For anyone thinking of going freelance or launching their own small business, new research from Europe’s second-largest neobank, bunq, reveals that Ireland is one of the most affordable countries in Europe to get started.
Among the top 10 EU economies analyzed, Ireland stands out “as a highly attractive destination for entrepreneurs and digital nomads looking to kick off their next venture.”
Ireland saw a boost in entrepreneurship in 2024, with “23,384 new businesses starting up – a 5.5% jump from the year before.”
That includes everything from limited companies “to sole traders and partnerships.”
It was actually the second busiest year for “new business registrations in over a decade – only 2021, right after the pandemic, saw more.”
A key factor behind this growth is Ireland’s “low financial barriers that present a highly attractive environment for emerging business ventures.”
With a nominal fee of €50 charged by the Companies Registration Office (CRO) to register a business officially, “combined with a €1 minimum capital requirement and an average business bank account setup cost of €7.17, Ireland remains a popular destination for entrepreneurs compared to other European countries giving self-starters a true head start.”
Before professional advice and “excluding tax advisor fees, potential staffing costs, and other overheads these mandatory government and basic setup costs total just €58.17 – which makes it on the third place in the European comparison, right after Greece and Portugal.”
Even though not legally required for setting up a business, the costs of tax advice in Ireland are fairly low with an “average hourly rate of €50.”
By factoring in an average of “15 hours of tax support, the total projected costs for starting a business would increase to €808.17.”
While Greece (€287) and Portugal (€751) offer the “lowest startup costs, Ireland’s total of €808.17 is competitive.”
In stark contrast are countries like Germany (€26.266) and Italy (€13.512), where LLC’s face “significantly higher initial expenses, largely due to mandatory capital requirements.”
Notably, Ireland also compares favorably “on the cost of essential tax advice (€750 for 15 hours), sitting well below countries like France (€3.300) and Austria (€3.000).”
For comparison, the UK’s post-Brexit startup costs “are broadly similar, with a £50 registration fee and no minimum capital requirement, but business banking and tax advisory fees can run higher.”
With its low corporation tax rate of 12.5%, Ireland offers an advantage “for businesses aiming to set up within the EU.”
This rate is notably the lowest in the study and “compares very favorably to the UK’s tiered tax system, which varies from 19% to 25% based on profits.”
This factor, combined with the “low initial setup costs, positions Ireland as a hidden gem for startups and expanding companies.”
Bianca Zwart, Chief Strategy Officer at bunq, comments on the research:
“Starting something new takes courage, but where you start can make all the difference. Our research shows that in the right environment – like Ireland’s – ambition meets opportunity in a very real, tangible way.”
About the study
The ten countries with the “highest gross domestic product in the EU were considered for the study.”
Finland was excluded from the analysis “as there is no direct equivalent to the German GmbH.”
The required capital contributions, notary fees, costs for tax advice, costs for entry in “the commercial register, fees for business registration and for a bank account to set up a company (equivalent to a GmbH) were analysed.”
The costs for tax advice were calculated “on the basis of the minimum costs per hour and multiplied by 15 hours.”
General costs for tax advice “were taken into account.”
The minimum costs were used “for the ranking, except bank accounts, where the average offer from traditional banks was taken into account.”
The figures are indicative and may vary depending on “the company and the individual start-up case.”
The costs for the company seal in Ireland (75 euros) were “excluded from the ranking, as the company can also be established without it.”
A large number of external sources were used to “determine the values.”
Where available, official “government data and studies were used as sources.”