10 May 2021 · Country Matchups · Global
The Battle for Founders’ Hearts (and Cap Tables)
Silicon Valley, move over. In 2024 two neighbours perched at Europe’s north-western fringe are courting international founders with English-language ecosystems, friendly time-zones for the U.S. market, and—crucially—clear residence routes tied to innovation.
As a relocation analyst who has helped more than 200 early-stage teams pick their launch pad, I’ve run the numbers on the United Kingdom’s Innovator Founder visa (the re-tooled successor to Innovator/Start-up) and Ireland’s Start-up Entrepreneur Programme (STEP).
Below, you’ll find:
- A line-item comparison of prerequisites, fees and timelines
- Effective corporate and personal tax burdens—including R&D incentives
- Real-world cost-of-living data for London vs. Dublin and regional alternatives
- Lifestyle, culture and “soft” factors you won’t see on government landing pages
- A decision matrix mapping common founder personas to the best fit
“Visas are the easy part,” an Estonian SaaS client told me recently.
“What kept me up at night was where my kids would go to school and how many months of runway the rent would burn.”
The following analysis tries to answer both halves of that equation.
1. Residency & Visa Pathways Compared
1.1 Snapshot Table
| Feature | UK Innovator Founder | Ireland STEP |
|---|---|---|
| Route launched | Apr 2023 (revamp) | 2012 (periodic tweaks) |
| Minimum funds to invest | None officially, but “sufficient” to execute business plan (practical floor: £50k) | €50,000 per founder (down from €75k) |
| Endorsement / Evaluation body | One of ±70 Home Office-approved endorsing bodies; must stay engaged | State-run Evaluation Committee under Dept. of Justice |
| Initial permission length | 3 years | 2 years |
| Fast-track to permanent residence | 3 years (if business meets scaling criteria) | 3 years (if business still viable) |
| Citizenship clock | 5 years residence (+1 for some) | 5 of last 9, incl. 1 continuous year before application |
| Family coverage | Spouse/partner & children <18 | Same |
| Application fee (main applicant) | £1,191 (outside UK) + £624/yr NHS surcharge | €350 processing fee |
| Approval rate (2023 releases) | 39% (Innovator Founder) | 89% (STEP) |
Source: UK Home Office, Irish Dept. of Justice, FOI requests, BorderPilot calculations.
1.2 Process Deep-Dive
United Kingdom
- Draft a business plan that hits the “innovative, viable, scalable” trifecta.
- Secure an endorsing body interview—expect to defend market size, IP edge and founder credentials.
- Receive an endorsement letter (valid 3 months).
- Submit visa application + biometrics. Decision in 3-8 weeks.
- After arrival, schedule a “contact point” meeting every 6-12 months; endorsement can be withdrawn if milestones miss.
Key nuance: unlike the old Innovator route, there is no explicit £50k investment threshold, but most endorsing bodies informally insist on it to prove commitment.
Ireland
- Complete an online expression of interest—think of it as a pitch deck on government PDF steroids.
- Deposit €50k into an Irish bank once conditional approval lands.
- Submit police clearance, medical insurance proof and pay the €350 fee.
- Collect a two-year Stamp 4 residence card upon arrival.
- At the 21-month mark, file a progress report to secure a three-year extension.
Ease factor: because evaluation is centralised, feedback tends to be consistent; you won’t spend weeks hunting for a sympathetic endorsing body.
1.3 Common Rejection Triggers
UK:
- Weak product validation (no user interviews, zero traction).
- “Consultancy in disguise”—service businesses seldom pass.
- Endorsing body conflict of interest (e.g., investor on its board).
Ireland:
- Personal funds cannot be traced back six months.
- Export potential under €1 million by year 3.
- Founders previously on short-stay visas violating over-stay rules.
2. Taxation & Cost-of-Living Analysis
2.1 Corporate Tax Environment
| Metric (2024) | UK | Ireland |
|---|---|---|
| Headline corporate tax | 25% (profits >£250k) / 19% small profits rate | 12.5% trading income; 15% for large MNCs post-OECD rules |
| R&D cash credit | Up to 20% SME, payable | 25% credit, payable |
| Patent/Knowledge box | 10% effective | 6.25% effective |
| Dividend withholding tax | 0% domestic, treaties vary | 20% (treaty reductions) |
On paper Ireland still wins with its famous 12.5 %, but remember most early-stage start-ups are in the red. Cash-back R&D credits matter more: the UK’s PAYE integration means you’ll see refunds within 4–6 weeks, whereas in Ireland you often wait a full fiscal year.
2.2 Personal Tax & Social Charges
Effective tax on a founder paying herself £70k/€80k salary:
| Country | Income Tax | Social Security | Net Take-Home |
|---|---|---|---|
| UK (London) | 20–40% marginal; ~£16k tax | £5.2k NI | £48.8k |
| Ireland (Dublin) | 20–40% marginal; ~€20.3k tax | €6.0k USC/PRSI | €53.7k |
(Sterling converted at 1 GBP = 1.15 EUR.)
Observation: Ireland’s tax-free credits offset USC, tipping take-home slightly in Dublin’s favour—until London’s £30k tax-free Seed Enterprise Investment Scheme (SEIS) relief kicks in for UK resident shareholder-directors.
2.3 Living Costs: London vs. Dublin vs. Regional Hubs
| Expense (monthly, April 2024) | London (Zone 2) | Dublin (D8) | Manchester | Galway |
|---|---|---|---|---|
| 2-bed apartment rent | £2,850 | €2,650 | £1,450 | €1,600 |
| Co-working desk | £350 | €300 | £180 | €200 |
| Flat white (it matters) | £3.80 | €3.60 | £3.20 | €3.50 |
| Childcare (full-time) | £1,700 | €1,350 | £1,000 | €950 |
Takeaway: Dublin is expensive but still 8-15 % cheaper than inner London across core line items. However, once you compare second-tier cities, the UK unlocks real bargains. Manchester’s rents are 49 % below London and the Innovator Founder visa places no geographic restrictions.
3. Lifestyle & Culture Factors
3.1 Talent Pool & Ecosystem
United Kingdom:
- 3 of Europe’s top 10 universities within 50 km of London.
- 20+ unicorns founded by non-British nationals.
- Graduate route visa allows you to hire your foreign MSc intern for two extra years, no sponsorship.
Ireland:
- EMEA HQ cluster: Google, Meta, Stripe’s engineering hub—all within a bicycle commute from Trinity College.
- Demographic dividend: 33 % of Dublin residents are foreign-born.
- High developer salary (€75k median) but limited senior product talent outside the capital.
3.2 Lifestyle Perks & Snags
UK Pros:
- Rail link to continental Europe: be in Paris before your second coffee.
- Diverse city menu—Birmingham’s Balti district, Bristol’s climate-tech scene.
- NHS free at point of service (after surcharge).
UK Cons:
- Post-Brexit visa uncertainty perception can spook U.S. investors.
- Property buying still subject to hefty stamp duty for foreign nationals.
Ireland Pros:
- Native English-speaking Eurozone jurisdiction—handy for EU grants.
- Small-country responsiveness: a fintech founder I coached had a regulatory sandbox meeting set up within ten days.
- c. €1,000 per parent tax credit for childcare from 2025.
Ireland Cons:
- Housing shortage more acute; you’ll fight VPs from Google for the same duplex.
- Public transport coverage drops sharply outside Dublin.
- Private health insurance almost mandatory for swift specialist care.
3.3 Cultural Fit
Anecdotally, founders who thrive in hyper-networked ecosystems gravitate to London: endless meet-ups, sector-specific “pitch nights”, and VCs willing to do coffee at 07:30.
If you prefer a smaller pond where people remember your name after one demo, Dublin’s tight-knit scene may feel warmer—and introvert-friendly.
4. The Best Option by Expat Profile
Below is my decision matrix built from real BorderPilot client cases.
| Founder Persona | Winning Route | Why |
|---|---|---|
| Solo technical founder bootstrapping on savings | UK Innovator Founder | Zero mandated €50k outlay; ability to settle in cheaper northern cities keeps burn low. |
| VC-backed team of 3 with U.S. customers | Ireland STEP | Eurozone + English + 12.5 % corporation tax + quick U.S. East Coast flight times. |
| Hardware start-up needing R&D labs | UK Innovator Founder | Access to Catapult centres, Innovate UK grants, and patent box synergy. |
| SaaS platform planning swift EU passport | Tie | Both offer 5-year naturalisation; Ireland edges ahead if you fear post-Brexit mobility limits. |
| Founder with school-age kids & spouse seeking work rights | Both good | Dependants can work full-time; compare schooling costs: UK state schools free, Ireland often uses fee-charging “national” schools. |
Quick note: If you’re still mulling Central America instead of rain-kissed isles, our recent Panama vs Costa Rica retiree residency compared face-off breaks down a very different set of variables—but the analytical framework is identical.
5. Practical Tips from the Field
- Secure housing early: Dublin landlords frequently demand 6–12 months’ rent upfront from visa holders without Irish credit history. Borrow tricks from our guide on finding long-term accommodation in Chiang Mai—from pre-viewing via video to leveraging local Facebook groups.
- Layer visas strategically: Many founders start on the UK Graduate visa, validate product-market-fit, then switch into Innovator Founder to reset the ILR (settlement) clock.
- Budget for professional fees: £3–5k for a UK endorsement consultant; €4–6k for Irish legal prep.
- Mind the spouse’s career: Ireland’s Stamp 4 gives full labour market access from day one, whereas UK dependant partners also work freely—yet their CV may require “Right to Work” HR clarification.
6. Conclusion: Two Strong Contenders, One Personal Choice
Both the UK and Ireland have modernised their founder visas, slashing red tape compared to legacy entrepreneur routes. Deciding factors tend to be practical (housing, school, cost) rather than the headline 12.5 % vs 25 % tax debate. London offers depth and flexibility; Dublin serves as a Eurozone launchpad with generous FDI incentives.
If you’re still on the fence, run your variables—runway, team size, funding stage—through BorderPilot’s algorithm. In under five minutes you’ll see a custom relocation pathway, plus budget forecasts that make CFOs smile.
Ready to see which island puts the wind behind your start-up’s sails?
Create your free relocation plan and let the data choose for you.