Foreign companies operating in Ireland are entitled to repatriate their profits obtained through commercial activities carried out in this country. As a member of the European Union (EU), Ireland applies the EU’s directives on the policies estalished for foreign direct investments (FDI). Investors interested in opening a company in Ireland should know that FDI represents a major component for the local economy. Foreign entities performing business activities in Ireland can receive in-depth assistance on the main procedures applicable to the repatriation of profits from our team of Irish lawyers.
Policies for the repatriation of profits
The Irish policies related to foreign direct investments are very attractive, foreign investors being able to receive a wide set of incentives for performing business operations and repatriating profits from this jurisdiction. The country’s representatives have negotiated various tax incentives with their top investors, which had a positive effect on the local economy. The top foreign investments in Ireland are performed by companies registered in the United Kingdom or the United States of America and our team of lawyers in Ireland can offer more details on the applicable regulations.
The following video offers a short presentation on the repatriation of profits from Ireland:
It is important to know that foreign companies in Ireland can benefit of almost no restrictions for the repatriation of profits.
Repatriation of dividends from Ireland
One of the most common legal manners through which a company may repatriate its local profits is through the payment of dividends.
As a general rule, the payment of dividends in Ireland is taxed at a rate of 20%. Companies can benefit from certain exemptions of the withholding tax on dividends in specific conditions.
For example, companies operating under the EU Parent- Subsidiary Directive can benefit from the tax exemption. At the same, natural persons can also benefit from the exemption, as long as they are tax residents in a country with which Ireland has signed a treaty for the avoidance of double taxation. Individuals can also benefit from this regulation if they are EU citizens.
It is important to know that the EU companies and legal entities which are tax residents of a double tax agreement country, which are not controlled by Irish residents, can also repatriate their profits under this rule.
Also, companies that operate in Ireland as a branch office of a foreign company will not be imposed with the withholding tax on profits.
Businessmen are invited to contact our law firm in Ireland for more details on other regulations referring to the repatriation of profits.