Quick answer — Irish Ltd at a glance. An Irish private company limited by shares (LTD) can be incorporated online with the Companies Registration Office, usually within one to two weeks, with nominal share capital. Profits from a trade carried on in Ireland are taxed at 12.5%; passive income and trading profits from a trade carried on abroad are taxed at 25%. At least one director must be resident in the European Economic Area unless the company posts a section 137 bond.
Ireland is the English-speaking common-law option in the EU, home to the European headquarters of many of the world's largest tech companies, with a 12.5% rate on trading income that every corporate client recognises. For a location-independent founder serving US, UK or EU clients, an Irish company carries real credibility.
The catch is in the detail of that 12.5%. It applies to profits of a trade carried on in Ireland. A company whose only activity is a founder working from a laptop in Portugal or Thailand may not be carrying on its trade in Ireland at all — in which case those profits fall into the 25% rate, and the founder's country may also claim them. Ireland works best when there is real activity in Ireland.
An Irish company with no people or activity in Ireland, run by a founder resident elsewhere, often gets neither the 12.5% rate nor a clean residence position. Consultants should also note the close company surcharge on undistributed professional-services income. It is not designed for local employees or settled expats.
Comparing EU options? See the best EU country to start a company.
If the substance needed in Ireland is too much for your setup, compare the Malta Ltd for non-resident founders. If you plan to relocate and want personal non-dom benefits, see the Cyprus common-law company.
An Irish-incorporated company is Irish tax resident under Irish law. If a tax treaty makes it resident in another country instead, for example because it is effectively managed there, Ireland treats it as non-resident. For a location-independent founder, three questions decide whether an Irish Ltd works.
The 12.5% rate requires a trade carried on in Ireland. Revenue looks at where the business is actually run: who makes decisions, where staff work, where contracts are negotiated and concluded. A founder working alone from abroad, with no Irish activity, risks the company's profits being treated as foreign trading income taxed at 25%.
Every LTD needs at least one director and a company secretary; a sole director cannot also be the secretary. At least one director must be resident in the European Economic Area, unless the company holds a €25,000 bond under section 137 of the Companies Act 2014, valid for two years, or obtains confirmation from Revenue that it has a real and continuous economic link with Ireland. Directors must also verify their identity when they are appointed.
If you live in another country and take the company's key decisions there, that country can claim the company is resident there under the tax treaty tie-breaker, or that it has a permanent establishment there. Board meetings in Ireland with an Irish-resident director who genuinely participates help keep management in Ireland.
Ireland treats you as resident if you spend 183 days there in a tax year, or 280 days over two consecutive years with at least 30 in each. If you move to Ireland, salary and dividends are taxed at Irish personal rates, which are high. If you live elsewhere, your country of residence taxes your dividends, and you may be able to claim an exemption from Irish dividend withholding tax.
An Irish LTD is cheap to register but costs more to run properly: typically €1,000–2,500 to set up and €2,000–6,000 a year, more if you need a nominee EEA director or a section 137 bond.
Amounts are indicative; confirm current fees with the Companies Registration Office.
On top of corporation tax, dividends to you are taxed in your country of residence, and Ireland may withhold 25% unless you qualify for an exemption. The difference between 12.5% and 25% is the reason to invest in real Irish substance before choosing Ireland.
Plan for one to two weeks to incorporate online once the directors' identities are verified, and several weeks for banking.
Irish high-street banks usually expect a clear Irish connection, such as Irish-resident directors, an Irish address and local activity, and may ask for in-person meetings. Many international founders start with an EU payment institution that provides Irish or other EU IBANs, then add a traditional bank once the business has a track record in Ireland.
The Ireland Business Bank Comparison Guide compares the main banks and payment institutions for LTDs owned by non-residents — get it when you start your Irish setup with Heavnn.
For trading profits from a trade carried on in Ireland, yes. Passive income and profits from a trade carried on wholly outside Ireland are taxed at 25%. Large groups with revenue of €750 million or more pay a minimum of 15% under Pillar Two.
Yes. Non-residents can own 100% of an Irish LTD. At least one director must be resident in the European Economic Area unless the company posts a €25,000 section 137 bond or obtains Revenue confirmation of a real economic link with Ireland.
It is an insurance bond of €25,000, valid for two years, that an Irish company can obtain instead of having an EEA-resident director. It covers certain fines and penalties the company might incur.
Online incorporation through the Companies Registration Office usually takes one to two weeks, once directors have completed identity verification and the documents are in order.
No, small companies can claim audit exemption if they meet the size conditions and file their annual returns on time. Late filing removes the exemption for two years.
Ireland's 12.5% depends on a real Irish trade. Heavnn checks whether your setup qualifies before you incorporate.
Start your Irish company with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
