laws?

That's neat. So, does that give your hostel a chance to make a little money in the beginning when you first open?

Relatively yes, but definitely reduces tax and profit tax costs. So it makes you to pay even less taxes, also offers long term deduction costs, etc. Please consult with an accountant about this matter... and follow their instructions! :)

Anyways, another question of mine: when it comes to financing does everyone go through a bank, private investors, etc? What do investors expect back from you, or does that depend? Just curious as to what people have done to get up and started with their hostels.

Well, it might be either good to invest in a property, but especially due to subprime property crisis, all banks are getting nervous giving loans to anyone. The best would be if you could both gather an investor and apply for a loan, so you have more chances to be approved! Irish properties are rather expensive, so definitely make a good business plan first, and concentrate on the ROI (Return of Interest), break even point, start up costs, etc. If it still sounds a good plan, you may want to start but I'd recommend to talk with some hostels about your plan in the surrounding cities (obviously not the same town you want to open), and build up connections...