EIIS & Tax-Saving Schemes
Making the most of the Employment Investment Incentive Scheme and other Revenue-approved tax-saving reliefs.
EIIS and Revenue-approved tax reliefs
The Employment Investment Incentive Scheme, or EIIS, is one of the few remaining ways an Irish taxpayer can claim meaningful income tax relief by backing a growing business. We advise on both sides of the scheme: companies raising EIIS finance, and investors claiming the relief who need to understand what they are committing to. Used correctly, EIIS channels investment into Irish trading companies while giving the investor a genuine reduction in their income tax.
We work with companies and private investors across the Midlands, making sure the conditions are met from the start so the relief holds and Revenue’s requirements are satisfied.
How EIIS works
EIIS gives an individual investor income tax relief on the amount they invest in a qualifying Irish trading company, in return for taking on the risk of an equity investment in a smaller business. The company receives risk capital it can use to expand, employ people and grow; the investor receives relief against their income tax. The shares must be held for a minimum period, and the relief depends on the company continuing to meet the conditions throughout.
The rate of relief, the annual investment limits and the holding period are set in legislation and change over time, so we confirm the current rules with you before any investment is made and claim the relief properly on your Form 11 income tax return.
For companies raising finance
If you are considering EIIS to fund growth, the first question is whether your company and its intended use of the money qualify. We assess your eligibility against the qualifying-trade and qualifying-purpose tests, prepare the documentation Revenue requires, and make sure the share issue is structured so investors can rely on their relief. This work sits naturally alongside our business plans and finance applications and financial modelling and projections, which present your funding case in the strongest light.
For investors
For investors, EIIS can be an efficient part of a wider plan, but it is a real investment in a small company with genuine risk and limited liquidity. We help you understand the tax relief, the conditions that must hold during the holding period, and how the investment fits your overall position, particularly for high net worth individuals balancing several interests. We also make sure the relief is claimed correctly so it is not lost to a filing error.
Other tax-saving reliefs
EIIS is one of several Revenue-approved reliefs worth considering. Depending on your circumstances, pension contributions, retirement relief and other incentives may achieve more, which is why we look at EIIS as part of your broader tax planning rather than in isolation.
Make the most of the relief
Whether you are raising EIIS finance or considering an investment, getting the conditions right from the outset is what protects the relief. Talk to us before you commit. Get in touch to book a free consultation.
FAQs
Frequently asked questions
What is the Employment Investment Incentive Scheme (EIIS)?
EIIS is a Revenue-approved scheme that gives individual investors income tax relief when they invest in qualifying Irish trading companies. It is designed to help small and growing companies raise risk capital that would be hard to source from banks. The investor receives relief against their income tax, and the company gets equity funding to grow, employ people and expand.
How much income tax relief can an EIIS investor claim?
An individual who invests in a qualifying EIIS company can claim relief against their income tax on the amount invested, subject to annual investment limits and a minimum holding period. The exact rate of relief, the limits and the holding period are set in legislation and can change, so we confirm the current rules before you invest and make sure the relief is claimed correctly on your return.
Does my company qualify to raise EIIS funding?
To raise EIIS finance a company must be a qualifying small or medium trading company carrying on a qualifying trade, and the money raised must be used for a qualifying purpose such as expansion or job creation. The conditions are detailed and the company must meet them both when the shares are issued and afterwards. We assess whether your company qualifies and prepare the documentation Revenue requires.
What are the risks of investing under EIIS?
EIIS is an equity investment in a small company, so the capital is genuinely at risk and the shares cannot easily be sold. The tax relief reduces the effective cost but does not remove the commercial risk, and relief can be withdrawn if the conditions are not met during the holding period. We help investors understand both the tax and the conditions before committing, alongside their wider [tax planning](/services/tax-planning).
Get in touch
Let’s talk about your business
Book a free, no-obligation consultation with one of our chartered accountants. We listen first, then show you exactly how we can help.