If you’re thinking about starting a business — or are already in the early stages — it’s important to plan how you’ll fund it. Starting a company can be expensive, but there are ways to reduce the financial pressure. By taking advantage of government tax reliefs and grants, you can access valuable support and keep more of your own money.
From funding for equipment and marketing to tax incentives for investors or founders, there is a range of options available.
What’s the Difference Between a Grant and Tax Relief?
Grants (Free money with a reason) are financial supports provided upfront to help cover specific business costs — such as market research, building a website, or hiring staff. While you don’t need to repay them, grants usually come with conditions. You’ll need to apply, meet certain criteria, and in many cases, contribute a portion of the project costs yourself.
Tax Reliefs (Tax back or tax savings), on the other hand, reduce the amount of tax your business owes. They don’t provide cash up front, but they can lower your tax bill either immediately or in future tax years. Tax reliefs are typically claimed when you file your tax return and can result in significant savings over time.
Here’s how to make the most of them, grouped by the source of support.
Revenue (Tax Reliefs)
These are reliefs handled by Revenue and claimed through your personal or company tax returns.
SURE (Start-Up Refunds for Entrepreneurs)
The Start-Up Relief for Entrepreneurs (SURE) is a government scheme that gives you an Income Tax refund if you invest in your own new company. It’s designed for people who are leaving PAYE employment or are recently unemployed and starting a business.
Who is it for?
You may qualify if:
- You’re leaving a PAYE job (or are recently unemployed).
- You’re starting a company and becoming a full-time director or employee.
- You had mainly PAYE income in the last four years.
- You haven’t had other earnings over €50,000 (or over your PAYE income, whichever is lower) in the previous three years before applying.
How Much Can You Claim?
You can claim a refund of Income Tax you’ve already paid for the year you invest in your company, plus up to six previous years.
- Minimum investment: €250
- Maximum investment: €140,000 per year.
- You can claim for up to seven years, meaning the total maximum eligible investment is €980,000.
- If you don’t use all your relief in one year, it can be carried forward.
Business Eligibility Criteria
- Your company must be a qualifying SME (small or medium-sized enterprise).
- It must be carrying out trading activities (not passive investments or professional services).
- If you haven’t started trading yet, the money can be used for research and development (R&D).
- Your business plan must show that your investment will help create or maintain jobs in the business.
- This scheme has strict conditions, so it’s important to read the full guidelines on the Revenue website.
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Start-Up Capital Incentive (SCI)
Similar to SURE but aimed at founders not from PAYE employment—e.g. unemployed or recent graduates.
Family members are often the first to believe in a new business, and now, they can also benefit from tax relief for backing one. The Start-Up Capital Incentive (SCI) is designed to encourage investment in early-stage micro-enterprises by offering Income Tax relief to family members who provide financial support.
Who Is It For?
The SCI is available to small companies with fewer than 10 employees that are starting a new, qualifying venture. The goal is to help these businesses raise capital from close family members, such as:
- A spouse or civil partner
- An ancestor or descendant (parent, grandparent, child, grandchild)
- A sibling
To qualify:
- Your business must be new and not already trading or preparing to trade for more than seven years before the share issue.
- The company must be independent, with no linked or partner enterprises.
- The business must carry out a qualifying trading activity as defined by Revenue.
Full eligibility criteria and terms are available on the Revenue website.
What Relief Is Available?
- Your company can raise up to €500,000 in its lifetime under the SCI — a benefit not available under the standard Employment Investment Incentive (EII).
- Family members who invest receive Income Tax relief on their investment, making it financially rewarding for them to support your venture.
What Can the Investment Be Used For?
The funds raised through SCI must be:
- Linked to a clear business plan, and
- Used to support either the creation or maintenance of jobs, or
- If the business hasn’t started trading yet, used for research and development activities.
Corporation Tax Relief for Startups
You may be entitled to a valuable tax break through Section 486C Corporation Tax relief, a support designed to ease the financial burden during your company’s early years.
Who Can Claim This Relief?
This relief is available to new trading companies that are within their first five years of trading. It’s designed to reduce your Corporation Tax (CT) bill — but only on profits and gains related to the new trade.
To qualify:
- Your total CT liability must be €40,000 or less in a given tax year to claim full relief.
- If your CT is between €40,000 and €60,000, you may still qualify for partial relief.
- Relief applies to all CT due, not just tax from trading profits.
What Is the Relief Applied To?
You can apply the relief to:
- Profits from your new trade, and
- Capital gains made from disposing of assets used in that trade.
You cannot use the relief for:
- Income or gains unrelated to the new trade (e.g., investment income or rental income).
PRSI Limits and Conditions
The amount of relief your company can claim is also linked to the employer’s PRSI (Pay Related Social Insurance) contributions made for staff and directors.
- Relief is capped at €5,000 employer’s PRSI per employee or director.
- There’s an overall annual limit of €40,000 in qualifying PRSI.
- If a company director pays PRSI under Class S, and therefore no employer’s PRSI applies, you cannot count that towards the relief.
- From 2025, you may include Class S PRSI remitted to Revenue — but this is limited to €1,000 per director.
Can the Relief Be Carried Forward?
Yes — unused relief may be carried forward under certain conditions:
- If your trade started on or after 1 January 2018, you can carry relief forward for five years.
- If your trade began before 1 January 2018, you can carry it forward for three years.
This relief can make a significant difference to your company’s cash flow in its early stages. For tailored advice, it’s best to speak with one of our financial advisors, and always check the latest guidance on the Revenue website.
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Employment Investment Incentive (EII)
The Employment Investment Incentive (EII) is a tax relief scheme designed to encourage individuals to invest in Irish trading companies. It works by offering Income Tax relief on your investment when specific conditions are met — making it an attractive option for those looking to support Irish enterprises while reducing their tax bill.
Who Can Apply?
EII is available to qualifying individuals who:
- Invest in eligible trading companies, and
- Do not own any capital in the company themselves or through family members.
How the Relief Works
When you invest in a company under the EII scheme, the business issues you new shares equal to the amount you’ve invested. You must hold these shares for a minimum of four years to retain the tax relief.
The structure of the relief depends on when the shares were issued:
For shares issued on or before 8 October 2019:
- 75% of the relief (30/40) is given in the year of investment
- The remaining 25% (10/40) is available in year four
For shares issued after 8 October 2019:
- 100% of the relief is given in the year of investment
Investment Limits
The maximum amount you can claim tax relief on each year depends on how long you hold the shares:
Investment Limits Based on Year and Holding Period:
- Up to and including 2019
Holding Period: 4 years
Maximum Relief: €150,000 - From 2020 onwards (7-year option)
Holding Period: 7 years
Maximum Relief: €500,000 - From 2020 onwards (4-year option)
Holding Period: 4 years
Maximum Relief: €250,000
Important Notes
- Relief applies to Income Tax only (not USC or PRSI)
- The investment must be in a qualifying trading company — this excludes companies in financial services, land development, and a few other sectors
- You must submit your application for relief through Revenue’s online system
For full details on the scheme, eligibility criteria, and how to apply, visit the official Revenue website.
Accelerated Capital Allowance (ACA)
If you’re a business owner, sole trader, or farmer looking to lower both your tax liability and your energy expenses, the Accelerated Capital Allowance (ACA) might be just the incentive you need. It’s a tax relief scheme designed to encourage investment in energy-efficient equipment, helping you save money while running a greener business.
What Is the ACA?
The ACA allows you to claim a 100% tax deduction on eligible energy-efficient equipment in the year it’s purchased, instead of spreading the relief over several years like standard capital allowances.
Does Your Equipment Qualify for ACA?
To qualify, the equipment you buy must be listed on the Triple E (Energy Efficient Equipment) Register, which is managed by the Sustainable Energy Authority of Ireland (SEAI). The register includes categories such as:
- Lighting and controls
- Heating and ventilation systems
- Electric vehicles and chargers
- Refrigeration units
- Motors and drives
For electric and alternative fuel vehicles, the allowance is based on the lower of the vehicle’s actual cost or €24,000.
Who Can Claim the ACA?
You may be eligible if you’re:
- A company, sole trader, or farmer
- Paying Corporation Tax or Income Tax on trading or professional income in Ireland
Visit SEAI’s website for complete guidance and eligibility criteria.
Pre-Trading Expenses
If you’re setting up a new business, you may incur costs before you officially begin trading. The good news is that certain pre-trading expenses — such as legal fees, accounting services, marketing research, and feasibility studies — may be tax-deductible.
These costs can be claimed when you file your first tax return, as long as they were incurred wholly and exclusively for the purpose of the business and within three years prior to the start of trading. This allows new businesses to recover some of their initial setup costs and reduce their taxable profits in the first year. For full details, visit Revenue’s website.
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Local Enterprise Office (LEO) Grants
Your Local Enterprise Office (LEO) is your go-to for grants and mentoring if you’re a small business (less than 10 employees).
Feasibility Study Grant
This grant supports entrepreneurs in researching and developing new business ideas, including market research and prototype development.
- Funding: Up to 50% of eligible costs, with a maximum of €15,000.
- More Information: Feasibility Grants – Local Enterprise Office – Dublin City
Priming Grant
Designed for startups within their first 18 months of operation, this grant can help cover various startup costs, including equipment, salaries, consultancy, and marketing.
- Funding: up to 50% of the investment cost, up to a maximum of €150,000 — whichever amount is lower.
- More Information: LEO Priming Grant
Business Expansion Grant
Aimed at businesses that are already trading and ready to grow, this grant supports expansion activities.
- Funding: up to 50% of the investment cost, up to a maximum of €150,000 — whichever amount is lower.
- More Information:Business Expansion Grants
Trading Online Voucher
This voucher helps small businesses develop or enhance their e-commerce capabilities.
- Funding: Up to €2,500, with the requirement that the business contributes 50% of the project cost.
- More Information:Trading Online Voucher Scheme Grant
Enterprise Ireland Funding and Grants
Enterprise Ireland supports startups with export potential and high-growth plans. Perfect if you’re thinking big.
New Frontiers Programme
Enterprise Ireland’s New Frontiers is a national entrepreneur development programme designed to support early-stage startups. It offers a structured 3-phase approach that includes:
- Up to €15,000 in funding
- Access to mentorship, workspace, and training
- More Information: New Frontiers
Pre-Seed Start Fund – Former Competitive Start Fund (CSF)
The Pre-Seed Start Fund offers up to €50,000 in equity funding for early-stage startups with strong global growth potential. This fund is designed to support the development and scaling of high-potential businesses, helping them progress toward securing further investment.
Companies that previously received support under the former Competitive Start Fund (CSF) may also be eligible to apply for an additional €50,000, provided they meet the suitability criteria.
- More Information: Pre-Seed Start Fund
High Potential Start-Up (HPSU)
The High Potential Start-Up (HPSU) programme is designed for innovative companies with the ambition and ability to scale internationally. It supports startups that are developing a new idea, product, or technology with strong commercial potential.
HPSUs are typically companies that plan to:
- Develop and commercialise a new product, idea, or technology
- Create 10 or more jobs and generate €1 million+ in sales within 3 years
- Grow and expand in overseas markets
Enterprise Ireland offers a range of supports through HPSU, including strategic guidance, mentoring, and co-funded investment of up to €1.2 million to help accelerate growth and international expansion.
More Information: High Potential Start-Up support
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Starting a business doesn’t have to mean using all your personal savings. With the right financial strategy—including available tax reliefs and government grants—you can set your business up for success while protecting your personal finances.
At True Wealth, we offer clear, practical financial solutions designed to help your company grow and succeed with confidence.
Our experienced financial advisors are here to help you and your business create a solid financial plan tailored to your goals. Whether it’s managing taxes, planning for retirement, or optimising your investments, we provide expert advice to guide you every step of the way. Secure your financial future with a personalised strategy designed for success.
We are experts in personal and business protection, savings and investments, pension tracing, personal financial planning, mortgages, and wealth management and extraction.
All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
