What taxes are paid in Ireland?

Ireland is a low-tax jurisdiction, which sounds very attractive to entrepreneurs. However, before opening a legal entity here, it is necessary to understand what taxes individuals and business entities pay in Ireland.

The fiscal system of the country is arranged in such a way that a whole list of benefits is provided for individuals:

• non-residents transferring their income to foreign bank accounts are exempt from payments in favor of the state;
• members of the creative professions are completely exempt from interest payments on profits amounting up to 40,000 euros.

Obligations to the fiscal authorities come to non-residents after 6 months of residence in the country during a year. In subsequent years this interval increases to 280 days.
Companies have a legal right not to make payments if the head office is located outside Ireland.

Income tax in Ireland is based on the payer's marital status:

• the unmarried pay 20% from €32,000 and 41% of their subsequent income;
• the married are required to deduct 20% from EUR 65,000 and 41% of the profits in excess of the amount mentioned.

Individuals also pay other taxes:

• stamp duty is 1-12%;
• for real estate - 0.18-0.25% of the object value;
• for inheritance and donation - 33%;
• social insurance - 10.75% of earnings.

In addition to the above deductions, there is also a universal social tax, depending on the amount of annual income (in euros):

• up to 10000 – 2%;
• up to 16000 – 4%;
• more than 16000 – 7%.

If you have a medical card, the rate drops to 4%.

Income tax is the main tax for small firms and large corporations. It is accrued depending on the activity of the organization:

• trade – 12,5%;
• other sectors – 25%.

There are also other payments for legal entities:

• VAT – 23% (there are also reduced rates – 13,5%, 9% and 0%);
• capital increase tax – 33%;
• source tax – 20%
• state fee for filing an annual report – 20-40 EUR.

During the reporting period, the supervisory authorities take the financial year following which the declaration was filed.

If you still have questions, please contact our experts. They will tell you more about mandatory deductions and give you free advice on other topics.

We are also ready to help you buy a ready-made company and provide you with a choice from the register of suitable organizations. Our specialists have the experience and expertise to set up a company in Ireland, even remotely.

With us, your international business will grow successfully!