Tax in Ireland
Key elements of Ireland's attractive tax regime include:
- 12.5% corporate tax rate
- Special Assignment Relief programmes for relocating executives
- 68 bilateral tax treaties
- Extensive double taxation treaty network and EU Directives
- Refundable 25% R&D tax credit for relevant expenditure
- Tax relief for R&D employees
- Attractive holding company regime
- Effective zero tax for foreign dividends
Download our brochure guide for in depth information on these topics and more.
Competitive tax regime - a snapshot
| Tax type | Rate | More information |
| Corporate tax rate | 12.5% | Trading income (including active financing, leasing, licensing, central entrepreneur, manufacturing, procurement and R&D). Dividends from trading company in EU/DTA. Dividends from trading companies in non-DTA (where listed) and countries with which Ireland has ratified the Convention on Mutual Assistance on Tax Matters. |
| Corporate tax rate | 25% | Passive income (33% for certain capital gains). |
| Capital gains tax | 0% | Where capital gains tax participation exemption applies. |
| Capital duty | 0% | No capital duty on the issue of shares. |
| Stamp duty | 1% | Applies to transfers of Irish registered shares (exemptions for group transfers and certain assets such as IP). |
| Stamp duty | 2% | Applies to transfers of commercial property. |
| Treaty network | 68 signed | Treaties with all major business jurisdictions (including China, Japan, India, Hong Kong, Singapore and South Korea). |
| Witholding taxes | Broad range of domestic exemptions from dividend, interest and royalty withholding taxes. | |
| Value added tax (VAT) | EU VAT regime. | |
| Individual rates | 20% / 41% income tax rate bands plus USC at bands between 2% - 10% and 4% PRSI, but incentive for executives to relocate to Ireland - reduction in taxable income by 30% on remuneration between €75,000 and €500,000 subject to conditions. In certain instances a company’s R&D tax credit may be surrendered against key employees’ income tax (subject to the credit not reducing the employees’ effective tax rate below 23%). | |
Contact us
Conor Hynes
Tax Partner
Foreign Direct Investment
T: + 353 1 417 2476
