Ireland
Are you looking to expand into the EU? Then, Ireland is an ideal first step. The ease of setting up, an advantageous tax regime, a deep talent pool, and an established ecosystem of headquartered multinational companies all work in your favor.
At a Glance
There’s no local bank account needed.
Yes, local representation is required.
The standard payroll frequency is monthly/weekly.
No, local registration isn’t required.
The employer taxes are 8.8% – 11.05% of gross salary.
Good to Know
All Irish companies must have an EEA-resident director. If not available within the organization, the company can either: (1) engage a local as a nominee director; (2) take out a S137 insurance bond to cover fines and penalties by the Irish Companies Registration Office (CRO) or tax authority; or (3) apply for an exemption.
Employers must contribute to social security (PRSI) in Ireland. The rate for most employees is 11.05% of their gross salary. Starting in 2024, Ireland will introduce pension auto-enrollment; employers will be required to contribute 1.5% of gross salary. Both rates are low in an EU context.
To be a tax resident in Ireland, companies must be managed and controlled from there. There are no set criteria, so factors like board meeting locations are very important. Ireland has an extensive tax treaty network, and tax withholding on dividends to foreign group companies is typically nil.
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Opening Bank Account
Although having an Irish bank account is not a legal requirement, the lack of one can create logistical difficulties, particularly with the Revenue office (tax authority). Opening an account with a local bank can take months; however, attendance in person by the directors can expedite the process.
Managing Payroll
Ireland operates a real-time reporting payroll system, which means that employees should not be paid until the associated filings are made to the Revenue office. Corporate tax registration is straightforward but there can be delays in obtaining PPS (social security) numbers for non-nationals who have not worked in Ireland.
Understanding Rights
As with any EU jurisdiction, employees have strong protections under the employment law framework. It is important employers understand those rights (e.g. around maternity leave, sick pay, redundancy entitlements) from the start and ensure that proper procedures are implemented and documented.
Next Steps
You don’t know what you don’t know — and that’s where our local expertise comes in. Our expert-led managed services and technical consulting are designed to help you thrive in Ireland and throughout the world, regardless of regulatory complexity.
We back up our expertise with GateWay, our pioneering global expansion management system (GXM) that empowers you to effortlessly and compliantly manage your international footprint. This platform is your one-stop-shop for global growth.
“While local vendors tend to primarily care about their sliver of the business, HSP Group is, as the single provider, fully invested in the success of the entire organization.”
Head of Finance and Operations at a fast-growing FinTech