Ireland

Tax System Overview

Ireland's economic miracle was largely built on its unwavering commitment to a 12.5% trading corporate tax rate. It remains the European headquarters of choice for global tech and pharma giants.

Corporate Taxation

The 12.5% rate applies strictly to "trading" income (active business). Passive income (investment income, rental income) is taxed at 25%.

While Ireland signed on to the OECD's 15% minimum global tax rate, this only applies to massive multinationals (revenues > €750m). For the vast majority of SMEs and startups, the 12.5% rate remains firmly in place.

Ireland also offers a 25% R&D tax credit and a Knowledge Development Box (effective 6.25% rate on IP-derived income).

Personal Taxation

While corporate taxes are low, personal taxes are very high. The marginal rate (including Universal Social Charge and PRSI) can exceed 52% on relatively modest incomes. However, Ireland operates a highly favorable remittance basis of taxation for non-domiciled individuals, allowing them to shield foreign income and gains not brought into Ireland.