Ireland Fact-File Part 4:
Individual Business Tax-Efficient Structures

4.2 Ireland Individual Business for Non-Residents

Business possibilities for non-residents

It is possible, but not necessarily easy, for an incorporated company to be non-resident in Ireland and conduct significant business there. Non-resident companies have traditionally been available in Ireland, but under the Finance Act, 1999, all Irish-incorporated companies became resident; however, there are a number of exceptions to the rule, some of them to accommodate the situation of multinational companies (many American) who have established themselves in Ireland. The most important exceptions are:

An Irish-incorporated company which is resident in a treaty country and which is not resident in Ireland will continue to be regarded as non-resident in Ireland;
An Irish-incorporated company which is under the ultimate control of a person or persons resident in an EU member state or in a country with which Ireland has a double tax agreement, or which is, or is related to, a company whose principal class of shares is substantially and regularly traded on a stock exchange in an EU country or a treaty country AND which carries on a trade in Ireland or is related to a company which carries on a trade in Ireland will continue to be able to be non-resident under the management and control test. ('Related to' means that either one of the two companies owns at least 50% of the other, or that both are owned at least 50% by a third company; 'Control' is interpreted within Irish rules that attribute the rights of shareholders to related parties and associates.)

Where a company is deemed to be non-resident, it will be liable to pay income tax on any income arising in Ireland that is not subject to corporation tax.

In terms of whether it is feasible for an unincorporated individual to be non-resident in Ireland and still conduct significant business there, the situation is (somewhat) simpler – as long as the appropriate taxes are registered for in Ireland with regard to the business: VAT, Corporate Income Tax, PAYE and PRSI (if employing people), and/or Relevant Contracts Tax (for contractors in the construction, forestry and meat-processing industries). Non-residence can be maintained fairly easily (although income tax must still be paid on Irish sourced income!)