irish standalone company may be driven more by commercial considerations rather than taxation.   OSK can advise on the tax issues arising on businesses relocating to Ireland. 

Some highlights from Ireland’s taxation system are outlined below:

• Ireland’s low corporation tax rate of 12.5% (15% for certain companies) is the lowest in Europe although there are corporation tax surcharges on certain companies with undistributed profits, passive income and foreign income.  
• Certain Start-up companies are exempt from corporation tax for three years – but subject to meeting stringent conditions.
• A 25% tax credit is available on qualifying Research and Development expenditure.
• Dividends paid to shareholders not resident in Ireland but resident in the EU or a country with which Ireland has a double taxation agreement, are exempt from withholding tax.
• VAT registration threshold €75,000 for supply of goods
• VAT registration threshold of €37,500 on supply of services
• A non-resident shareholder disposing of shares in an Irish incorporated company will generally not have a liability to Irish capital gains tax
• A shareholder resident in Ireland would be liable to capital gains tax on the sale of shares subject to qualifying for entrepreneurs’ relief

For information on setting up a business in Ireland, on corporate taxation issues or taxes on employee relocations please contact Imelda Prendergast, on 00353 1 439 4200 or prendergasti@osk.ie

Further resources:

OSK guide to setting up a business in Ireland

What are the payroll implications for remote workers In Ireland?

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