While Dublin’s culture, skilled workforce and globally connected business environment make it a magnet for investment, Ireland’s pro-enterprise tax regime is a core pillar of its global appeal.

With one of the lowest corporate tax rates in the world and a range of innovation-driven incentives, Ireland has a uniquely attractive landscape for international companies scaling in Europe.

Ireland’s favourable tax regime

Corporation tax in Ireland

Ireland’s 12.5% corporate tax rate on trading income is among the most competitive globally, surpassed only by a few jurisdictions like Switzerland and Hungary. Importantly, Ireland has implemented the OECD’s global minimum 15% tax rate for companies with revenues exceeding €750 million, ensuring transparency and alignment with evolving international standards.

Unlike many other countries, Ireland has no local or regional corporate income taxes, making compliance simpler for companies operating here.

R&D tax credits

Ireland offers one of the most generous research and development (R&D) tax reliefs in Europe. The R&D tax credit is set at 35% from 2026, meaning eligible companies can claim €35 back for every €100 spent on qualifying R&D. The first-year payment minimum threshold has also been increased €75,000 to €87,500, offering further support for smaller R&D claims.

These incentives are backed by strong IP protections, Dublin’s access to world-class research institutions, accelerators and a highly skilled talent pool, all creating an ideal environment for R&D-led growth.

Knowledge Development Box

The Knowledge Development Box, or KDB, allows companies to apply a reduced 10% tax rate on income derived from IP that has been developed through qualifying R&D activity. This applies to patents, software, and other innovations, including those from SMEs. The KDB has been extended to 2027, giving businesses greater certainty and time to leverage the benefit.

Ireland also provides capital allowances of up to 80% on profits from patents, trademarks, and copyrights making it significantly more cost-effective to commercialise innovation.

Start-Up Company Relief (Section 486C)

New companies can benefit from full or partial relief on corporation tax for their first five years, based on their liability. From 2025, the relief will be linked to PRSI contributions, encouraging job creation and allowing eligible firms to claim up to €40,000 annually.

Employment Investment Incentive

The Employment Investment Incentive, or EII scheme, offers income tax relief to investors in Irish businesses. Investors can claim relief on up to €250,000 if they hold shares for four years, and up to €500,000 for a seven-year holding period, providing strong incentives for long-term capital support.

Grants and supports

In addition to tax incentives, a broad range of grants and business supports are available through IDA Ireland, Enterprise Ireland and Local Enterprise Offices ensuring businesses have the financial and strategic backing needed to succeed in Dublin.