App Developer

Tax tips for indie app developers and mobile software contractors in Ireland.

Allowable Expenses

• Developer Accounts & App Stores — Apple Developer Program fees, Google Play Console, and other distribution platform costs.
• Cloud Services & APIs — AWS, Google Cloud, Firebase, and API services used to build or run your apps.
• Test Devices — iPhones, Android phones, and tablets used to test applications — claim the business proportion.
• Software Tools — Development IDEs, plugins, and profiling software.
• Advertising & User Acquisition — App Store ads, Google UAC campaigns, and other paid marketing to drive downloads.
• Legal & IP Costs — Patent applications, trademark registrations, and IP protection legal advice.

Tax Tips

• Revenue from Irish app stores and international app sales is all taxable in Ireland if you are Irish tax resident.
• Ireland's R&D tax credit (25%) applies to qualifying research and development activities — significant if your app involves genuine technical innovation.
• App store fees (typically 15-30%) deducted by Apple or Google are allowable as a cost of sale against your app revenue.
• If contracting for a single client for an extended period, Revenue may challenge your self-employed status — ensure you have multiple clients or clear independence.

Frequently Asked Questions

Is app store revenue taxable in Ireland?

Yes. All income from Apple App Store, Google Play, or any other platform is taxable in Ireland if you are Irish tax resident, regardless of where the platform is based. Convert overseas income to euros at the ECB rate on the date received.

Are there Irish-specific tax reliefs for app developers?

Ireland's R&D Tax Credit (25% for companies; sole traders cannot claim it directly) incentivises qualifying R&D activities. However, as a sole trader, you are not eligible for the R&D credit — consider whether incorporation might be beneficial if you incur substantial R&D costs.

What PRSI class applies to self-employed app developers?

Self-employed individuals pay PRSI at Class S — 4% on all self-employment income above €5,000. This provides limited social insurance entitlements, including access to certain illness benefits.

Can I offset app development losses against other income in Ireland?

Yes. Trading losses incurred in your self-employment can be set against your other income (e.g., PAYE salary) in the same tax year, or carried forward and offset against future profits from the same trade.