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Reasons To Start A Free Zone Company in Ireland: Brief Discussion

In this article, we will be going into the various reasons to start a free zone company in Ireland. Ireland is also the very first European nation to be granted a Free zone of its own.



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Ireland is one of the most attractive business regions in Europe because of various perks for regional and foreign businesses. Ireland is also the very first European nation to be granted a Free zone of its own.

As such, a majority of business owners think of

establishing a business in the free zone region in IrelandIn this article, we will be going into the various reasons to start a free zone company in Ireland. So, without any additional worry let’s dive into it.

Multiple Reasons to start a Free Zone Company in Ireland

One of the reasons to start a Free Zone Company in Ireland is that the free zone located in Ireland is among the top source of FDI (Foreign Direct Investment) and houses hundreds of businesses around the globe. Eventually, this Shannon Free Zone is managed and owned by Shannon Development. 

It authorizes business in several areas and currently employs around 8 000 people. This free zone is sought-after by the majority of businesses as they are exempt from VAT on imports including raw materials as long as 70% of the finished product is further exported.

Shannon Free Zone’s ability to provide investors with the chance to keep their stock and raw equipment at an incredibly lesser price has increased the free zone’s appeal around all continents. 

These reasons to start a free zone company in Ireland have made international firms swarm to the free zone of Ireland to establish their projects in this region of the European Continent.

Various Free Zones available in Ireland

After knowing the various reasons to start a free zone company in Ireland, foreign businessmen who are interested to start a free zone company in Ireland with a no-cost zone may select from the following options:

⮚ The Shannon Free Zone

⮚ The International Financial Centre

Shannon Free Zone provides an appealing marketplace for businesses that are registered here to have the ability to develop diverse options, including:

  • Repairing and maintaining aircraft components.
  • Business activities that to increase their value in the FREE zone (in the sense that the business has to be approved by the Ministry of Finance)
  • Trade activities that are related to the manufacture of goods.
  • Activities that are related to IP rights.

In Ireland, the registration process referring to the Irish zone of free access requires the issue of a license as required under the Customs Free Airport Act. It is expected that the Ministry of Finance issues the particular certificate which gives companies operating in free zones the opportunity to avail a variety of tax reliefs. 

Advantages of the Shannon Free Zone in Ireland

advantages of the shannon free zone in ireland

Down below we’ve listed some of the crucial benefits to start a free zone company in Ireland. 

Let’s see what they are:

  • Taxes on value-added products do not apply to imports of products.
  • Imported goods from non-EU nations to be utilized in the processing are tax-free
  • Exports of goods to nations outside the EU are also free from customs duties.
  • A tax price for companies that are as little as 12.5% for all earnings from trading
  • The motel is shut to Shannon airport, with everyday communions between the US and Asia
  • The Capital Assistance, Coaching, Research and Development authorize highly trained and well-experienced manpower.
  • A great transportation network that connects water, air, and the land.

Activities allowed in the Shannon Free Zone in Ireland

  • Renovate and care for the aircraft
  • The trading movements should be authorized before their implementation by the Minister of Finance.
  • IP rights-related actions.
  • Production of products associated with the industry

Tax Reductions available in the Irish Free Zone

The certificate, issued by local authorities will permit businesses in the free zone to benefit from a particular tax system. In general, the corporate tax rate that is applicable within Ireland is among the lowest rates available throughout Europe (it is charged with a standard tax rate, of 12.5%). 

Within Ireland’s Irish free zones, corporate tax will be imposed on businesses in the free zones at a rate of 10%.

Another significant tax advantage to companies that operate in free zones is that the companies are exempt from the Value Added Tax & the tax on customs. These are the tax benefits which you get when you plan to start a free zone company in Ireland.

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There are various reasons to start a free zone company in Ireland. It is always advisable to connect with professional experts to understand the legal structure of free zones, their tax compliance and various norms.

For more queries regarding the reasons to start a free zone company in Ireland, contact our experts at Odint Consultancy. Our team of specialists will provide you with detailed guidance.


Free zones serve as regional and national economic growth engines by encouraging foreign direct investments (FDI), particularly by reducing regulation and less government “red tape”.

Ireland’s tax-friendly environment makes Ireland one of the more appealing international investment destinations. The tax system is designed to compete and encourage innovation and enterprise

In a Free Trade Zone, merchandise can be displayed, assembled and cleaned up or manufactured, processed and repackaged, relabelled, repaired or salvaged or stored.

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