TL; DR: I am moving from an "auto-entrepreneur" situation in France to opening a business and I am looking for the best country between the UK and Ireland that could host my business in terms of taxations as well for residency. Are software development and consulting services tax-exempted for a newly registered company in Ireland?
Indeed, I propose software development and consulting services, in collaboration with two freelancers, and I expect a turnover of maximum 58 350€, and probably more than 37 350€, mainly with clients in France. My expenses (the price of my freelancers) will be 27 000 €. I would have a net profit of 38 350€ maximum. I have a "pre-settled" situation in the UK until 2025, which allows me to open a business here. I first thought of opening my business in the UK when I read this:
The corporate tax rate is much more advantageous in England than in France. It varies according to the amount of profits. It is 0% for profits below 15 583€, between 0 and 19% for profits between 15 584€ and 77 919€, between 19 and 30% for profits between 77 920€ and 233 754€ and 30% beyond. This rate is more interesting than the 33% rate in force in France. - bloginfluent.fr
So, economically, it makes sense since I would be taxed on my profits: (38 350-15534)*20% = 4563.2€.
And maybe it could have helped me extend my pre-settle status as I don't live most of the year in the UK. But I recently thought about Ireland, and I read that it is an even better situation:
The UK offers one of the lower rates of corporation tax in the EU, currently at 20%. Ireland however offers an even more competitive rate of 12.5% for trading income. This is substantially lower than most leading economies, including the UK, France, Germany, the USA and China. Both countries also boast double taxation treaties with most of the world’s leading economies.
International businesses looking to expand elsewhere in Europe can benefit hugely from a base or holding company in Ireland. As long as your company doesn’t make money from Irish customers, you should be eligible for a complete tax exemption on international income. A three year tax exemption is also available to certain businesses offering qualifying goods and services. - eurostartentreprise.com
So, if I don't qualify for the tax exemption on international income, the company will be taxed on the profits: 38350* 12,5% = 4793.75 €.
So I get these profits after paying the freelance bills and taxation.
So the difference will be between €130 and €3000. The latest is quite an amount of money but if it helps me to keep some residency status or get a Visa I would be okay with registering in the UK. However, if I can get some tax exemption in Ireland, I would definitely register my company there! So are software development and consulting services tax-exempted in Ireland?