Advantages Of Forming A Company In Ireland
The advantages of locating a business in the Republic of Ireland can be summarised as follows:
The recent Business Environment Ranking of the Economist Intelligence Unit placed Ireland 11th globally out of 82 countries, naming it as one of the most attractive business locations in the world. A politically stable country and respected regulatory regime.
Furthermore, Ireland is considered to be a low bureaucracy, low tax environment that is very supportive of entrepreneurs. The World Bank’s “Doing business” Report rates Ireland as the easiest place in the European Union (EU) to start a business and as having the most business friendly tax regime of any country in Europe or the Americas.
The key features of Ireland’s taxation system for companies are as follows:
- A 12.5% rate of Corporation Tax on profits generated from trading activities in the Rep. of Ireland
- A 25% Research & Development tax credit
- A ‘Knowledge Box’ regime which is OECD compliant
- An Intellectual Property regime which allows a tax write off for widely defined IP acquisitions
- Access to a wide range of Double Tax Treaties
- A very attractive Holding Company regime which includes participation exemption for gains on disposals of most shares
- An ‘effective’ rate of Zero for foreign dividends (12.5% tax rate on certain qualifying foreign dividends with flexible onshore pooling of foreign tax credits)
See further on this topic details in our section Taxation in the Rep. of Ireland, and for further details about Ireland generally, you can download a very informative brochure produced by the Industrial Development Authority by clicking the button below.