Ireland raises its R&D tax credit to 35% to attract investment and tech talent

International Taxation

Ireland is strengthening its appeal as an innovation hub by raising the R&D tax credit to 35%. The measure, included in the Finance Bill 2025 and announced in the 2026 Budget, aims to improve the liquidity of companies in the early stages of development.


Irlanda It strengthens its appeal as an innovation hub by raising the R&D&I tax credit to 35%. The measure, included in the Finance Bill 2025 and announced in the Budgets of 2026It seeks to improve the liquidity of companies in early stages of development and consolidate the country as one of the world's leading jurisdictions for technology investment.

This strategic move positions Irlanda in a leading position in attracting high value-added projects. The increase in the tax credit is a clear signal to the international market about the country's commitment to fostering a business ecosystem focused on research and development.

A structural boost for corporate liquidity

The main advantage of this tax reform is the structural improvement in liquidity it offers, specifically designed for companies in their early stages of growth. By increasing the deduction rate, the Irish government makes it easier for both local and foreign companies to reinvest more capital in their operations, thereby accelerating their expansion and consolidation in the market.

The measure aligns with the policy of Irlanda to attract not only large multinationals, but also startups and SMEs with a high innovative component, strengthening the entire value chain of the country's technological and scientific sector.

Details of the new tax incentive for innovation in Ireland.
Concept Detail
New R&D&I Tax Credit 35 %
Applicable Regulations Finance Bill 2025 (announced in the Budgets) 2026)
Target audiences Companies in early stages of development and innovation projects

Frequently Asked Questions (FAQ)

What is the new type of R&D tax credit in Ireland?

The new tax rate for the tax credit for Research and Development (R&D) in Irlanda It has increased to 35%.

What regulations introduce this tax change?

The measure was announced in the Budget for 2026 and is implemented through legislation known as Finance Bill 2025.

What type of companies primarily benefit from this measure?

The reform is specifically designed to benefit companies in their early stages of development, as it provides them with a structural improvement in their liquidity to reinvest in growth.

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