The Bottom Line: lreland’s R&D tax credit now gives you 30% back on qualifying research and
development costs. That’s €30 for every €100 you spend on eligible innovation work, plus you can deduct
the full €100 as a business expense. Combined, you save 42.5% on your R&D investment.
If your Dublin business is developing new products, improving technology, or solving technical problems,
you could be entitled to significant cash refunds from the Irish government. Ireland’s Research and
Development tax credit is designed to reward companies that innovate, and recent changes have made it
even more valuable.
At Soltax Dublin, we help businesses claim what they’re entitled to. This guide explains everything you
need to know about Ireland’s R&D tax credit in plain English.
What Is Ireland’s R&D Tax Credit?
The R&D tax credit is the Irish government’s way of encouraging businesses to innovate. Instead of just
allowing you to deduct R&D costs as normal business expenses, the government gives you extra money
back through this special credit.
Here’s How It Works:
- Spend €100 on qualifying R&D work
- Claim €30 back through the R&D tax credit
- Also deduct the full €100 as a normal business expense
- Total tax saving: €42.50 for every €100 spent
Recent Improvements: In 2024, the government increased the credit from 25% to 30%, making it even
more attractive for businesses to invest in innovation.
Who Can Claim the R&D Tax Credit?
Any lrish company that meets these basic requirements:
- You’re a registered company (not a sole trader or partnership)
- You pay corporation tax in Ireland
- You carry out qualifying research and development work
- Your R&D activities take place in Ireland, the EU, or the UK
The size of your business doesn’t matter. Whether you’re a Dublin startup or a multinational corporation,
you can benefit from this credit.