Is EIIS Investment a Good Tax Relief Investment?

Last Updated on 18/03/2025 by admin

Is EIIS Investment a Good Tax Relief Investment

The Employment and Investment Incentive Scheme (EIIS) stands out as one of the most attractive tax relief investment opportunities available to individual investors in Ireland. This initiative, which replaced the former Business Expansion Scheme (BES), aims to stimulate investment and employment in small and medium-sized enterprises (SMEs) by offering significant income tax relief.

For Irish SMEs, EIIS can play a key role in providing early-stage funding, or to help them expand into new markets. By facilitating access to capital, the scheme supports business growth, innovation, and job creation, which are vital for the Irish economy.

For investors, the scheme can offer up to 50% tax relief on investments of up to €1,000,000 per year in qualifying companies for a minimum four-year holding period. What further enhances its appeal to investors is that it is one of the few sources of total income tax relief (which includes, for example, rental income and ARF distribution income) still available to Irish taxpayers. As of 1 January 2024, there are now three tiers of tax relief available to investors:

• 50% for investments in businesses that have “not operated in any market.”
• 35% for investments in businesses that are within 7 years of its first commercial sale or 10 years of incorporation. .
• 20% for investments in businesses that are moving into a new economic activity

While capital placed in the EIIS is subject to investment risk, there is also the potential for additional capital return on exit, subject to the investment agreement. Investing through EIIS supports indigenous Irish companies, contributing to their growth and success.

You should always seek independent financial advice prior to investing in any crowdfunding projects.

To find out more about the investment opportunities available from Green Crowd, register at www.greencrowd.ie to be kept up to date with the opportunities as they become available.