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Holding company in the Republic of Ireland vs holding company in Luxembourg: registration of a holding entity in a foreign country can deliver a range of commercial and tax benefits. Two of the most popular jurisdictions for British companies are the Republic of Ireland and Luxembourg, and they both offer some attractive benefits to investors.
Whether it's access to a lucrative foreign market or significant tax breaks, both countries have much to offer holding companies, and Coddan can help you to set yours up in the jurisdiction that best meets your needs.
The Republic of Ireland is regarded as one of the low-taxation economies in Europe when it comes to business. There is a standard 12.5 percent rate of tax on business profits, which is far lower than in most EU countries. The Irish government also offers tax exemptions for local profits and foreign dividends. There are attractive tax credits available for research and development programmes.
Ireland also offer exemptions from capital gains taxes, foreign investor tax credits and an absence of capital duty on equity investments. However, one of the biggest advantages that Ireland has over Luxembourg is the fact that it is an English-speaking nation.
Luxembourg - unlike the Republic of Ireland, Luxembourg has long been regarded as a safe haven for investments and assets, although their practices are now under increasing scrutiny by the EU. Nevertheless, the country still remains one of the most attractive holding company jurisdictions in the world.
Luxembourg has a wider reputation than the Republic of Ireland for introducing technical regulations that benefit international companies. There is a wider selection of unregulated investment vehicles available, including the very popular Societe de Participations Financieres (SOPARFI), as well as a vehicle intended solely for the holding of company assets - the Societe de Gestion de Patrimoine Familial.
Wherever you decide to register a holding company, you can rely on Coddan Formations Agency to ensure the holding company registration process runs smoothly. Both the Republic of Ireland and Luxembourg provide a hospitable framework of legislation for foreign holding companies, but there are still a great many rules and guidelines to follow. Our company start-up experts have extensive experience in registering holding companies in both of these jurisdictions, so you can enjoy the associated tax benefits without the worry that your new company isn't compliant with local laws.