EII Guide · 2026
EII Scheme Ireland 2026: Employment Investment Incentive Explained
The Employment Investment Incentive (EII) gives you up to 45% income tax relief on investments in qualifying Irish SMEs. Invest up to €500,000 per year and reduce your tax bill while supporting early-stage businesses. The scheme replaced the old Business Expansion Scheme (BES). Use our CAT Calculator alongside your EII planning.
EII Relief Rates 2026
The relief rate depends on the type of company and the investment. Here's how it breaks down:
| Investment Type | Relief Rate | Max Annual Investment | Max Tax Saved |
|---|---|---|---|
| Standard EII | 30% | €500,000 | €150,000 |
| Micro/Small Enterprise (extra relief) | 45% | €500,000 | €225,000 |
* The extra 15% (45% total) applies to investments in new micro or small enterprises that meet certain conditions.
Tax Saved by Investment Amount
Invest €10,000
Invest €25,000
Invest €50,000
Invest €100,000
What Companies Qualify for EII?
Not every company qualifies for EII investments. Here are the key criteria:
✅ Qualifying Criteria
- • Fewer than 250 employees
- • Turnover ≤ €50M or balance sheet ≤ €43M
- • Less than 7 years old (or 10 years for certain sectors)
- • Established in Ireland or EEA
- • Carries on a qualifying trade
- • Not in financial difficulty
❌ Excluded Trades
- • Property development
- • Financial services
- • Legal and accounting services
- • Farming (certain cases)
- • Dealing in goods (wholesale/retail)
- • Hotels, guesthouses, pubs
Key EII Rules
💰 Annual Limit: €500,000
You can invest up to €500,000 per tax year and claim relief on the full amount. There's no lifetime cap (though the company has a €15 million lifetime fundraising cap under EII and other State aid schemes). Married couples can each invest up to €500,000.
⏳ 4-Year Holding Period
You must hold the shares for at least 4 years from the date of issue. If you sell within 4 years, the relief is clawed back in full. After 4 years, you can sell without losing the relief — but any gain is subject to CGT at 33%.
🏢 Company Lifetime Cap: €15M
A company cannot raise more than €15 million in total under the EII scheme and other State aid schemes (including SURE, Seed Capital Scheme). This is a lifetime limit for the company, not per investor.
📋 Certification Required
The company must certify to Revenue that it meets all the qualifying conditions. You, as the investor, must receive a certificate from the company confirming the investment qualifies for EII relief. Keep this certificate — you'll need it to support your tax claim.
Real Example: €50,000 EII Investment
Aine invests €50,000 in a qualifying Irish tech start-up (a small enterprise). Because the company qualifies for the extra relief, she can claim the 45% rate.
| Item | Amount |
|---|---|
| Investment amount | €50,000 |
| EII relief @ 45% | €22,500 |
| Income tax reduced by | €22,500 |
| Effective cost of investment | €27,500 |
Result: Aine invests €50,000 but saves €22,500 in income tax — making her effective investment just €27,500. She keeps the shares and can sell them after 4 years (subject to CGT on any gain).