Why you should Consider an Irish Holding Company

Firstly, why you should consider an Irish Holding company is that Ireland is the EU’s prime location for setting up a holding company. Secondly, over the last few decades, many hugely successful companies such as Apple, Intel, Pfizer, Facebook and Google, to name but a few, have set up operations here.

The reasons for all these companies setting up operations here and enjoying successful trading here are clear to see. Ireland, as a long-standing member of the EU, has a robust trading link throughout Europe and the rest of the world. Our unique relationship with the United States has been the catalyst for significant foreign direct investment.

As I mentioned, so many companies have settled on our shores. So, of the top 20 global tech firms, 16 have their European headquarters in Ireland. Of the top 25 biotech and pharma companies, an astonishing 24 which chosen Ireland as the destination. On top of global industry giants setting up in Ireland, we have over 1200 multinationals taking advantage of the ease of access to EU markets that Ireland has and Ireland’s business culture.

So, with all this in mind. Here is why you should consider an Irish holding company.

Business Culture

Ireland is viewed the world over as a leading business environment. Our political stability and the elements that make up our regulatory regime are key to this. Also, if you’re not a fan of bureaucracy, Ireland is considered low in this regard. This is thanks to bodies like the IDA and Enterprise Ireland, which provide excellent support to entrepreneurs.

The plaudits for Ireland’s business culture keep on coming with the World Bank’s “Doing Business” report labelling Ireland as the easiest place to start a business in the EU. This report also mentions that in Europe or the Americas, our tax regime is the most business-friendly.

Ireland’s Corporate Tax Regime

So what’s the incentive to set up a business in Ireland? Our corporate tax regime is ours. Our corporate tax is 12.5% and when you couple that with our international double tax agreements. What is left is a fantastic fiscal platform for a holding company.

Ireland has double tax treaties with the likes of Australia, Canada, the US, and China, as well as the OECD countries and, of course, all EU member states. Under these agreements, direct taxes are covered, and Ireland’s case is:

• Universal Social Charge
• Income Tax
• Corporation Tax
• Capital Gains Tax.

A few other things you should know and why you should consider an Irish Holding company.

• There is a remittance taxation system in place for non-domiciled Irish resident individuals. This allows a tax incentive to locate in Ireland for foreign individuals.
• There are no controlled foreign corporation rules
• The transfer pricing legislation is limited
• And, there is no dividend withholding tax on payments made to individual shareholders that reside in either an EU or a double tax treaty country.

Develop your ideas securely

If your company is involved in Research and Development, your company can avail of a corporation tax rate of 6.25% under the Knowledge Development Box (KBD) scheme.

So what this means is that long-term certainty is provided to industries planning their research and development investments in Ireland. This scheme also lends itself to strengthening Ireland’s high standing as a country for the protection of Intellectual property.

This standing has led to Ireland being one of the biggest exporters of IP in the world. Holding companies involved in R&D activities in Ireland have benefited from a tax credit of 25% on expenditure.

Our reputation, as a common law jurisdiction, is a safe and stable place from a political point of view to hold IP rights. This is backed up by a robust court system that strongly protects the owner’s intellectual property rights. This also covers patents, trademarks, copyrights and designs.

Workforce

Another reason why you should consider an Irish Holding Company. Is the highly skilled and educated workforce at your disposal in Ireland. Approximately 52% of people between the ages of 25-34 have a 3rd-level qualification. To put that in perspective, an OECD average is 43%.

It’s our highly skilled workforce, along with other important factors, that are important for companies considering setting up in Ireland.

Brexit

So, it just seems to keep lingering, doesn’t it? As it edges ever closer, many UK companies are looking to protect their interests from Brexit.

Barclays has shifted ownership of its French, Spanish and German branches to its Irish entity. It looks like they will move all their EU-based entities to an Irish holding company. Other companies are at this moment looking to do the same, and this is a big endorsement for Ireland as a hub for doing business.

By setting up a holding company in Ireland before Brexit, it will allow them to adapt more seamlessly to any post-Brexit policies or regulation changes, but also open new opportunities.

And lest we forget

• Low capital startup costs
• EU Membership and proximity to those markets
• Growing Economy
• Supportive state agencies
• No ‘Thin Capitalisation rules’ or ‘Controlled Foreign Company’
• Being able to combine your trading activities with its holding company function.

It’s easy to see why Ireland is an attractive place to set up a business and to do business. That’s why you should Consider an Irish Holding Company. Finally, for more details, contact us today at enquiries@citytrust.ie or call 01-6753140