Beginners Guide to EIIS Investments
EIIS stands for Employee and Investment Incentive Scheme. The funds raised through EIIS investments can be used for various purposes, including working capital, expansion, research and development, and employment creation. The scheme aims to support the growth of SMEs, stimulate job creation, and encourage investment in the Irish economy. At Green Crowd the companies we encourage investors to invest funds in are green investments in sectors such as renewables, green technology and manufacturing.
The way in which the EIIS incentivises Irish investors to invest in companies is by offering the investor a tax refund of 40% of the amount of their investment, on the basis that the investor leaves the investment in the company for a minimum of 4 years.
Therefore, if you, as an Investor, invest €10,000 in company ABC, you can reclaim €4,000 of this €10,000 from the Irish Revenue Commissioners when you make your tax returns for the year in which you make the investment.
The effect of this is that the most you can lose on this €10,000 investment is €6,000, and even if you receive a bonus payment on the repayment of your investment, you keep the €4,000 tax rebate. This makes a major difference to the risk-reward trade-off of the investment.
To be eligible for EIIS, the company must meet certain criteria. It must be an unquoted company (i.e., not listed on a stock exchange), have a permanent establishment in Ireland, have fewer than 250 full-time employees, and carry out a qualifying trade. Certain activities, such as dealing in land, financial services, and professional services, are excluded from the scheme.
It should be noted that the Irish Revenue Commissioners do not deem all companies eligible for EIIS status, so the tax rebate does not apply to companies in every sector. All companies presented by Green Crowd have been vetted accordingly and are not open with any other investment companies, Green Crowd is the sole raiser of funds for each company we offer for EIIS investments.