Ireland (EIRE) is a Western European country occupying most of the island of Ireland in the North Atlantic Ocean. It occupies 26 of the 32 traditional counties, the other six forming Northern Ireland, one of the four constituent nations of the United Kingdom.
Ireland is a parliamentary republic whose two official languages are Irish and English.
Currency: EURO (ISO Code: EUR)
Ireland is one of the most attractive jurisdictions to install a company oriented towards the assembly, packaging or preparation of products destined to be sold in other countries of the European Community.
Since the abolition of the status of Non-resident corporations in the United Kingdom in 1988 Irish law societies have been increasingly used as an alternative.
However, since the entry into force on 1 October 1999 of the Irish Finance Bill 99, which had been ratified in February the following year, the Irish Government has decided to give a “halt” to the creation of Non-resident companies oriented only to international trading, and thus bringing no direct advantage to the development of the country itself.
The 12.5% tax rate can only be guaranteed to companies that are recognized as “managed and controlled” in Ireland
So they must have Irish Directors and have the major part of their activities in the Country itself.
If the Irish revenue Commissioners determine that this is not the case, the company may be applied a rate of 25.0%
Some mechanisms leveraging the many tax treaties signed by Ireland reduce this rate (Effective tax rate or ETR) to less than 4% of international profits, but these are relatively complex -we mean costly- and can be set up only for businesses of a certain size.
We do not recommend them for a standard use of a simple trading company.
We have a number of solutions that seem more appropriate to us in these cases.
If you would like more information on this topic please consult the “jurisdictions” pages of our website. If you have any doubt about the most suitable location for your projects, do not hesitate to contact us and we will select an alternative Jurisdiction and provide a detailed offer with an estimation of costs.