1. Claim the Enhanced R&D Tax Credit Immediately
If your business is involved in innovation: whether that’s software development for an ecommerce platform or designing new hardware: the rewards just got bigger. The Research and Development (R&D) tax credit has officially increased from 30% to 35%.
More importantly for your immediate cash flow, the first-year payment threshold has been raised to €87,500. This is a significant jump from previous years.
Do this first:
- Review your 2025 and Q1 2026 R&D expenditure.
- Identify costs that qualify for the new 35% rate.
- Ensure your documentation is “audit-ready.”
By claiming this now, you improve your liquidity because more of your R&D costs are paid out in the first year rather than being spread over a three-year cycle. If you are unsure of your standing, checking an audit preparedness checklist can help you organize your records before filing.
2. Review Your Capital Gains Strategy
Are you planning to sell business assets or exit a company this year? The timing of your disposal is critical. As of January 1, 2026, the CGT Entrepreneur Relief cap has increased from €1 million to €1.5 million.
This relief allows for a reduced 10% rate of Capital Gains Tax on qualifying assets. With the cap increase, you could potentially save significantly more on your tax bill compared to last year.
Do this first:
- Consult with your accounting team to see if your assets qualify for Entrepreneur Relief.
- If you were planning a sale in late 2025 but haven’t executed it, the new €1.5m cap is now your reality.
- Update your financial projections to reflect the potential tax savings.
3. Adjust for the New SARP and Foreign Earnings Thresholds
Attracting and retaining talent in Ireland has become more expensive, but the tax reliefs have been adjusted to compensate. If you are relocating key staff to Ireland, the Special Assignee Relief Programme (SARP) has been extended to 2030. However, the minimum income threshold has increased to €125,000.
For businesses sending employees abroad, the Foreign Earnings Deduction (FED) has also been boosted. The maximum relief is now €50,000, and the list of qualifying countries now includes the Philippines and Türkiye.
Do this first:
- Audit your payroll to identify employees who meet the new €125k SARP threshold.
- Update your travel and international assignment policies to include the new FED countries.
- Ensure your internal record-keeping is robust to support these claims during year-end accounts.
4. Ecommerce & Cross-Border: Navigating EU VAT
For our ecommerce partners, VAT remains the most complex hurdle. The EU continues to tighten its grip on digital trade. While Ireland offers specific reliefs, such as the VAT reduction on completed apartment sales (now at 9%), the broader EU landscape requires a “data-first” approach.
As a Global Tax Compliance Suite, we emphasize that your role is to provide the data; our role is to complete the compliance.
Do this first:
- Monitor Thresholds: If you are selling into multiple EU member states, ensure you are utilizing the One-Stop Shop (OSS) correctly.
- Update Pricing: With various VAT rate changes across the EU (like Ireland’s flat-rate VAT compensation for farmers decreasing to 4.5%), ensure your storefront reflects the correct tax at checkout.
- Sync Your Data: Ensure your sales funnel metrics are correctly integrated with your accounting software to prevent discrepancies in VAT filings.
5. Prepare for Interest Deductibility Reforms
The Department of Finance has been busy. New interest deduction rules are anticipated in the Finance Bill 2026. This will affect how much interest expense you can write off against your profits, particularly for companies with significant financing structures or cross-border loans.
Do this first:
- Review your current debt-to-equity ratios.
- Assess how a limit on interest deductibility might impact your corporation tax liability.
- Prepare for a potential consultation on withholding taxes, which is expected to follow shortly.
Why Compliance Execution Beats Advisory
In the modern tax environment, knowing the rules is only 20% of the battle. The other 80% is execution. This is why Sterlinx Global Ltd doesn’t just “advise.” We operate a delivery model where we take your daily data and turn it into completed, filed, and compliant tax returns.
Whether you are a UK Limited Company expanding into Ireland or a US LLC looking for VAT registration in Germany or Spain, the requirement is the same: consistent, accurate filing.
The Sterlinx Service Matrix:
- Full Compliance Suite: Available in the UK, Ireland, USA, Canada, and Australia. This includes everything from bookkeeping to year-end accounts.
- Modular VAT Services: Focused on the EU (Germany, France, Italy, Spain, Netherlands). We handle your registrations and filings so you can focus on scaling your brand.
Frequently Asked Questions (FAQ)
What is the new R&D tax credit rate in Ireland for 2026?
The R&D tax credit has increased from 30% to 35% for 2026. Additionally, the first-year payment threshold has been raised to €87,500, which significantly benefits the cash flow of smaller companies and startups.
Has the CGT Entrepreneur Relief changed?
Yes. As of January 1, 2026, the lifetime limit for the 10% CGT Entrepreneur Relief has been increased from €1 million to €1.5 million. This allows business owners to keep more of their profits when selling qualifying business assets.
Who qualifies for the Special Assignee Relief Programme (SARP) in 2026?
To qualify for SARP in 2026, the employee must earn a minimum base salary of €125,000 (excluding benefits). The programme has been extended until 2030, but the administrative requirements remain strict, so prompt filing is essential.
How do the Irish VAT changes affect farmers?
The flat-rate VAT compensation for farmers who are not registered for VAT has decreased from 5.1% to 4.5% effective from January 1, 2026. Farmers should adjust their invoicing and financial planning accordingly.
Does Sterlinx Global provide full accounting in the EU?
Sterlinx Global offers a Full Compliance Suite (Bookkeeping, Tax, Filings) in the UK, Ireland, USA, Canada, and Australia. In the wider EU (like France and Germany), we specialize in VAT-only services, including registration and ongoing compliance.
