How Quintas Capital Approaches EIIS Investing: 50% Tax Relief Social Infrastructure Projects

Our Approach

Our approach to EIIS (Employment and Investment Incentive Scheme) investing is purpose-built to minimise downside risk while maximising the 50% tax relief available to investors. The result? A compelling proposition that combines strong tax efficiency with prudent investment selection. We’re not looking for exponential growth returns. Instead, we focus on profitable businesses that generate cash from operations and are structured to return the investment, along with an agreed coupon, after four years.

EIIS is one of the few remaining tax reliefs that can be used to offset total income, including rental income and share options. It allows individuals to claim up to 50% income tax relief on qualifying investments of up to €1,000,000 invested annually.

However, not all EIIS-qualifying investments carry the same risks and returns.  The maximum 50% tax relief is reserved for pre-revenue companies, or those who ‘have not operated in any market’ - and that’s where we focus.

At Quintas Capital, we specialise in pre-revenue EIIS-qualifying projects, particularly those with a social infrastructure element. These include:

• Childcare centres

  
  

• Renewable energy assets

  
  

• Sports and hospitality developments

Each project typically involves the purchase or development of physical assets - land, buildings, or specialised facilities - which serve as a foundation for value creation and downside protection.

Unlike conventional start-ups, these businesses hold tangible fixed assets and often have a clear path to revenue generation post-construction or fitout. This gives investors exposure to the highest tier of tax relief (50%), while investing in companies that are anchored by real-world value.

The Risks Involved

Pre-revenue companies are inherently risky - but if your investment is funding the acquisition or development of a tangible asset, the risk profile shifts. In our experience, this structure offers three key advantages:

1. Downside Protection: Land and buildings retain value.

2. Predictable Exit Paths: Our investments are structured around redeemable equity, meaning the company redeems the shares after four years, returning capital with a fixed coupon. A bank refinance, coupled with free cashflow reserves, is the most likely exit option.  

3. Aligned Incentives: Founders are required to invest their own capital - typically at least 10% - ensuring strong alignment between promoters and investors.

Quintas Capital’s typical EIIS investments range from €1 million to €5.5 million per company, with individual investor commitments between €25,000 and €1,000,000.

By prioritising projects in regulated sectors like childcare and renewable energy, we not only mitigate financial risk but contribute to high-impact areas of Irish society. Take, for example, our recent €4.5 million investment in Zenith Childcare, a project designed to expand vital childcare infrastructure across Ireland - a social good, in an area where demand outstrips supply, and an asset-holding EIIS opportunity.

Every investment we make is built on four pillars:

• 50% EIIS tax relief

• Tangible asset ownership

• Experienced founding teams with committed capital

• Redeemable equity structures

Once an investment is made, we provide quarterly reporting and maintain active oversight via our investment committee. The goal is simple: to give investors visibility, confidence, and an informed view of their portfolio. We also join the company’s board enabling additional oversight.  

How the Numbers Stack Up

Let’s say you invest €100,000 in our fund. You should be eligible for €50,000 in income tax relief, reducing your net cost to €50,000.

If the investment is redeemed after four years with a 20% uplift, your gross return is €120,000. After our 2% success fee, your net proceeds would be €117,600. Combined with the tax relief, this equates to a targeted IRR of 17%+ per annum.

Of course, these are illustrative figures - no investment is guaranteed, and the EIIS scheme comes with conditions. But they highlight the power of combining tax relief with a carefully selected portfolio. All EIIS investments are classified as ‘high-risk’, so it is advisable to proceed with some degree of caution and not put all of your eggs in one basket. As with all investments, a diversified approach is preferred.  

We’re actively investing in 2025 and 2026

If you’re involved in - or are aware of - pre-revenue, real estate focused projects that meet these criteria, we’d love to hear from you.  

At Quintas Capital, we’re always on the lookout for compelling EIIS opportunities that combine strong social impact with real-world value. Get in touch by reaching out to us at info@quintascapital.ie to discuss how we can work together.