Office of the Revenue Commissioners
Employment Investment Incentive (EII)
The Employment Investment Incentive (EII) is a tax relief that encourages individuals to provide equity-based finance to trading companies, in return for shares that must be held for at least four years. The maximum annual investment eligible for relief is €500,000 where shares are held for at least seven years, or €250,000 where held for four years, for shares issued after 8 October 2019.
- Grant range
- Up to €500,000 tax relief
- Funding level
- 100%
- Support type
- Tax Relief
- Last checked
- 4 Sept 2026
About this scheme
The Employment Investment Incentive (EII) is a tax relief that encourages individuals to provide equity-based finance to trading companies. In return for the investment, the company issues shares which the investor must hold for at least four years, and the investor (or their family) must not already hold capital in the company. For shares issued up to and including 8 October 2019, relief was split into two tranches — 30/40 in the year of investment and 10/40 in the fourth year after — while for shares issued after that date, relief is given in full in the year of investment. The maximum annual investment eligible for relief depends on the holding period and issue date. To claim, investors need a 'Statement of qualification' from the company (for shares issued from 2019 onward) or an EII3/EII3A certificate (for earlier shares), and file the claim via their Income Tax Return (Form 11 or Form 12) or through MyEnquiries in myAccount.
Who can apply
- Available to qualifying individuals who provide equity-based finance to a qualifying trading company in return for shares
- The investor (together with their family) must not already own any capital in the company
- Shares issued must be held for at least four years
- For shares issued up to and including 8 October 2019, relief is split into two tranches: 30/40 in the year of investment and 10/40 in the fourth year after investment
- For shares issued after 8 October 2019, relief is available in full in the year of investment
- Maximum annual investment eligible for relief: €150,000 for years up to and including 2019; €500,000 for years after 2019 if the shares are held for at least seven years; or €250,000 for years after 2019 if the shares are held for at least four years only
How to apply
- Invest in a qualifying trading company and receive shares in return, committing to hold them for at least four years.
- For shares issued on or after 1 January 2019: wait for the company to issue a 'Statement of qualification' confirming it meets the company conditions, confirm you meet the investor conditions, then claim relief on your Income Tax Return (Form 11 or Form 12) or through MyEnquiries in myAccount.
- For shares issued on or before 31 December 2018: obtain an EII3 or EII3A certificate from the company and quote its certificate number on your Income Tax Return (Form 11 or Form 12) or through MyEnquiries in myAccount.