Economic Situation:

Despite rising labor costs, Ireland has managed to retain the majority of existing companies in the country and even attract new businesses. Thus, the focus is on innovative industries with high added value, such as sectors from bending technology. Furthermore, there is a high increase of companies in the service sector. Thus, e.g. various back-office matters of international companies are outsourced to Ireland. Call centers are also increasingly being set up by internationally active companies on the “Green Island”.

 

General Overview of Ireland’s Tax Structure:

In Ireland there is an income tax, a value added tax (VAT), and various other taxes. Employees pay pay-as-you-earn (PAYE) taxes based on their income, less certain allowances. The taxation of earnings is progressive, with little or no income tax paid by low earners and a high rate applied to middle to top earners, the top marginal rate of tax (including USC and PRSI) is 52%. However a large proportion of central government tax revenue is also derived from VAT, excise duties and other taxes on consumption. The standard rate of corporation tax is among the lowest in the world at 12.5%.

 

Double Taxation – Treaties and Agreements

Ireland is continuously expanding its tax treaty and agreement network so as to reduce barriers to cross-border trade and investment. Ireland has currently entered into double tax treaties with 72 countries. Irish Revenue Commissioner has concluded negotiations with Turkmenistan and a new agreement is expected to be signed shortly. Negotiations for new agreements with Azerbaijan, Jordan, Kazakhstan and Ghana are in progress and the Revenue Commissioner intends to initiate negotiations for new agreements with other countries during 2015. This will facilitate future expansion and modification of group structures.

 

Benefits of a Company Founded in Ireland

• - EU membership since 1973
• - Excellent infrastructure
• - Low start-up and administrative costs
• - Limitation of liability to subscribed equity
• - Banking secrecy for legal persons
• - Banking secrecy for legal director does not need to live in Ireland
• - Double tax treaties with many other countries
• - No mandatory minimum capital for incorporation of a Limited
• - Stable legal situation and strong economic growth
• - Tax-free income from patents and license income
• - Effective tax burden of 12.5% of the company with proper design
• - At the incorporation of the company a 3 years tax exemption, provided the profit in any of the 3 years does not exceed 40,000 euros

 

The biggest mistakes when starting a company abroad

Not all topics related to founding a company abroad are always free of prejudices and false information that have prevailed over the years. We give you an overview of the most important questions about founding a company abroad.

Founding a company abroad as a citizen of another country is legal?

Founding a company abroad as a citizen of another country is legal?

Yes, in most countries foreigners can be sole shareholder of a local entity.

Do you have to live in the country where you start a company?

Do you have to live in the country where you start a company?

No you can set up a company anywhere in the world, as long as the country in question allows you, as a foreigner, to acquire shares in local companies. If this is not the case, trustees can be used. Freedom of establishment applies within the European Union. However, it is important that the management takes place locally, in the country in which the company is registered. In addition, a permanent establishment must be set up. Without this, a German tax office will not recognize the company and, in the worst case, would demand back payment of corporate and trade taxes plus late payment penalties. We rent you a real office and set up a permanent establishment that meets all requirements without a doubt. In addition, we have real managing directors who run companies in the home country and are resident there.

Problematic law firms: closure is made more difficult

Problematic law firms: closure is made more difficult

Some law firms tie clients with gag contracts and apply pressure when the client wants to close their business. If you are a client of a law firm that has set up a legally unsound company for you, you make yourself vulnerable to blackmail. Because in the event of a tax problem, law firms without a license are not bound by a duty of confidentiality.

Changing offices is made more difficult

Changing offices is made more difficult

We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. Switching to us is then often made more difficult. So horrendous final bills are made, which have to be paid before a change is possible. Therefore we have developed a trust principle. If you are not satisfied with us and want to switch, you can do so at any time. You will receive the necessary documents (resignation letter) from us in a standardized form after the foundation. This protects you from unexpected costs and you are free to go to another law firm at any time. So far we have not lost a client to another law firm.

Privacy Policy/Office Location

Privacy Policy/Office Location

Your accounting documents are safe with us. In addition, all electronic data is only stored in encrypted form and apart from us, who are bound by professional secrecy, no one has access. All accounting documents are also only stored locally. Neither authorities nor hackers can access this data.

No taxes?

No taxes?

There are certainly locations in the world that do not charge any taxes to companies and private individuals or only charge a very low flat-rate tax. However, this can rarely be used without a corresponding change of residence. If you are resident in Germany, the relevant double taxation agreement is decisive. Providers who promise otherwise will tempt you into tax evasion, which is usually severely punished if discovered. We advise you not to set up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in Germany can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous account or company no longer exists.