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IRELAND / UK : THE COMMON TRAVEL AREA OFFERS AN UNCOMMON ADVANTAGE

Post-Brexit, a month in. The world has not ended although life is dominated for the time being by the pandemic. Early challenges relating to perishable goods have arisen that must be addressed quickly but broadly speaking, cross border trading businesses will welcome the trade agreement even one signed at the last minute.

England & Wales has long been considered an ideal jurisdiction from which to run an international business. In the brave new world, establishment in an EU jurisdiction might also be considered, either as a subsidiary or as part of a full relocation.

Across the 27 EU member states, substance requirements are leading more often than not to the need for a company to consider physical presence. Thus alongside other concerns a particular location’s attractiveness – including for staff – should be considered from the outset.

For English speakers, Ireland remains an excellent option. In addition to the appealing corporate tax regime, other benefits include well developed infrastructure, convenient time zone, skilled workforce and an open, welcoming government particularly toward services and tech industries.

The Common Travel Area (“CTA”) is often overlooked but offers a distinct further advantage.

The CTA covers Ireland, the UK, the Channel Islands and the Isle of Man (residency restrictions apply in the islands). It pre-dates the EU by several decades and crucially it was recognised during EU-UK Brexit talks. The Withdrawal Agreement specifically allows Ireland and the UK to conclude separate arrangements and the CTA’s continuation was re-affirmed in a joint UK / Irish government statement in May 2019.

The agreement permits freedom of movement for Irish and British citizens between the countries whilst not applicable to foreign nationals. They can live, work (including on a self employed basis) or retire in either country. For Britons post-Brexit (and unlike other places such as Spain) there is no requirement to prove sufficient resources or pension rights.

Establishing companies in Ireland is straightforward and banking is not difficult. As always, local guidance including independent tax advice should be sought from the outset. Contact me for further information and relevant introductions if you or your clients are considering Ireland in your planning. we enter (UK) Week 5 – the number varies depending where you are in the world – I’d love to hear from

29 January 2021to see the cutest animal pictures (and please I’ve seen enough home cooking results too)

Contact ian@ianlebreton.com +44 (0) 7966 155584

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