How much does it cost to start a restaurant in Ireland?

Starting a restaurant in Ireland typically costs €57,000-162,000 including legal setup (€6,000-14,000), kitchen equipment (€25,000-75,000), furniture (€15,000-40,000), and technology (€3,000-8,000). Plus 3-6 months working capital.

What licenses do I need to open a restaurant in Ireland?

You need: FSAI food business registration, local authority food business registration, planning permission for restaurant use, fire safety certificate (>30 occupancy), and liquor license if serving alcohol (€4,000-8,000).

What is the VAT rate for restaurants in Ireland?

Restaurant meals are charged 13.5% VAT for dine-in and hot takeaway. Cold takeaway food is 0% VAT. Alcohol is 23% VAT. Register early to reclaim €5,000-15,000 in setup VAT on equipment and renovations.

How long does it take to open a restaurant in Ireland?

Opening a restaurant typically takes 16-24 weeks: business setup (4 weeks), food business registration (4-6 weeks), planning permission (8-12 weeks), and operational setup (8-16 weeks). Plan for longer if applying for liquor license.

Do I need HACCP certification to open a restaurant in Ireland?

Yes, the restaurant owner or designated manager must have certified HACCP (Hazard Analysis Critical Control Points) training. You also need a written food safety management system based on HACCP principles.

Start a Restaurant Business in Ireland (2025) | PayVat

Restaurant Business Requirements in Ireland

Restaurants have unique licensing, VAT, and compliance requirements beyond standard business setup.

Food Business Registration

Planning Permission

Commercial premises license and planning permission for restaurant use.

VAT Registration

13.5% VAT rate on restaurant meals. Register early to reclaim setup VAT.

Restaurant Setup Checklist (2025)

Complete step-by-step checklist for opening your restaurant in Ireland.

Phase 1: Business Foundation (Weeks 1-4)

Business Structure & Registration

Choose limited company for liability protection. Register with CRO (€125-200)

Business Bank Account

Open dedicated business account. Expect €5,000-15,000 initial deposit requirements

Tax Registration

Obtain Tax Reference Number and register for VAT (13.5% on meals)

Phase 2: Food Business Registration (Weeks 2-6)

FSAI Registration

Local Authority Registration

HACCP Training

Complete food safety training. Owner/manager must have certified HACCP training

Phase 3: Premises & Licensing (Weeks 4-12)

Planning Permission

Apply for change of use to restaurant. Can take 8-12 weeks (€65-700 fee)

Liquor License (if applicable)

Apply for on-license. District Court application (€630 + legal costs €3,000+)

Fire Safety Certificate

Building Control Authority certificate required for >30 occupancy

Phase 4: Operational Setup (Weeks 8-16)

Staff Registration

VAT Compliance Setup

Automated VAT calculation, compliance monitoring, and deadline reminders for restaurants

POS System & VAT Compliance

Install certified till system for VAT-compliant receipts. Setup PayVat for automated compliance

Restaurant VAT Compliance in Ireland

Restaurants have complex VAT requirements with different rates for dine-in, takeaway, and catering.

VAT Rates for Restaurants

Restaurant Meals (dine-in)13.5%

Hot Takeaway Food13.5%

Cold Takeaway Food0%

Alcohol23%

Catering Services13.5%

VAT Registration Benefits

Reclaim Setup VAT

Equipment, fixtures, renovations - typically €10,000-50,000 in recoverable VAT

Professional Credibility

VAT number signals established business to suppliers and customers

Cash Flow Management

Bi-monthly filings help manage seasonal restaurant cash flows

B2B Opportunities

Catering contracts, corporate accounts often require VAT registration

Automate Your Restaurant VAT Compliance

PayVat provides automated VAT calculation for restaurant sales, generates compliant receipts, and files bi-monthly returns. Professional compliance service.

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Restaurant Startup Costs Ireland (2025)

Realistic budget breakdown for opening a restaurant in Ireland.

Essential Setup Costs

Company Registration€125-200

Food Business Registration€150-500

Planning Permission€65-700

Liquor License€4,000-8,000

VAT Compliance Service€500-1,200

Legal/Admin Total€6,000-14,000

Operational Setup Costs

Kitchen Equipment€25,000-75,000

Furniture & Fittings€15,000-40,000

POS System & Technology€3,000-8,000

Initial Stock€5,000-15,000

Marketing & Signage€3,000-10,000

Operational Total€51,000-148,000

Total Restaurant Startup Investment

Minimum

€57,000

Typical

€162,000

Plus 3-6 months working capital (€15,000-30,000) and premises costs (rent, deposits, renovations).

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Common Restaurant Startup Mistakes to Avoid

Learn from others' costly mistakes when opening your restaurant in Ireland.

Mistake: Not Registering for VAT Early

Many restaurants wait until they hit the €85,000 threshold, missing out on reclaiming setup VAT on equipment and renovations.

Cost: €5,000-15,000 in non-recoverable VAT

Mistake: Poor VAT Registration Timing

Delaying VAT registration until mandatory threshold, missing opportunities to reclaim setup costs and establish professional credibility.

Cost: €10,000+ in non-recoverable setup VAT and credibility issues

Mistake: Poor Cash Flow Planning

Underestimating working capital needs and not accounting for 3-6 month ramp-up period before profitability.

Result: 40% of restaurants fail within first year due to cash flow

Mistake: Manual VAT Management

Trying to handle complex restaurant VAT rates, different tax rates for dine-in vs takeaway, and bi-monthly filings manually.

Cost: 15-20 hours per month + penalties for errors

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