Is Ireland a Promising Business Destination in Europe

1. Is Ireland a Promising Business Destination in Europe? When it comes to setting up a company, its location plays a critical role in the success of a business. So, if you are wondering which country is best for business setup, we recommend you to choose Ireland. Why? Ireland is one of the most sought-after business destinations around the world. In fact, the biggest and most successful companies of the world such as Google, Microsoft, Pfizer, Abbott, Facebook, and Intel have expanded their operations and presence in Ireland. But this is not enough to come up with the decision of Irish company formation. So, we are going to share more reasons to help you know why setting up a business in Ireland is best for you. Low taxation rates The low tax rates of Ireland attract a large number of foreign companies, investors, and entrepreneurs to expand or invest in the country. More than one thousand multinational companies have chosen Ireland to create a European presence. It has only 12.5% corporate tax rate, which is amongst the lowest tax rates in the world. Besides, companies can also take advantage of 25% tax credit against the cost of Research and Development (R&D). In addition, it also has signed double tax treaties with around 72 countries. The tax rate on trading income and qualifying dividends is 5%. In the case of FTA and CGT participation, the tax rate is 0 per cent. The tax rate on passive income is 25% while RD incentive is 25%. An Abundance of Jobs and Talents Being a member of the European Union and Eurozone, Ireland allows its citizens to freely move within these areas to work and live. It also offers a special tax relief programme, called Special Assignee Relief Programme, for employees who

2. relocate to the country. What’s more, Ireland is the only English speaking country in the Eurozone that have an abundance of great talent and highly skilled labour as it ranks high globally in terms of education and availability of skilled labour. Special Benefits for Holding Companies Ireland is considered the key location for establishing international holding companies as it offers an array of benefits, such as: No tax on domestic and foreign profits (EU & DTA) on sales of trading subsidiaries No tax on Irish dividends with an effective tax exemption for foreign dividends (FTCs) No thin capitalization or CFC regulations Tax exemptions for domestic withholding Benefits for Intellectual Property (IP) The Irish government greatly focuses on creating the “smart economy” stronger and hence offers businesses lucrative tax incentives for intangible assets. This makes Ireland the most desirable location for businesses to invest in their intellectual property. Apart from offering amortisation for IP acquired for trade purposes, its Knowledge Development Box incentive reduces the tax rate on eligible profits up to 6.25%. Strong and Flourishing Economy The Irish economy is considered to be one of the fasted growing countries in Europe, while the inflation rate continues to remain below the EU average. The productivity is continuously increasing, and the export growth is also substantial. Besides, the collaboration between pioneering scientists and industry researchers brings Ireland into the spotlight in terms of innovation. Thus, Irish company formation will be one of the best decisions you can make when it comes to expanding your existing business or launching a new brand. Source: https://profincom.eu/corporate/