UK Businesses Put in Danger by Taxes: Where to Escape
The UK economy is in decline, officially contracting, and stagnation has become evident. Currently, the average UK resident is nearly 40% poorer than the average person in other Western European countries. In response, the UK government is aggressively increasing taxation, mainly targeting successful individuals and businesses. The Labour Party’s newly introduced budget plans to raise taxes by £40bn – one of the largest ever tax raises outside of a recession. As a result, business owners are considering moving their companies to jurisdictions with more favourable tax conditions.
How to Relocate Business to Tax-Friendly Jurisdiction
There are approximately 15 suitable locations worldwide that offer significant tax advantages. The point is to choose a jurisdiction with a business-friendly taxation regime that does not hold the frankly questionable title of tax heaven. The recommended approach involves separating personal residency (the country you as an individual reside in) from corporate residency (the country your business is registered in). Many British business owners looking to relocate prefer Europe due to cultural familiarity and convenience
Why Ireland is the Best Country to Relocate UK Businesses
Ireland is the best destination due to its geographical proximity and English as an official language. Irish capital Dublin was and will remain the location of choice for firms leaving London post Brexit. While it is difficult to give an exact, definitive number of UK businesses that have relocated to Ireland post-Brexit, we can provide you with key factors that influence the decision.
One of the Lowest Corporation Tax Rates in the EU: Ireland offers an attractive corporate tax environment, with a standard corporate tax rate of 12.5% (15% in some cases), one of the lowest in Europe. The non-domiciled tax regime also allows individuals to be taxed only on income remitted to Ireland.
Common Travel Area (CTA): Under the CTA agreement, British and Irish citizens can move freely, reside in either jurisdiction and enjoy associated rights and privileges. This makes the UK business transition to Ireland a smooth and almost effortless movement.
English-Speaking Workforce: Ireland is the only English-speaking country in the EU. As a country with English as an official language and a skilled workforce, your UK business will operate without language barriers in Ireland.
Access to the EU Market: Relocating your UK business to Ireland will open access to UK businesses to sell their product in a market of over 450 million consumers The single market tackles many barriers that UK businesses could face while residing in their homeland, including tariffs and customs checks.
Discover more reasons to relocate your UK business to Ireland here.
How UK Businesses Can Relocate to Ireland in 3 Steps
The UK citizens looking to escape high taxation should move actively yet strategically.
Act Before Tax Laws Change: Moving before exit taxes or stricter regulations are implemented will save substantial amounts of money and resources
Separate Personal and Business Residency: You don’t need to change your residency to start a business in Ireland. Company formation in Ireland is available for non-residents.
Work with experts: Moving a business to Ireland is easy and smooth, provided you work with experienced company formation agents. At Chern & Co, we offer a full range of services to relocate UK business to Ireland. Contact our experts to learn more!
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Disclaimer: The content of this page is for acquainting purposes only and is subject to change. It does not constitute any professional advice. No liability is accepted by Chern & Co for any actions taken or not taken in reliance on the information set out in this article. Professional, legal or tax advice should be obtained before taking or refraining from any action
