Running a business from home has become increasingly common across Ireland, offering flexibility, lower overheads, and a better work-life balance. Whether you’re managing an online shop, offering professional services, or running a digital agency in Dublin, home-based entrepreneurship is now a practical and popular way to start and grow a business.
However, while it’s perfectly legal to operate a business from your home, there are a few important considerations — including planning permission, insurance, tax implications, and compliance with local regulations. Understanding these from the outset will help you build a sustainable business while avoiding costly surprises later on.
Home-Based Businesses in Ireland
In Ireland, thousands of small businesses operate from home every year. They range from creative freelancers and accountants to e-commerce retailers and digital marketing consultants. Thanks to better broadband access, remote collaboration tools, and supportive government policies, working from home is no longer limited to a side project — it’s now a legitimate business model.
A home-based business typically involves using part of your home — such as a spare room, converted attic, or garden office — as a workspace. The key distinction is that your home remains primarily a residence, and business activity should not alter its main use or cause significant disruption to neighbours.
Do You Need Planning Permission to Work from Home?
In most cases, you do not need planning permission to operate a small business from your home, provided that:
- The residential character of your property remains unchanged.
- Business activities don’t cause excessive noise, traffic, or parking issues.
- There are no visible signs or external changes (e.g., shopfronts, signage, or customer footfall).
However, if your business generates significant deliveries, employs staff on-site, or regularly brings customers to your home, your local planning authority may require you to apply for change-of-use permission.
For example, a freelance web designer or copywriter working quietly from home would not need permission, but a home-based hairdresser or bakery welcoming clients daily likely would.
To confirm your situation, contact your local county or city council’s planning department, who can advise based on your specific business model.
Tax Considerations for Home Businesses
When running a business from home, you can usually claim a portion of household expenses as business costs. These may include:
- Heating and electricity
- Broadband and phone bills
- Rent or mortgage interest (on a pro-rata basis)
- Office equipment and supplies
Revenue allows you to apportion these expenses based on the percentage of your home used for business purposes. For example, if one room out of five is used as your office, you might claim 20% of relevant bills as a business expense.
If you’re self-employed, you must register as a sole trader with Revenue and submit annual tax returns through the ROS (Revenue Online Service). You’ll also need to keep detailed records of income and expenses, as these may be reviewed if you’re audited.
For limited companies, directors working from home can reimburse themselves for home-office expenses, provided these are reasonable and properly documented.
Insurance and Health & Safety
Even if your business is small, home insurance alone usually won’t cover business activities. You may need to update your policy or add business coverage to protect against liability, loss of equipment, or damage related to work operations.
Depending on your business type, you may require additional insurance such as:
- Public liability insurance (if clients visit your home)
- Professional indemnity insurance (for advice or consultancy work)
- Employers’ liability insurance (if you hire staff or freelancers)
You’re also responsible for ensuring your home workspace meets basic health and safety standards. This includes proper ventilation, ergonomic setups, safe electrical connections, and fire precautions — particularly if you use specialist equipment or handle materials.
Broadband, Utilities, and Business Setup
A reliable internet connection is crucial for most home-based businesses, especially those operating online. Upgrading to high-speed broadband or a business fibre package can improve efficiency and reliability, particularly if your work involves client meetings, video calls, or cloud-based systems.
If your business grows, you might consider setting up a separate phone line or dedicated work email to keep business communications professional. This also helps maintain a clear boundary between personal and professional life — something that can easily blur when working from home.
Registering and Structuring Your Business
If you’re working for yourself, you’ll typically register as a sole trader using your PPS number and business name through the Companies Registration Office (CRO). This process is straightforward and inexpensive.
If your business involves multiple partners, employees, or higher turnover, you might form a limited company, which provides limited liability protection and may offer tax advantages at higher income levels.
Regardless of structure, you’ll need to maintain proper financial records, register for VAT if your turnover exceeds the current threshold (€40,000 for services, €80,000 for goods), and ensure compliance with all Revenue reporting requirements.
Grants and Supports for Home-Based Businesses
Home-based businesses in Ireland can access a variety of supports through the Local Enterprise Office (LEO) network. LEOs offer mentoring, training, and financial assistance for eligible micro-enterprises, including grants such as the Priming Grant for start-ups and the Business Expansion Grant for growing businesses.
If your home-based business involves innovation, export potential, or digital development, Enterprise Ireland also provides funding programmes that encourage scaling and R&D investment.
Even if you’re just starting out, it’s worth booking a consultation with your local LEO to explore available grants, training, and marketing supports.
Advantages of Running a Business from Home
Operating a business from home offers many benefits:
- Lower costs: You save on rent, commuting, and overheads.
- Flexibility: You can design your schedule around clients or family life.
- Tax efficiency: Certain home expenses can be offset against business income.
- Scalability: Many successful Irish companies began as home-based ventures before expanding into commercial spaces.
From freelance designers and consultants to small online retailers and digital marketers, working from home gives entrepreneurs the freedom to grow at their own pace.
Running a business from home in Ireland is both legal and rewarding when managed correctly.
With clear planning, proper registration, and the right insurance, home-based businesses can thrive while maintaining flexibility and cost efficiency. Whether you’re starting an online store, offering consultancy services, or building a digital agency in Dublin, operating from home provides a smart and scalable foundation for long-term success.
