Business Setup in Ireland: GEOS Guide for Global Expansion

This is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

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The Emerald Isle’s future looks strong. With projected growth of 4.0% in 2025 and 3.6% in 2026, the country is on an upward trajectory. And multinational companies and foreign investors have taken notice.

Foreign companies play a crucial role in the Irish economy, with significant investment and a strong presence, particularly from U.S.-controlled multinationals.

A strong tech scene has put Ireland on the map as a global innovation leader, and its specialized tech clusters continue to grow. Keep reading to learn why Ireland is a smart choice for businesses looking to expand globally.

Why Should You Expand to Ireland?

If you’re taking your business beyond your borders, Ireland should be at the top of your list. It’s made huge strides in recent years and is regaining its status as the Celtic Tiger.

A Global Business Hub with Strategic Advantages

Ireland is open for business. With a Global Subsidiary Index score of 74, it ranks among the easiest places to do business. 

Ireland acts as a bridge between Europe, the UK, and the US by offering direct access to the world’s largest trading bloc. This was especially evident after Brexit when many financial firms relocated to Ireland to maintain EU access.

It’s clear why, too. Ireland has a highly developed financial system, earning a GEOS Financial Infrastructure Score of 5/5. In 2023 alone, the financial sector reached €8.1 trillion in assets, with over 12,000 regulated entities. A key component of this system is the company limited by shares, which provides a distinction between the company’s finances and its shareholders, who maintain limited liability. It keeps gaining momentum, too, and the numbers speak for themselves:

• Investment funds now make up 55% of financial sector assets, showing strong growth.
• The Irish Stock Exchange, now part of Euronext, attracts international investors. Its share of cross-border financial assets jumped from under 0.5% in the early 1990s to 5% in 2023.
• Ireland’s asset management industry oversees more than €5.6 trillion in funds, cementing its position as a global financial hub.

According to Reuters, over 300 financial services companies operate in Ireland, including 20 of the top 25 global financial institutions. The industry is growing at full speed. In fact, the country is one of the world’s largest exporters of financial services and home to major fintech players, such as:

• Mastercard’s European Technology Hub
• Citi’s Global Innovation Lab
• BNY Mellon’s Digital R&D Hub
• Stripe
• Fenergo
• Wayflyer
• Daon

Overall, Ireland’s tech sector is going strong. It showed promise in the early 2000s when Google set up its European headquarters in Dublin and is now a major hub for tech giants and startups. The Silicon Docks, the heart of Dublin’s tech scene, is home to 16 of the top 20 global tech companies, including:

• Amazon
• Meta
• HubSpot
• Salesforce

Competitive Tax & Business Incentives

Ireland keeps taxes low for businesses. The corporate tax rate is 12.5%, one of the most attractive in Europe for companies outside the OECD’s global minimum tax framework. Combined with the Central Bank of Ireland’s strong oversight, this creates a stable and investor-friendly market. Historically, Irish corporation tax rates have been structured to attract foreign investment, significantly impacting employment and overall tax receipts.

The country also rewards innovation. The Finance Bill (No. 2) 2023 increased the R&D tax credit from 25% to 30% for qualifying expenditures from January 1, 2024. Companies under Ireland’s tax system can now claim a 30% credit on eligible R&D work. If you’re a part of a research-driven business, this is a win. Investment income in Ireland is typically subject to corporation tax or income tax on the full gross amount, with necessary adjustments to determine taxable profits.

A stable legal and regulatory framework under the Companies Act 2014 helps make sure businesses are well protected. On top of that, Ireland has tax agreements with 75 countries, which makes it easier for businesses to manage cross-border operations and avoid double taxation.

Hiring costs are another plus. Ireland’s Employer Payroll Cost Score is 5/5, meaning businesses spend less on payroll than in many other EU countries. Between the low taxes, strong incentives, and manageable labor costs, Ireland makes it easy for companies to grow in Europe.

Skilled Workforce & Favorable Hiring Regulations

Good talent is hard to find, but not in Ireland. The country has a highly skilled, English-speaking workforce and the youngest population in Europe. A third of people are under 25, and nearly half are under 34. They’re educated, too. Over 60% of people aged 25-34 and 58% of those in Ireland’s education system rank among the top 10 globally. 

Not only that, universities in Ireland are shaping programs to match industry needs and keeping graduates job-ready, as a result. This is part of a more significant push from the government for stronger skills development. By 2026, it plans to have the best education and training system in Europe. The result will make sure businesses have a strong talent pipeline.

Along with skilled, educated talent, Ireland offers straightforward hiring regulations, with an Employment Law Complexity Score of 10/10. Businesses can recruit and manage employees without red tape. Labor disputes are also rare, reflected in a Union Complexity Score of 5/5. With skilled workers and easy hiring, Ireland is a great spot for expansion.

How to Set Up a Business in Ireland

If you’re considering opening new doors in Ireland, you have options. 

Choosing the Right Legal Structure

You can choose from a private limited company, a designated activity company, a public limited company, a sole trader, or a branch office. A limited liability company is recognized as a separate legal entity, providing a layer of protection for its owners in legal matters and financial obligations, as shareholders’ liability is restricted to their unpaid shares.

A private company limited by shares is a common form of trading entity in Ireland. The liability of shareholders is limited to the amount they have paid up in share capital, and it is prohibited from inviting the public to subscribe for shares, which differentiates it from other company types.

Private Limited Company (LTD)

An LTD is the most common type of company in Ireland. It’s simple, flexible, and easy to manage. Unlike other company types, it can have just one director, but if so, it must appoint a separate company secretary. It also doesn’t need a memorandum of association with a specific business purpose.

• Pays 12.5% corporate tax on trading income.
• No minimum share capital required.
• Must file an annual return with the Companies Registration Office (CRO).
• Financial statements must follow Irish law.

Designated Activity Company (DAC)

A DAC is more structured than an LTD. It needs to have a defined business purpose outlined in a memorandum of association. This makes it a better fit for companies that need clear activity restrictions.

• Pays 12.5% corporate tax on trading income.
• Needs at least two directors.
• Must maintain an authorised share capital (ASC).
• Has more reporting requirements than an LTD, including annual filings and financial statements.

Public Limited Company (PLC)

A PLC is the only company type in Ireland that can list shares on a stock exchange. It’s designed for larger businesses that want to raise capital from the public.

• Pays 12.5% corporate tax on trading income.
• Needs a minimum share capital of €25,000, with at least 25% paid up before starting business.
• Must have at least two directors and a company secretary.
• Requires strict financial reporting, including audited statements.

Sole Trader

A sole trader runs a business as an individual. It’s the simplest structure, but the owner is personally liable for debts. While it has lower administrative costs, individuals also take on higher financial risk.

• Pays personal income tax (up to 40%) on business profits.
• Must register with the Irish Revenue Commissioners and file an annual tax return.
• No need to file accounts with the CRO.
• Fewer regulatory requirements than company structures.

Branch Office (External Company)

A foreign company can operate in Ireland without setting up a new legal entity by opening a branch office. The branch needs to mirror the parent company in structure and reporting.

Foreign companies play a significant role in the Irish economy, with U.S.-controlled multinationals being particularly dominant. External companies must register with the CRO within 30 days of establishment.

• Must register with the CRO within 30 days of establishment.
• Pays Irish corporate tax only on profits generated in Ireland.
• Must file annual returns and parent company financial statements.
• Any changes in the parent company must be reflected at the branch level.

Incorporation & Compliance Essentials

• Registering a company in Ireland follows a clear process. The steps depend on the business structure, and each type has its own requirements. Post-registration obligations also vary. The Companies Registration Office (CRO) usually processes applications in 5 to 10 days as long as everything is in order. Irish company law provides flexibility in the formation and governance of companies, allowing for alterations in the articles of association and categorization of shares into different classes.
• With a Political Risk Score of 4/5, Ireland has stable governance and business-friendly policies, making it an attractive market for expansion. However, businesses should still be mindful of potential risks. For one, Brexit is still having an effect on trade, and both new foreign investment screening laws and global tax reforms could impact investment.
• Ireland’s Pension & Union Complexity Score is 5/5 due to fewer pension and union rules than many EU countries. Pension requirements are simpler than in France or Germany, for example, and labor laws are flexible.

Financial & Banking Considerations

Ireland has a top Financial Infrastructure Score of 5/5 due to its efficient banking system and seamless cross-border transactions. Major banks like AIB, Bank of Ireland, and Ulster Bank offer business accounts, loans, and treasury management. As a Eurozone member, Ireland offers fast payments via SEPA.

An Irish company can benefit from various tax-related contexts, including specific tax regimes related to intellectual property, which help achieve lower effective tax rates and optimize tax strategies.

Meanwhile, fintech firms provide digital banking and alternative financing options. Businesses can also secure funding via Enterprise Ireland grants, venture capital, and EU programs. Overall, Ireland has a solid financial infrastructure.

Employer Payroll Contributions

Payroll contributions are cost-effective for companies hiring in Ireland. As a result, the country has an Employer Payroll Contribution of 5/5. Here’s what to expect, according to PwC.

Employer PRSI Contributions

• Employers pay 11.15% PRSI on salaries until 30 September 2025, increasing to 11.25% from 1 October 2025.
• PRSI applies to wages, non-cash benefits, and stock-based compensation.
• Some directors (Class S1) are exempt.

Employee PRSI Contributions

• Employees pay 4.1% PRSI, rising to 4.2% from 1 October 2025.
• Those earning under €352 per week don’t pay PRSI.

Universal Social Charge (USC)

• USC applies to gross income before pension deductions.
• Rates range from 0.5% to 8%, depending on income.
• Employees earning €13,000 or less per year are exempt.
• Self-assessed income over €100,000 is taxed at 11%.

Hiring costs in Ireland include more than just employees’ base salaries. Employers also need to budget for payroll taxes like PRSI, which will rise slightly in October 2025. But compared to other markets, these costs are still reasonable.

Value-Added Tax (VAT) Overview

You can’t escape taxes, but you can plan for them. VAT is a key tax for businesses in Ireland. The standard rate is 23%, but some goods and services qualify for lower rates of 13.5%, 9%, or 4.8%. Certain industries, like finance, healthcare, and education, are VAT-exempt.

If your business is VAT-registered, you can reclaim VAT on purchases, which helps with costs. Imports from outside the EU also come with VAT, so planning ahead is important. Understanding the rules keeps budgeting simple and avoids compliance issues.

Stamp Duty Overview

Businesses expanding to Ireland need to factor in stamp duty when buying property. The rate for commercial properties, including offices and industrial sites, is 7.5%.

If you buy land for development, you may qualify for a partial refund under the Stamp Duty Residential Development Refund Scheme, but you must meet certain building requirements. Budget 2025 adjusted rates for high-value residential properties, but the 7.5% rate for non-residential property stays the same. Knowing these costs upfront helps with budgeting and tax compliance.

Things To Consider When Expanding into Ireland

Expanding into Ireland can be a smart move, but you’ll want to know what you’re up against. Here’s what to keep in mind.

Immigration & Work Permits for Non-EU Employees

With a perfect Immigration Complexity Score of 5/5, Ireland keeps immigration as simple as possible. However, there are still key criteria to keep in mind. For example, 

• Work Permits Required: Non-EU hires need one
• General Employment Permit:
  • Valid for up to 2 years (renewable)
  • Minimum salary: €34,000 (some exceptions)
• Labour Market Needs Test: Required in most cases
• 50:50 Rule: At least half of the workforce must be from the EEA (waivers available)
• Long-Term Residency: Possible after 5 years

Cost of Living & Office Space

Dublin isn’t the only place to do business in Ireland. It’s the capital and main hub, but high costs can be a challenge. Fortunately, cities like Cork, Limerick, and Galway offer strong talent pools and a lower cost base.

• Cork has over 40,000 students and around 50 tech firms in ICT and software development.
• Limerick is home to major firms like Dell and Analog Devices.
• Galway has a growing medtech sector with about 20 companies forming a specialized cluster. A $327 million Dexcom facility in Athenry has strengthened its role in MedTech and advanced technologies.

It’s clear that companies expanding into Ireland have a range of options beyond the capital.

Regulatory & Compliance Risks

There are always regulatory and compliance risks to expanding beyond your borders. To stay on the right side of the law, you need to consider everything from data protection to corporation tax and employment laws. 

GDPR Compliance

If your business handles personal data in Ireland, GDPR rules apply. You need a valid reason to collect and process data, like consent or legal requirements. If you’re transferring data outside the EU, you’ll need Standard Contractual Clauses (SCCs). Businesses outside the EU that handle Irish data must appoint an EU representative.

Breaking GDPR rules can be expensive. Fines can reach €20 million or 4% of global turnover. To stay compliant, review your policies, train staff, and appoint a Data Protection Officer (DPO) if needed.

Corporation Tax Reporting

Companies in Ireland must report and pay corporation tax based on their financial year. Corporation tax returns are due within nine months after the period ends, no later than the 23rd day.

Employees and other officeholders in Ireland are subject to Irish income tax on their income and benefits. The tax rates are progressive, and programs like the Special Assignee Relief Programme (SARP) offer tax relief for certain individuals working temporarily in Ireland.

Large companies make two preliminary corporation tax payments – one six months in, the other 31 days before the year ends. Small companies make one payment, due 31 days before the end. The final balance is due when filing the corporation tax return. Late filings can mean surcharges and loss restrictions. Late payments rack up interest at about 8% per year.

Employment Laws & Workplace Rights

Irish labor laws apply to any business hiring employees. Employers must:

• Provide a written statement of employment terms within five days.
• Pay at least €13.50 per hour and issue payslips.
• Limit working hours to 48 per week.
• Offer four weeks of paid annual leave plus public holidays.
• Provide maternity, paternity, and parental leave as required by law.

Health & Safety Requirements

Employers must follow Health and Safety Authority (HSA) regulations. That means:

• Training employees on workplace safety.
• Providing protective equipment at no cost.
• Reporting workplace accidents if an employee misses three or more workdays.

Ignoring these rules can lead to fines or legal trouble. Before expanding, it’s smart to get legal and tax advice.

International Tax Considerations

Ireland’s corporate tax system is designed to be attractive to foreign investors, offering a range of tax incentives and reliefs. The standard corporation tax rate on trading income is 12.5%, one of the lowest in Europe, making it a favorable destination for multinational companies. Additionally, Ireland has a network of double taxation agreements with over 75 countries, which helps to reduce the risk of double taxation on corporate profits.

However, navigating international tax considerations can be complex. Businesses must ensure compliance with all relevant tax laws and regulations, including transfer pricing rules and anti-avoidance measures. Proper tax planning and understanding the implications of double taxation agreements can optimize tax efficiency and minimize liabilities. Consulting with tax professionals can help businesses stay compliant and take full advantage of Ireland’s tax benefits.

Is Ireland the Right Fit for Your Business?

With a Global Subsidiary Index score of 74, Ireland is one of the easiest places to expand globally. Its business-friendly environment makes it a smart choice. And with GEOS, breaking into the Irish market is easy.

We handle entity setup and compliance so you can focus on growth. From registration to corporation tax compliance, we take care of everything. No guesswork. No delays. We confirm country-specific requirements and manage onboarding. And once your entity is set up, we keep it compliant by:

• Managing corporation tax filings, audits, and regulatory updates to ensure ongoing compliance.
• Simplifying payroll, HR processes, and local employment law requirements.

We offer predictable costs and a single point of contact. There’s no need to juggle multiple providers. Our platform centralizes everything, and our AI assistant, Geovanna, keeps compliance on autopilot. It’s always on, so you don’t have to be. 

Take your business global with GEOS. Let’s talk strategy – contact GEOS for a customized expansion strategy. And in the meantime, learn how 50 countries compare across 40+ key factors. Get the Global Subsidiary Index to make informed decisions.

This article does not constitute legal advice.