EIIS Scheme Ireland: relief calculator
The Employment Investment Incentive Scheme gives Irish income tax relief of 20% to 50% on money you invest in new shares in a qualifying trading company. Enter the amount below, pick the type of risk finance, and the calculator shows the deduction from your income, the tax you save, the effective rate of relief, and what the investment actually costs you after relief.
The annual limit is €1,000,000 across all Part 16 reliefs.
The company tells you which category its round falls into. It determines the rate.
Relief is a deduction from income, so you need enough income taxed at your marginal rate to absorb it.
How this works: the relief is given as a deduction from your total income. The proportion you may deduct depends on the type of risk finance investment, and runs from 50% to 125% of the amount invested. Your saving is that deduction taxed at your marginal rate, capped at the maximum rate permitted for that investment type under State aid rules. An investor without enough income taxed at 40% receives less than the headline rate, which is why the marginal rate input changes the answer. Figures follow Revenue Tax and Duty Manual Part 16-00-04. This is a free estimate from Rentalize, not tax or investment advice, and Revenue is the authority on your own claim.
What is the EIIS scheme?
The Employment Investment Incentive Scheme, usually shortened to EIIS or EII, is an Irish income tax relief for people who invest cash in new shares in qualifying small and medium sized trading companies. You claim a deduction from your total income in the year the shares are issued, which produces an income tax saving worth between 20% and 50% of what you invested, depending on the type of round. The maximum you can claim relief on is €1,000,000 a year across all of the Part 16 reliefs. You must hold the shares for at least four years, and the company must send you a Statement of Qualification before you can claim. The relief is aimed at getting risk capital into Irish companies that would struggle to raise it otherwise, and it is one of the few remaining reliefs that reduces income tax at the higher rate.
EIIS relief rates in 2026
There is no single EIIS rate. The proportion of your investment that can be deducted from income depends on the type of risk finance the company is raising, which sets the maximum rate of relief permitted under State aid rules.
| Type of risk finance investment | Proportion deducted from income | Maximum rate of relief |
|---|---|---|
| Initial investment in a group that has not been operating in any market | 125% | 50% |
| Initial or follow-on investment in a group operating for less than 10 years, or less than 7 years since first commercial sale | 87.5% | 35% |
| Expansion investment in a group, to fund a new economic activity | 50% | 20% |
| Follow-on investment in a group operating for more than 10 years, and more than 7 years since first commercial sale | 50% | 20% |
| Any investment made through a Qualifying Investment Fund | 75% | 30% |
Source: Revenue Tax and Duty Manual Part 16-00-04, section 6.2. A company that is already selling cannot offer the 50% rate, because that band is for groups not yet operating in any market.
Limits, holding period and the Statement of Qualification
What you can invest
Up to €1,000,000 a year, combined across the Part 16 reliefs. The shares must be new, fully paid up, and subscribed for in cash. You cannot claim if you or your family already hold capital in the company, and the shares must be issued on or before 31 December 2026 under the current legislation.
How long you hold
Four years. If you dispose of the shares inside that compliance period, or the company breaches the conditions, the relief can be withdrawn and clawed back from you. EIIS is an illiquid, high risk investment in an unquoted company, and the capital is genuinely at risk.
How you claim
The scheme is self-assessed. The company must issue you a Statement of Qualification by 31 December of the year following the year the shares were issued. You then claim the deduction through your income tax return. Without the Statement of Qualification you cannot claim.
Which companies qualify for EIIS?
A qualifying company must be incorporated and tax resident in Ireland, another EEA state, or the UK, and must carry on relevant trading activities from a fixed place of business in the State. It must be unlisted, must hold a valid tax clearance certificate, must have a business plan for the money it is raising, and must be an SME, meaning fewer than 250 staff with turnover of €50 million or less and a balance sheet total of €43 million or less. It cannot be an undertaking in difficulty. Some trades are excluded, including dealing in land or in shares and securities, financing, and professional services such as legal and medical. Across its group a company can raise €5.5 million in any rolling twelve month period, up to a lifetime limit of €16.5 million.
EIIS funds in Ireland, or investing directly in a company?
There are two routes into EIIS. A Qualifying Investment Fund pools money from many investors and spreads it across a portfolio of companies chosen by the manager. Fund managers active in Ireland include BDO, Davy, Goodbody, BVP, Baker Tilly and Cantor Fitzgerald. The trade-off is that any investment made through a fund is capped at a 30% maximum rate of relief, where 75% of your subscription is deducted from income, and the manager charges fees on top. The second route is subscribing directly for new ordinary shares in a single qualifying company. You choose the company yourself and carry the concentration risk, but you get the rate that attaches to that company's round, which can be 35% or 50%, and there is no fund management fee between you and the shares.
Both routes need the same things to work: the shares must be new ordinary shares, you must hold them for four years, and the company must issue you a Statement of Qualification before you can claim. The calculator above lets you compare the two. Pick any investment made through a Qualifying Investment Fund to model the 30% fund band, then switch to the band for the company you are actually considering and compare the net cost.
Rentalize is an EIIS qualifying company
Rentalize Software Limited is an Irish property management software company, incorporated in Dublin and registered with the CRO under number 765596. Our EIIS eligibility has been confirmed by our tax adviser, and we are opening an EIIS eligible tranche of ordinary shares alongside our €2M seed round. Because Rentalize is already trading and generating revenue, an investment falls into the band for a group operating for less than 10 years and less than 7 years since first commercial sale, which carries a maximum rate of relief of 35%, not the 50% band that applies only to companies not yet selling in any market. You can model that in the calculator above. We issue a Statement of Qualification to every EIIS investor so the relief can be claimed.
Investors should take their own tax advice before subscribing. Relief depends on your personal circumstances, including whether you have enough income taxed at the higher rate to absorb the deduction, and it can be withdrawn if the conditions are not met.
EIIS FAQ
How much tax relief do you get on EIIS?
Between 20% and 50% of the amount you invest, depending on the type of risk finance the company is raising. The most common band for a trading company under ten years old is 35%, where you deduct 87.5% of your investment from your income. On a €50,000 investment at that band, a higher rate taxpayer saves €17,500 in income tax, so the net cost is €32,500.
What is the maximum EIIS investment per year?
€1,000,000 in a year of assessment, combined across all of the Part 16 reliefs. If you invest more than that in a year, relief is limited to the €1,000,000 ceiling.
How long do you have to hold EIIS shares?
Four years from the date the shares are issued. This is the compliance period. If you sell inside it, or the company stops meeting the conditions, the relief can be withdrawn and recovered from you.
Do you get 40% relief on EIIS?
Not as a rate of relief. The 40% figure is the higher rate of income tax, which is what the deduction is set against. The rate of relief on the investment itself is 20%, 30%, 35% or 50% depending on the type of round, and it is capped at that level even if the arithmetic would otherwise give you more.
What happens if I do not have enough income taxed at 40%?
You receive less relief. The deduction reduces your taxable income, so if part of it lands against income taxed at 20%, the saving on that part is 20%. The calculator above models this when you change the marginal rate, which is why the effective rate can come out below the headline band.
When does the EIIS scheme end?
Under the current legislation, shares must be issued on or before 31 December 2026 for relief to be available. Extensions have been legislated for in previous Finance Acts, so check the current position before planning around the date.
How does the EIIS scheme work?
You subscribe cash for new ordinary shares in a qualifying company. The company issues the shares, then issues you a Statement of Qualification confirming the investment qualifies and telling you the proportion you may deduct. You claim that deduction against your total income for the year the shares were issued, through your income tax return. The saving is the deduction multiplied by your marginal rate, capped at the maximum rate of relief for that type of round. You then hold the shares for four years. If you sell early, or the company breaches the conditions inside that period, Revenue can withdraw the relief and recover it from you.
What is a Statement of Qualification, and is EIIS self certified?
EIIS is self certified by the company, not pre approved by Revenue. The company assesses its own eligibility, and if it is satisfied it meets the conditions it issues each investor a Statement of Qualification, formerly the EII 1 and EII 3 forms. That statement is what you rely on to make the claim. Because there is no advance Revenue clearance, the risk of the company being wrong sits with the investor: if the conditions were never met, the relief is withdrawn. This is why the company's own tax advice matters, and why we have had ours confirmed.
Can I invest in EIIS through a fund instead?
Yes. A Qualifying Investment Fund spreads your money across several companies and the manager does the selection. The cost is a lower cap: any investment made through a fund is limited to a 30% maximum rate of relief, with 75% of your subscription deducted from income, and management fees apply. Investing directly in a single company carries concentration risk but gets the rate attaching to that company's round, which is 35% for a trading group under ten years old.
Is EIIS risky?
Yes. EIIS invests in unquoted small companies, the shares are illiquid, and you can lose the full amount. The tax relief reduces the cost of the investment, it does not protect the capital. It is not a substitute for taking your own financial and tax advice.
Is this calculator official?
No. It is a free estimate from Rentalize built from the rates and limits published in Revenue Tax and Duty Manual Part 16-00-04. Revenue is the authority on any claim, and your own accountant or tax adviser should confirm the position before you invest.
Investing in Rentalize under EIIS
We are raising a €2M seed round with an EIIS eligible tranche. Book a call to meet the founders and get the data room.
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