EIIS

EIIS, SCI, and SURE in Ireland: The Complete Guide to Start-up Tax Reliefs

Starting or investing in a business in Ireland comes with a range of tax relief opportunities designed to encourage entrepreneurship and investment. Three of the main schemes are the Employment Investment Incentive Scheme (EIIS), the Start-up Capital Incentive (SCI), and the Start-Up Relief for Entrepreneurs (SURE).

These incentives are not only tax-efficient but also support start-ups in raising the capital they need to grow. In this guide, we’ll cover everything you need to know about eligibility, benefits, and claiming procedures, while giving practical examples to make it easy to understand.

1. Employment Investment Incentive Scheme (EIIS) Ireland

The EIIS is designed to encourage individuals to invest in start-ups and young businesses. Investors can benefit from significant tax reliefs, making it a highly attractive option for those looking to support Irish entrepreneurship.

1.1 What is EIIS?

EIIS allows investors to claim up to 50% tax relief on qualifying investments in certain small and medium-sized companies. Essentially, the government absorbs part of your investment cost through tax relief while you retain potential upside if the company succeeds.

Example:
If you invest €10,000 in an EIIS-eligible start-up, you can claim €5,000 tax relief, meaning your effective cost is €5,000.

1.2 Who Can Invest?

You can qualify for EIIS if you meet the following conditions:

• You are a qualifying individual in Ireland.
• Neither you nor your family owns capital in the company.
• The investment is in a qualifying company, usually a young SME with fewer than 250 employees.

Family members of existing shareholders cannot claim EIIS, to prevent abuse of the system.

1.3 Qualifying Companies

A company qualifies for EIIS if it:

• Is carrying out a qualifying trade (certain financial, legal, or property trades are excluded).
• Has a sound business plan.
• Is independent and unconnected to the investor.

The company must provide you with a Statement of Qualification, which confirms it meets all EIIS criteria. You cannot claim relief without this statement.

1.4 How EIIS Tax Relief Works

The rules differ slightly depending on when the shares are issued.

Shares issued up to 8 October 2019

• Relief is split into two tranches:
• 30/40 of relief in the year of investment
• 10/40 in the fourth year after investment
• 
  

Shares issued after 8 October 2019

• Full relief is available in the year of investment.

Investment Limits

Tip: Holding shares for a longer period allows a higher maximum investment.

1.5 How to Claim EIIS Relief

1. Ensure the company issues a Statement of Qualification.
2. Check that you meet all investor conditions.
3. Submit your claim through:
   • Income Tax Return Form 11 (self-assessed taxpayers)
   • Income Tax Return Form 12 (PAYE taxpayers)
   • Or via MyAccount → MyEnquiries

1.6 Advantages of EIIS

• Reduces investment risk by offsetting 50% of the cost against income tax.
• Encourages investment in early-stage Irish businesses.
• Flexible investment limits for different holding periods.

1.7 Practical Example

Jane invests €20,000 in an EIIS-eligible start-up in 2024 and holds the shares for 4 years. If the shares qualify for €250,000 limit relief:

• She can claim 50% tax relief in the same year → €10,000.
• Her effective investment cost is just €10,000.
• Any potential future growth of shares is fully retained by her.

2. Start-up Capital Incentive (SCI)

The SCI is a tax relief scheme for start-ups seeking equity investment from family members.

2.1 What is SCI?

SCI allows family members of existing shareholders to invest in a brand-new venture and receive tax relief on their investment. It is particularly useful for start-ups that cannot yet attract large external investors.

2.2 Key Conditions

To qualify for SCI:

• The company must be a brand-new venture.
• None of the shareholders may carry on a similar venture.
• Investments must be in new shares.

This ensures SCI relief is used to support truly new start-ups, rather than expansions of existing businesses.

2.3 Benefits of SCI

• Encourages family investment, which is often a first step for start-ups.
• Provides early-stage businesses with necessary capital.
• Works well in combination with EIIS for outside investors.

2.4 How to Claim SCI Relief

1. Ensure the company is qualifying and has new shares issued.
2. File your claim on Income Tax Return Form 11 or 12.
3. Keep the shares for the minimum holding period specified.

3. Start-Up Relief for Entrepreneurs (SURE)

SURE is designed for entrepreneurs starting a new business. Instead of reducing current tax, it provides a refund of Income Tax paid in previous years.

3.1 Who Qualifies for SURE?

You can claim SURE if you are:

• An employee starting your own business
• Recently unemployed
• Recently made redundant

Additionally, you must:

• Establish a new company carrying on a qualifying trade
• Have mainly PAYE income in the past four years
• Take up full-time employment in the company as a director or employee
• Invest cash in new shares in the company
• Hold shares for at least four years

Tip: Only individuals with sufficient Income Tax paid in previous years can claim a refund under SURE.

3.2 Benefits of SURE

• Provides a tax refund to reduce start-up costs.
• Encourages new business creation by reducing initial financial risk.
• Can be combined with EIIS or SCI if the company also raises equity externally.

3.3 How to Claim SURE Relief

1. Confirm that your business qualifies as a new company carrying on a qualifying trade.
2. Purchase new shares in the company.
3. Submit your claim with:
• Income Tax Return Form 11 or 12
• Ensure documentation includes proof of investment and employment.

4. Comparing EIIS, SCI, and SURE

Key Takeaway:

• EIIS = ideal for investors looking to support start-ups.
• SCI = ideal for families investing in new ventures.
• SURE = ideal for entrepreneurs seeking tax refunds to fund their own business.

5. Tips for Claiming Relief Successfully

1. Get the Statement of Qualification from the company before claiming EIIS or SCI.
2. Keep all documentation for at least 4 years.
3. Ensure shares are held for minimum periods (4–7 years depending on scheme).
4. Double-check eligibility: family members, previous involvement, and PAYE income requirements.
5. File on time via Form 11, Form 12, or MyAccount.

6. Common Questions About EIIS, SCI, and SURE

Q1: Can I combine EIIS and SURE for the same investment?
✅ Yes, if you meet the conditions for both schemes. SURE refunds prior tax, while EIIS gives tax relief in the current year.

Q2: What happens if I sell my shares before 4 years?
⚠ You may lose tax relief or have to repay it. Minimum holding periods are strictly enforced.

Q3: Are there limits to how much tax relief I can claim?
✅ Yes, see the EIIS investment limits table. SURE is limited to tax previously paid, while SCI varies per company.

Q4: Does Budget 2026 change EIIS rules?
❌ No, there were no changes to EIIS in Budget 2026.

7. Practical Example: Combining Schemes

Tom wants to start a tech company in Dublin:

• He invests €20,000 of his own cash → claims SURE tax refund for prior PAYE tax.
• His sister invests €15,000 → qualifies for SCI relief.
• An outside investor puts in €50,000 → claims EIIS relief.

Result: The company raises €85,000 while all investors benefit from significant tax incentives.

8. Why These Schemes Matter for Irish Start-Ups

• They reduce the financial risk of investing or starting a business.
• Encourage early-stage innovation in Ireland.
• Make Irish start-ups more attractive to private investors.
• Support family involvement, employee entrepreneurship, and venture growth.

Bottom Line: Using EIIS, SCI, and SURE strategically can make starting or investing in an Irish start-up much more financially viable.

9. How to Start Your EIIS, SCI, or SURE Journey

1. Assess your eligibility (investor vs entrepreneur).
2. Identify qualifying companies or start-ups.
3. Ensure documentation: Statement of Qualification, proof of PAYE, share certificates.
4. Submit your claim via Income Tax Return or MyAccount.
5. Hold shares for minimum periods to retain relief.

10. Conclusion

The Employment Investment Incentive (EIIS), Start-up Capital Incentive (SCI), and Start-Up Relief for Entrepreneurs (SURE) are cornerstone tax relief schemes for Irish start-ups and investors. They reduce risk, encourage investment, and make entrepreneurship more accessible.

By understanding the eligibility criteria, investment limits, and claiming process, individuals and families can maximize benefits while supporting Ireland’s growing start-up ecosystem.

Start planning your investment or start-up today, and take advantage of the tax-efficient pathways that Ireland provides for entrepreneurs and investors alike.

Disclaimer:

The information provided in this article is for general informational purposes only and does not constitute legal, financial, or tax advice. While we aim to ensure the accuracy of the content, tax laws and regulations may change, and individual circumstances vary.

Readers should consult a qualified tax advisor, accountant, or solicitor before making any investment, claiming tax relief, or starting a business. ST Tax accepts no responsibility for any loss, damage, or consequences arising from reliance on this information.