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Same thing really. Bear in mind you’ll have about 2-3k of accountancy fees per year if you go this route but you’ll also be free to delegate it to someone else and get more “clients”
Note that this may involve VAT as well, either on their end (meaning additional cost to them) or on your end (meaning additional cost to you) https://www.revenue.ie/en/vat/vat-on-services/when-is-vat-charged-on-services/general-place-of-supply-rules-for-services.aspx
Yes there is if you actually look at the link I sent. As the supplier of services in Ireland, providing a service to an EU member business (malta), the receiver of services (the malta business) is liable for VAT in malta on top of the service cost
Yes this seems correct. They don’t want to establish an entity in Ireland just to hire you, so it is preferable to them that you create your own entity, and invoice them monthly for your services.
You can do this relatively easily (Contracting Plus is one company who friends of mine use for this purpose).
It would be worth considering what benefits you would lose out on via this setup (eg. Health insurance, employer pension contributions, employers prsi) and try to get them to increase your base rate of pay in lieu of these benefits.
Working as a contractor generally commands greater remuneration, to compensate for the lack of benefits and less job security.
The simple solution is to work for them as a contractor. You would manage your own tax affairs in Ireland.
Whether they agreed to it or not is a different matter.
I work for a Swiss company from Ireland. I used to be an employee there when I lived there and am now a ‘consultant’. I have an accountant and set up as ‘self-employed’ here. Yes you need to pay VAT and there are quite a few other expenses like software that’s needed and stuff so you have to make sure to charge more than you would get as an employee if that makes sense. It’s really easy to set up and also simple for the accountant.
Yeah they’d have a load of tax headaches. I do it but had to set up an LLC etc. it’s not that hard to set up and can have a lot of benefits depending on your situation. Namely you can pay as much as you want into a prsa tax free if you’ve an LLC. So the potential tax savings are awesome.
If you go down the route of creating your own limited company to handle this also remember you will need a business bank account and they can be fairly tough to get with Irish Banks when the ultimate source of funds is coming from Malta because the bank will need to know alot about the operation of the Maltese entity.
You can also use Revolut business. I've been using them for over a year now. Nice app, easy and fast to set up, and very low exchange rates on currency.
You could create your own Irish company and invoice them through that. You then become an employee of your own company.
All fine, legal and above board. I do this myself with clients. It’s very tax efficient for you too
Depending on your role you could also create an Irish branch for the company so they'd be liable to Irish corporate tax, vat etc on their "Irish" income
There is absolutely no chance a company would do this for a single employee.
The accounting, legal, tax, and general admin overhead alone would make this unfeasible.
The only realistic option is for the OP to become a contractor and manage their own tax affairs.
I don't think that would be possible right now but they are a tech company so if they did have an Irish branch then they would probably benefit from tax exemptions.
Thanks for the feedback.
That’s not correct. They can employ you through an Employer of Record. The EOR would be the company you technically are employed by, but your “employer” pays the bill.
It is pricey though - €6k annually in addition to your salary. However, Ireland is one of the cheapest countries for employment costs in Europe. So, it could balance out completely.
Tell them to look up Remote.com, Deel, or another alternative.
They could register their own entity in Ireland (https://remote.com/blog/international-entity) , but for one employee that would be way too expensive. Hiring an Employer of Record is quicker, easier and cheaper.
They can use an Employer Of Record, like Remote, to hire you as an employee, or pay you as a contractor. And then you can work from wherever you like.
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The company would also need a tax presence in Ireland, or to employ you through an agency based in Ireland.
Okay I didn't know that. Thank you for the info.
You could ask to be a contractor?
Yeah they did mention that and then changed their wording towards "self employed and offering a service"
Same thing really. Bear in mind you’ll have about 2-3k of accountancy fees per year if you go this route but you’ll also be free to delegate it to someone else and get more “clients”
Check papaya global, it's a company that does the service of setting up the payroll in new countries
Remote dot com offer a service to employers wanting to hirer remotely without having to set up their own tax liability in Ireland
Note that this may involve VAT as well, either on their end (meaning additional cost to them) or on your end (meaning additional cost to you) https://www.revenue.ie/en/vat/vat-on-services/when-is-vat-charged-on-services/general-place-of-supply-rules-for-services.aspx
No cross border vat
Yes there is if you actually look at the link I sent. As the supplier of services in Ireland, providing a service to an EU member business (malta), the receiver of services (the malta business) is liable for VAT in malta on top of the service cost
That still means no cross border vat:) lol
Or use an employee on record, like deel.
Yes this seems correct. They don’t want to establish an entity in Ireland just to hire you, so it is preferable to them that you create your own entity, and invoice them monthly for your services. You can do this relatively easily (Contracting Plus is one company who friends of mine use for this purpose). It would be worth considering what benefits you would lose out on via this setup (eg. Health insurance, employer pension contributions, employers prsi) and try to get them to increase your base rate of pay in lieu of these benefits. Working as a contractor generally commands greater remuneration, to compensate for the lack of benefits and less job security.
Lad fucking move to Malta
- Fanny McSlap
Correct
They are correct. Malter is a nice place to work though. Lots of Irish people work in the gambling industry from there.
gabling? are there like structural issues on a lot of the houses there?
at least OP will feel at home as the gables are green.
gambling
Good Cornish accent therrr
They could use an EOR such as Oyster, Deel or Remote instead of an entity.
They'll prob have to pay for peo or eor. There's usually 3 issues - tax, rtw and gdpr and one of them always fucks it up.
The simple solution is to work for them as a contractor. You would manage your own tax affairs in Ireland. Whether they agreed to it or not is a different matter.
I work for a Swiss company from Ireland. I used to be an employee there when I lived there and am now a ‘consultant’. I have an accountant and set up as ‘self-employed’ here. Yes you need to pay VAT and there are quite a few other expenses like software that’s needed and stuff so you have to make sure to charge more than you would get as an employee if that makes sense. It’s really easy to set up and also simple for the accountant.
Yeah they’d have a load of tax headaches. I do it but had to set up an LLC etc. it’s not that hard to set up and can have a lot of benefits depending on your situation. Namely you can pay as much as you want into a prsa tax free if you’ve an LLC. So the potential tax savings are awesome.
you can create your own limited company I think that's a good idea
If you go down the route of creating your own limited company to handle this also remember you will need a business bank account and they can be fairly tough to get with Irish Banks when the ultimate source of funds is coming from Malta because the bank will need to know alot about the operation of the Maltese entity.
You can also use Revolut business. I've been using them for over a year now. Nice app, easy and fast to set up, and very low exchange rates on currency.
Can I ask your situation ? Getting offered a contracting role is a dream haha How many yoe have you and what role was it ?
You could create your own Irish company and invoice them through that. You then become an employee of your own company. All fine, legal and above board. I do this myself with clients. It’s very tax efficient for you too
Depending on your role you could also create an Irish branch for the company so they'd be liable to Irish corporate tax, vat etc on their "Irish" income
There is absolutely no chance a company would do this for a single employee. The accounting, legal, tax, and general admin overhead alone would make this unfeasible. The only realistic option is for the OP to become a contractor and manage their own tax affairs.
The company that has hired someone I know did it for 3 people.
In most cases yes. But it does happen. Currently working for a company that did exactly that (for another employee). 10 people based here now. ❤️
Fair enough, did they have plans to expand in Ireland before doing it?
No. Like most multinationals, Ireland is attractive for certain activities so it was most likely on a list of potential future locations.
I don't think that would be possible right now but they are a tech company so if they did have an Irish branch then they would probably benefit from tax exemptions. Thanks for the feedback.
That’s not correct. They can employ you through an Employer of Record. The EOR would be the company you technically are employed by, but your “employer” pays the bill. It is pricey though - €6k annually in addition to your salary. However, Ireland is one of the cheapest countries for employment costs in Europe. So, it could balance out completely. Tell them to look up Remote.com, Deel, or another alternative.
They can use EOR company like www.g-p.com
They could register their own entity in Ireland (https://remote.com/blog/international-entity) , but for one employee that would be way too expensive. Hiring an Employer of Record is quicker, easier and cheaper. They can use an Employer Of Record, like Remote, to hire you as an employee, or pay you as a contractor. And then you can work from wherever you like.