The Employment Investment Incentive Scheme (EIIS) is a tax relief which aims to encourage individuals to provide equity-based finance to trading companies.
Where a EIIS investment is made by an individual in a qualifying company, significant income tax savings may be realised by the investor.
Depending on the nature of the underlying investment made, an investor may receive tax relief up to 125% of the amount invested.
For example, if an individual invested €50,000 in a qualifying company in 2025 and tax relief at the rate of 125% is applied, such an investment may reduce the tax liability by up to €25,000 (€50,000*125%*40%).
The tax relief will be claimed when the individual’s annual income tax return is filed.
The EIIS funds invested will be retained by the Company for a minimum period of 4 years.
In addition to receiving an income tax refund, a capital return may also be realised by the investor when the EIIS shares are eventually sold or redeemed after the 4-year holding period has lapsed.