Ireland has become a hotspot for investors from around the world, and it’s easy to see why. As an EU member, investing in Ireland means easy access to global markets and a business-friendly tax system; it’s a great place to grow your wealth.
What’s even better is how diverse the economy is. From tech startups to established real estate markets, you’re sure to find opportunities that match your investment goals.
But to get the most out of your investments, understanding the Irish tax system is essential. The good news? It doesn’t have to be complicated. Whether you’re an expat or a foreign investor, this guide breaks down the tax rules you need to know.
The goal is simple: to help you keep more of your returns, stay on the right side of Irish tax law, and avoid any surprises down the line.
Tax Considerations for Expats and Foreign Investors in Ireland
Certain tax rules can have a big impact on your investment returns. Whether you’re an expat or a foreign investor, knowing the basics of Ireland’s tax system will help you invest with confidence and keep your money working for you. By staying informed, you can make smart financial decisions, take advantage of tax benefits, and avoid unexpected costs.
Income Tax
While Ireland is known for its business-friendly corporate tax environment, it’s also important for non-resident investors to understand the rules regarding income tax.
Broadly speaking, everyone earning income from Irish sources is subject to Irish income tax, regardless of residency status. This means that if you – as a non-resident investor – receive income generated within Ireland, you may have income tax obligations.
As of 2025, the standard income tax rates in Ireland are:
- 20% on income up to €44,000 (for single individuals)
- 40% on income above €44,000
Capital Gains Tax (CGT)
Along with income tax, you’ll also need to pay Capital Gains Tax (CGT) on any gains made from selling assets which derive value from Ireland (i.e. ‘specified assets’)
For example, if you buy an Irish property for €100,000 and later sell it for €150,000, your gain of €50,000 will be subject to CGT.
In Ireland, the standard CGT rate is currently 33% on the gains you make from the sale, and it usually applies to both residents and non-residents. So, if you’re selling Irish assets, make sure to account for CGT when calculating your returns.
Withholding Tax on Foreign Investments
If you’re earning income from your investments in Ireland, taxes may be withheld before you receive any payments. Why is this? Because it ensures that taxes are collected, even if you live outside of Ireland and don’t file a local tax return.
Here’s a quick rundown of how it works:
Dividends from Irish Companies
Ireland usually imposes a 25% Dividend Withholding Tax (DWT) on dividends paid by Irish companies to both residents and non-residents. This means that if you’re earning dividends from Irish stocks or companies, the tax will be deducted at the source.
If your country has a Double Taxation Treaty (DTT) with Ireland, you may qualify for a reduced tax rate or even an exemption (more on this shortly).
Rental Income from Irish Property
If you’re a foreign landlord in Ireland, you have various options for handling rental income taxes. For example, you can either use a collection agent to withhold 20% of the rent and submit it to the Revenue or have the tenant do it directly. Know your options and comply as required.
Interest Income
In Ireland, the standard withholding tax (WHT) on interest income is generally 20% for non-residents. However, this tax can be reduced or even eliminated under certain conditions specified in Double Taxation Treaties (DTTs).
Remember: For non-resident investors earning income from Ireland, withholding tax is a tax that gets deducted directly from your income before you receive it. You may claim the tax withheld as a credit against your Income Tax Return (Form 11) or Corporation Tax (CT) in that tax year.
But depending on the type of income you earn and whether there is a DTT between your country of residence and Ireland, the amount withheld may not always cover your full tax obligation.
It’s important to review the relevant treaty, seek professional tax advice, or talk to a financial advisor to fully understand the withholding tax implications.
How the Irish Tax System Benefits Foreign Investors
Ireland’s tax system offers several advantages for foreign investors. Here are a few you’ll want to know about before you invest.
Double Taxation Treaties (DTTs)
Ireland has DTTs with 70+ countries around the world that offer valuable tax benefits for foreign investors.
Preventing Double Taxation
Without a DTA, you could be taxed twice – once in Ireland and again in your home country. Ireland’s DTTs make sure that:
- You’re not taxed twice on the same income, dividends, or capital gains.
- You can offset Irish taxes against your tax liability in your home country (or vice versa)
Note: If Ireland doesn’t have a DTT with a specific country, or if a DTT doesn’t cover a certain tax, the Taxes Consolidation Act 1997 (TCA 1997) offers relief from double taxation on certain types of income and gains.
Tax-efficient Investment Vehicles
These structures, regulated by the Central Bank of Ireland, help investors minimise their tax liability while maximising returns. Ireland offers a range of these structures, making it a popular destination for foreign investors.
- Irish Real Estate Investment Trusts (REITs): REITs in Ireland do not pay corporation tax (CT) on the rental income or capital gains from property they own, making them an attractive investment. An Irish resident individual will suffer DWT on distributions. andnvestors may still be subject to capital gains tax (CGT) when selling their shares. Still, Ireland’s DTTs could reduce or remove CGT for non-residents.
- Irish Collective Asset-Management Vehicles (ICAVs): ICAVs are a tax-efficient investment fund structure that’s not subject to Irish tax on income or capital gains. It’s designed to be flexible and investor-friendly, making it a popular choice for international investors. Foreign investors are typically only taxed in their home country when they sell their investments, avoiding Irish taxes at the fund level. 41% exit tax on distributions to Irish investors but no usually Irish exit tax on distributions to non-Irish investors.
- Investment Limited Partnerships (ILPs): ILPs are commonly used for private equity, venture capital, and real estate investments. They’re tax-transparent, meaning the partnership itself doesn’t pay taxes. Instead, income is taxed at the individual investor level in their home country. This makes ILPs a great option for non-resident investors looking for tax-efficient structures.
Low Corporate Tax Rate (for Investment Structures)
Ireland’s 12.5% corporate tax rate is one of the lowest in Europe, making it an attractive location for investors.
- Holding companies: Many multinational businesses and private investors set up Irish holding companies to manage their international investments in a tax-efficient way.
Note: Not all types of income or trading activities qualify for the 12.5% rate. Some investment structures, like certain funds or passive income, may have different tax rates or exemptions.
It’s a good idea to consult with a tax professional to understand your specific situation and get advice on how to structure investments in Ireland efficiently.
Tax Reliefs and Exemptions
Ireland offers several tax incentives to help foreign investors at a corporate level reduce their tax burden:
- Section 110: This allows tax-efficient treatment of income from certain investments – like real estate – by letting investors deduct financing costs.
- R&D tax credit: Investors in research and development can claim a percentage of qualifying expenses, encouraging innovation.
- Intangible assets relief: The Knowledge Development Box may offer a reduced tax rate of 6.25% on profits from intellectual property like patents.
- Capital allowances: Investors in industrial buildings may be able to get tax relief on construction costs, making industrial real estate investments more attractive.
As always, get professional advice specific to the facts and circumstances applying to your situation.
Key Investment Opportunities in Ireland
Ireland offers several promising industries for those keen to invest money. Some of the most exciting investment opportunities in the country can be found in the following industries:
Real Estate
Ireland’s real estate market remains an attractive prospect for both local and foreign investors in 2025. Both the residential and commercial property markets have seen steady growth, and there has been a consistently strong demand for properties, particularly in urban centres like Dublin.
Dublin continues to be a key European hub for multinational companies, sustaining demand for high-quality office spaces and residential housing.
Remember: Foreign investors may benefit from favourable tax incentives like Real Estate Investment Trusts (REITs), which offer exemptions on certain taxes and make it easier to invest in Irish property without direct ownership.
Technology
Ireland is one of the leading tech hubs in Europe, and home to the headquarters of several multinational tech giants – including Google, Facebook, and Apple. With a highly-skilled English-speaking workforce, low corporate taxes, and supportive government policies that encourage innovation and investment, Ireland’s tech sector is growing fast.
- Software & SaaS: The Irish startup ecosystem offers great opportunities in Software as a Service (SaaS) and IT infrastructure, thanks to access to the EU market and supportive government programs.
- Fintech: With a strong regulatory framework and EU market access, Ireland’s global fintech companies are another great place to begin investing.
- Research and development: The Irish government’s incentives for R&D attract major tech firms looking to innovate and develop new products and technologies.
Pharmaceuticals
Fueled by a strong regulatory environment, access to EU markets, and a skilled labour force, Ireland’s pharmaceutical sector is one of the largest in Europe. The country is home to global pharmaceutical giants like Pfizer, Johnson & Johnson, and Eli Lilly.
The presence of major companies in Ireland creates strong opportunities in drug manufacturing, research, and biotechnology. And with a rising demand for biologics and generics products, Ireland is an exciting place to invest in these growing industries.
Talk to the Expat Taxes Team Today
Investing in Ireland is a great way to grow your wealth in a tax-friendly environment. But it’s important to keep in mind that there are some tax implications to manage, especially if you’re planning on investing regularly. Plus, there are always risks involved – like market ups and downs or changes in tax rules.
A tax specialist can help handle the tricky parts, like tax liabilities and navigating Ireland’s investment structures, so you can focus on the rewards.
Book a consultation with Expat Taxes today for personalised advice and expert guidance on your investment journey in Ireland. We specialise in helping individual investors navigate the nuances of investing in Ireland as non-residents or non-domiciled taxpayers.
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DISCLAIMER: The material in this article is for general information purposes only and does not constitute legal or taxation advice. Legal, financial, investment and taxation advice should be sought before acting or refraining from acting. All information and taxation rules are subject to change without notice. Expat Taxes Limited and RemitEase Limited (hereafter ‘the parties’) accept no liability for any action taken based on the information in this article or any of the articles in our blog series. The parties do not provide financial planning, investment, or mortgage advice; this article is provided only for general information. We are not authorised/licensed to provide financial advice, and this article should not be considered to constitute advice of this type in any respect.
