Designated Activity Company (DAC) in Ireland — Mobile App Developer Formation Guide
When choosing a jurisdiction, consider where Apple and Google will send your payouts. Ensure your chosen country has favorable double taxation treaties with the US to minimize the default 30% withholding tax on your US app sales.
Last verified: June 12, 2026
Corporate Tax
12.5%
State Tax
0.0%
Formation Cost
$54
Annual Fee
$22
Forming a Designated Activity Company (DAC) in Ireland as a Mobile App Developer means a total tax burden of 12.5% and an official formation cost of $54. There is no minimum capital requirement. Standard formation takes 5-10 business days, or 2-3 business days expedited. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $2,976
Ongoing (per year)
≈ $622
Why Designated Activity Company (DAC) for Mobile App Developer?
Independent developers or small studios creating and monetizing applications on platforms like the Apple App Store and Google Play. Revenue streams typically include paid downloads, in-app purchases (IAPs), subscriptions, and in-app advertising.
Ideal for
- Indie developers
- Small gaming studios
- SaaS mobile app creators
- Freelance developers transitioning to product owners
Challenges to watch
- High platform fees (15-30% from Apple/Google)
- US withholding tax on royalties if no tax treaty exists
- Managing global VAT/GST compliance for digital services
- Protecting intellectual property across borders
Key decision criteria
- Double taxation treaties with the US
- Corporate tax rates on digital income
- Ease of opening a business bank account compatible with App Store payouts
- IP protection laws in the jurisdiction
Designated Activity Company (DAC) formation requirements
Minimum capital
None
Standard timeline
5-10 business days
Expedited timeline
2-3 business days
Local director
Required
Registered office
Virtual office allowed
Notarization
Not required
If the company does not have at least one director resident in the European Economic Area (EEA), it must secure a Section 137 Non-Resident Director Bond (approx. €1,600 - €2,000 for two years) covering €25,000.
Estimated breakdown (based on avg. $85,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 23%. Registration threshold: 75,000 EUR. Non-resident providers of digital services to Irish consumers must register for VAT under the OSS scheme or locally, charging the standard 23% rate.
Banking & payments for Mobile App Developer
Opening a traditional bank account in Ireland can be challenging and time-consuming for non-resident directors due to strict Anti-Money Laundering (AML) regulations and the requirement for in-person branch meetings. However, digital alternatives like Revolut Business, Wise, and Fire offer fully remote onboarding and are highly recommended for non-resident founders.
Supported payment gateways
Remote-friendly accounts
Revolut Business
Highly popular digital bank in Ireland offering multi-currency accounts, virtual cards, and fully remote onboarding for DACs.
Wise Business
Excellent for international startups needing local EUR, GBP, and USD account details with low FX fees. Fully remote setup.
Fire
An Irish-based digital payment institution providing dual EUR and GBP accounts with real-time notifications and remote opening.
Ireland incentives & advantages
R&D Tax Credit
35% tax credit on qualifying R&D expenditure (increased from 30% in 2024). First-year payment threshold is €87,500.
Start-Up Corporation Tax Relief (Section 486C)
Full relief on corporation tax up to €40,000 per year, linked to employer's PRSI contributions. Marginal relief applies for liabilities between €40,000 and €60,000.
Designated Activity Company (DAC) formation steps
Choose a unique company name and verify its availability with the Companies Registration Office (CRO).
Draft the Company Constitution, specifically the Memorandum of Association detailing the exact objects (activities) of the DAC.
Appoint at least two directors and a company secretary (one of the directors can serve as the secretary).
Secure a Section 137 Non-Resident Director Bond if none of the appointed directors reside in the EEA.
Establish a registered physical office address in Ireland (virtual offices with physical mail forwarding are permitted).
Submit Form A1 and the Constitution to the CRO via the CORE portal and pay the €50 filing fee.
Register for Corporation Tax, and if applicable, VAT and PAYE with the Irish Revenue Commissioners.
Open a corporate bank account using a traditional Irish bank or a digital alternative like Revolut Business or Wise.
Mobile App Developer FAQ
Do I need a US company to publish on the App Store?
No, you can publish from almost any country. However, having a US LLC or a company in a country with a US tax treaty can significantly reduce the 30% withholding tax on US sales.
How does VAT work for app sales?
Apple and Google generally act as the 'Merchant of Record' and handle VAT/GST collection and remittance for consumers in most countries, simplifying your tax compliance.
Where is the best place to incorporate an app studio?
Popular choices include the US (Wyoming/Delaware LLCs for low maintenance), UK (favorable tax treaties and IP laws), and Estonia (0% tax on reinvested profits, great for growing studios).
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Related terms
Key concepts you'll encounter when forming a Mobile App Developer
Related guides
Complete Designated Activity Company (DAC) guide
Taxes, requirements, banking, compliance
Designated Activity Company (DAC) cost calculator
One-time and annual cost breakdown
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