Ireland is a favoured location for setting up a new business. What better proof of being a great location other than the biggest and most successful companies in the world setting up operations in Ireland? Microsoft, Pfizer, Abbott, Intel, Google, Facebook and many more organisations have significantly invested in their Irish operations making Ireland the BEST country for business globally. Here are five reasons why you should set up a business in Ireland.
- Low corporate taxation rates
Ireland has low taxation rates attracting numerous foreign companies to locate here and set up an operation. More than 1000 multinational companies have strategically chosen Ireland as their European base due to its low corporation tax rate. The 12.5% corporate tax rate is on the lowest tax rates in the world which is here to stay. Moreover, companies can benefit from a 25% tax credit against R&D (research and development) costs. Ireland also has comprehensive double taxation agreements with 72 countries, of which 68 are in effect.
Here is a quick list of Irish Business Taxes:
- Trading income 5%
- Qualifying dividends 5% (0% with FTC)
- Passive income 25%
- R&D incentive 25% (37.5% relief)
- CGT participation 0% (other 33%)
- Jobs and talent
Ireland is a member of the European Union and the Eurozone. What benefits does this bring? European citizens can easily move within the European Union to work and live. Ireland also has a special tax relief programme for employees who relocate here commonly known as SARP (Special Assignee Relief Programme). Apart from that Ireland is the ONLY English speaking country in the Eurozone with great talent and highly skilled labour. Ireland has been ranked 1st globally for education and for availability of skilled labour. 48% of 25-34 year olds are third level qualified and 54% of the workforce in Ireland is under 35 years of age.
- Holding company benefits
Ireland has developed a reputation as a key location for the establishment of international holding companies. The benefits of setting up a holding company in Ireland are:
- Tax exemption for domestic and foreign gains (EU & DTA) on sales of trading subsidiaries
- Tax exemption for Irish dividends with effective tax exemption for foreign dividends (FTCs)
- Extensive domestic withholding tax exemptions
- No thin capitalisation or CFC rules
- IP Exploitation Benefits
The Irish Government supports Ireland’s ‘smart economy’ and offers organisations great tax incentives in relation to intangible assets making Ireland a favourable location for businesses to invest in IP (Intellectual Property). The benefits of investing in Intellectual Property in Ireland are:
· Amortisation for IP acquired for trade purposes
· Knowledge Development Box incentive which can reduce the tax rate on qualifying profits to 6.25%
- Irish Economy and Innovation
The Irish economy is currently growing at approximately 2.5-3% per annum making it one of the fastest growing countries in Europe. The rate of inflation continues to trend below the EU average, productivity is constantly increasing and Ireland’s export growth is solid. Moreover, the collaboration between pioneering scientists and industry researchers in Ireland makes it top of the class in terms of world-class innovation.