Ireland or Estonia: where should you start a business?
Estonia ranks higher in the index, 13 against 17. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Trading income is taxed at 12.5% and non-trading income at 25%, according to PwC. VAT is 23%, and Budget 2027 left the 12.5% rate unchanged.
Retained profits are not taxed. Distributed profits bear 22%, calculated as 22/78 of the net amount, and VAT is charged at 24%.
Set-up
Online incorporation costs €50 and the annual return €20. No standard time applies, and on 8 October 2026 the queue ran about eight working days behind.
The state fee is €265, although a 2022 notice gives €200. Share capital starts at €0.01 per shareholder, and review usually takes a day.
On the ground
At least one director must be resident in the EEA unless the company lodges a €25,000 bond or certifies a real and continuous link.
Board members need not be resident but must be able to sign the application digitally. A company with a registered address abroad must name a contact person.
Ownership
Public access was suspended in November 2022, and access now depends on a legitimate interest or on being a designated person.
Beneficial owner data can be viewed by anyone on the e-Business Register portal. A restriction planned for 10 July 2026 was postponed.
Residence
The Start-up Entrepreneur Programme requires €50,000 in funding and a high-potential start-up. The Immigrant Investor Programme closed in February 2023.
A shareholder investing at least €65,000 in the company's Estonian activities qualifies for a business permit. e-Residency gives no right to live there.
Living and working
Currency
Euro.
Euro.
Time zone
UTC+0, and UTC+1 in summer.
UTC+2, and UTC+3 in summer.
Personal tax
Income above €44,000 is taxed at 40% for a single person in 2026, plus a charge of up to 8%; gains are taxed at 31%, gifts at 33%.
Income tax is a flat 22% in 2026, and gains on property transfers are taxed as income, with no separate capital gains tax.
Language
Irish is the national and first official language, and English is the second official language under Article 8 of the Constitution.
Documents submitted to a court must be in Estonian or translated into Estonian.
Ireland vs Estonia: common questions
Ireland: Trading income is taxed at 12.5% and non-trading income at 25%, according to PwC. VAT is 23%, and Budget 2027 left the 12.5% rate unchanged. Estonia: Retained profits are not taxed. Distributed profits bear 22%, calculated as 22/78 of the net amount, and VAT is charged at 24%.
Ireland: Online incorporation costs €50 and the annual return €20. No standard time applies, and on 8 October 2026 the queue ran about eight working days behind. Estonia: The state fee is €265, although a 2022 notice gives €200. Share capital starts at €0.01 per shareholder, and review usually takes a day.
Ireland: At least one director must be resident in the EEA unless the company lodges a €25,000 bond or certifies a real and continuous link. Estonia: Board members need not be resident but must be able to sign the application digitally. A company with a registered address abroad must name a contact person.
Ireland: Public access was suspended in November 2022, and access now depends on a legitimate interest or on being a designated person. Estonia: Beneficial owner data can be viewed by anyone on the e-Business Register portal. A restriction planned for 10 July 2026 was postponed.
Ireland: The Start-up Entrepreneur Programme requires €50,000 in funding and a high-potential start-up. The Immigrant Investor Programme closed in February 2023. Estonia: A shareholder investing at least €65,000 in the company's Estonian activities qualifies for a business permit. e-Residency gives no right to live there.
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