Starting a business in
🇮🇪Ireland
Checked November 4, 2026 · How we score
Corporate tax
12.5%
Top income tax
40%
Setup from
$1,500
all-in, first year
Time to form
10 days
can be done remotely
Taxes in Ireland
| Corporate income tax | 12.5% 12.5% on trading income, 25% on passive income; 15% under Pillar Two for groups with revenue of EUR 750m or more. Knowledge Development Box 10% and 30% R&D credit (a rise to 35% from 2026 was announced). Start-up relief exempts CT on early profits. |
|---|---|
| Personal income tax (top) | 40% 20% to about EUR 44,000 and 40% above (2025/26). With USC (up to 8%) and PRSI (4%) the effective top marginal rate is around 52%. A foreign-earnings deduction and remittance basis for non-domiciled residents apply in some cases. |
| Tax system | Worldwide income |
| Capital gains tax | 33%33% standard CGT; 10% entrepreneur relief on the first EUR 1m of gains for qualifying business disposals. |
| Dividend withholding (non-residents) | 25% |
| VAT / GST | 23% |
| Social security | Employer PRSI 11.25% (rising in October 2026), employee PRSI 4%. Dividend withholding of 25% is reduced to nil for EU/treaty residents who provide a declaration. |
Forming a company in Ireland
| Usual entity | Private company limited by shares (LTD) |
|---|---|
| Minimum capital | $1 |
| Setup cost (all-in) | $1,500–$4,000 |
| Annual running cost | $3,500–$9,500 |
| Time to incorporate | 10 days |
| Form remotely as a foreigner | Yes |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
The Immigrant Investor Programme closed in February 2023 and there is no digital nomad visa. Non-EU founders use the Start-up Entrepreneur Programme (STEP, EUR 50,000 funding) or employment permits. Irish company law needs an EEA-resident director or a EUR 25,000 bond.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
12.5% trading rate
Low trading-income corporate tax, with a 15% Pillar Two top-up for large multinationals.
Knowledge Development Box
10% effective rate on qualifying income from IP developed in Ireland.
Start-up company relief
Corporation tax relief for the first three years of a new trade (up to EUR 40,000 of CT per year), extended to new trades starting through 2030.
Remittance basis for non-domiciled residents
Non-domiciled residents are taxed on foreign income only when remitted to Ireland.
Pros and cons
Why founders pick Ireland
- 12.5% trading tax rate with 10% Knowledge Development Box
- English-speaking EU jurisdiction with common law
- Access to EU single market and Stripe/Payments
- Strong treaty network (70+ treaties)
Watch out for
- EEA-resident director or EUR 25,000 bond required
- Annual running costs are high (nominee director, secretary, accountant)
- Often labelled a corporate tax haven by NGOs; scrutiny rising
- 25% passive income rate and 25% dividend withholding for many recipients
- High personal tax and 23% VAT
Best for: Tech and IP-heavy businesses selling into the EU · Founders who can use an EEA-resident director · Companies planning outside investment
Ireland: common questions
Can a non-EU resident open a company in Ireland?
Yes, but at least one director must be an EEA resident, or the company must put up a EUR 25,000 bond. Many founders use a nominee director from a corporate service provider, which adds roughly EUR 1,500–3,000 per year.
What is Irish corporation tax in 2026?
12.5% on trading profit, 25% on passive income, and 15% for groups within Pillar Two (revenue of EUR 750m or more). Start-ups may also claim relief on the first three years.
Is Ireland a tax haven?
It is frequently included in lists of corporate tax havens because of its low 12.5% rate and the historic 'Double Irish' structure, but it is an EU/OECD member that applies full transparency and Pillar Two. It is not on any EU or OECD blacklist.
How long does it take to set up an Irish company?
The Companies Registration Office typically files a private limited company in 5–10 business days. The CRO fee is about EUR 50 online; agent, director and registered-office costs make the first year EUR 1,500–4,000.
Do Irish companies need an audit?
Small companies (turnover up to EUR 12m, balance sheet up to EUR 6m, up to 50 employees) are exempt from audit, but still file accounts annually and must hold board meetings.
Sources
Compare Ireland
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.