Tax system in Ireland
Ireland taxes residents on worldwide income and non-residents on Irish-source income. Personal tax is layered: income tax at 20% and 40%, Universal Social Charge (USC), and PRSI. The real take-home rate is therefore higher than the income-tax table alone suggests.
Companies generally pay 12.5% corporation tax on trading profits and 25% on most passive income. Large multinationals in scope of Pillar Two face a 15% minimum effective tax. Ireland also levies 23% VAT, 33% capital gains tax, 25% dividend withholding tax and Capital Acquisitions Tax on gifts and inheritances.
Ireland does not levy a general net wealth tax. Local property tax, stamp duties and CAT still matter for property owners and families.
Tax rates at a glance
- Income tax
- 20% / 40%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 33% CAT
- Capital gains tax
- 33%
- Corporate tax
- 12.5% / 25%
- Dividend tax
- 25% DWT + income tax
- VAT
- 23%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersMultinationalsExpatsEmployeesInvestors
Watch out for
- The 12.5% corporate rate is not a low personal-tax story. Income tax, USC and PRSI can push employee and founder take-home burdens much higher.
- Capital gains tax and CAT both sit at 33% in the common cases, so exit and succession planning matter even when corporation tax looks competitive.
- Dividend income is usually taxed as ordinary income after 25% DWT, not at a light flat investment rate.
- Pillar Two, transfer pricing and substance rules still apply to large groups using Ireland as a holding or IP location.
Frequently asked questions
Is Ireland a low-tax country?
For trading companies, the 12.5% corporation tax rate is still one of Europe’s most competitive. For individuals, Ireland is a mid-to-high tax system once USC and PRSI are included.
Does Ireland have a wealth tax?
No. Ireland does not levy a general annual net wealth tax, although local property tax, stamp duties and CAT still apply.
What should founders check first?
Check trading versus passive corporation-tax rates, payroll USC and PRSI, dividend extraction, 33% CGT and whether Pillar Two or substance rules apply to your group.