Ireland vs Cyprus — EU Low-Tax Comparison

The comparison

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Ireland wins for:

US connection: Ireland is the EU HQ choice for Google, Meta, Microsoft, Apple. The US-Ireland DTAA is sophisticated. US companies expanding to EU commonly choose Ireland. If you have US investors or US-HQ operations, Ireland is the expected choice.

R&D credit (25%, refundable): Ireland's R&D incentive is among Europe's strongest. A loss-making startup can receive the 25% R&D credit as a cash refund over 3 years. Valuable for early-stage companies with high R&D spend.

Talent: Ireland's English-speaking, tech-educated workforce is deep. Dublin's tech ecosystem (EMEA HQs of all major US platforms) means talent is abundant.

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Cyprus wins for:

IP Box (2.5% vs 6.25%): Cyprus's effective IP Box rate is less than half of Ireland's. For a profitable IP licensing business, the difference is material.

Non-dom personal regime: A founder relocating to Cyprus (spending 60+ days/year there, no other residency) becomes Cyprus tax-resident under the 60-day rule. As a non-dom, dividends received from their Cyprus company are 0% at the personal level (no SDC). Combined effective rate: 12.5% CT only.

Lower compliance cost: Cyprus professional service costs are lower than Ireland's.

No EEA director requirement: Any nationality can be a Cyprus director. No bond required.

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Choose Ireland if: ✅ US connection, US investors, or expanding from the US ✅ High R&D spend (25% refundable credit is valuable) ✅ Building a team in an English-speaking EU country ✅ Connection to Dublin's tech ecosystem

Choose Cyprus if: ✅ IP-heavy business (2.5% vs 6.25% IP Box) ✅ You're relocating and want 0% personal tax on dividends (non-dom) ✅ Lower compliance cost matters ✅ Your team is remote (no need for Dublin office)

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