Over the past couple of years, Ireland has been seen as a good investment destination for numerous multinational companies. This isn’t at all surprising considering its business-fueled environment.
Ireland has plenty to offer foreign businesses and investors. From their flexible and highly skilled workforce to their low corporate tax rates, there are so many reasons to invest in Ireland.
Ireland’s membership with the Eurozone and EU provides investors easy access to the EU’s internal markets. After Brexit, Ireland happens to be the only English-speaking country in the EU with a legal system based on common principles of law.
Both of these factors combined, as well as many others, have caused Ireland to become one of the most favored countries for foreign investment.
In 2016, IMD’s World Competitiveness Yearbook had ranked Ireland as the 5th best among the OECD and even 1st place from the Eurozone for overall competitiveness for foreign investments. Consequently, Ireland also ranked 7th in the world, which is pretty impressive.
Why do so many world leaders prefer Ireland?
While Ireland’s tax regime is quite attractive and well-publicized, they have a lot more to offer than tax advantages. When we talk about it from a global perspective, Ireland bags a very high score based on various factors for organizations that are planning on investing. This is why Ireland is currently home to the headquarters of numerous multinational companies (MNCs).
From our standpoint and experience with various international business clients and partners, we have a very detailed understanding of why Ireland is an investors’ dream come true. We will try and summarize everything we know in the following reasons to invest in Ireland:
Skilled labor available
Ireland is a great source for young, adaptable, flexible and mobile workers. This country has always been known for its dependability and excellence in education and you should demand no less for your organization.
In addition to this, Irish employment law is known for providing fairgrounds between employers and employees. In other words, employers will have to abide by a friendly set of regulations, whereas employees will be afforded appropriate protection by Irish employment law.
Moreover, Businessandfinance.com published that Ireland is like heaven for recruiters because at least 40% of their population is below 30 years of age. Also, Ireland ranks 1st in the world for the availability of senior management and 3rd for the most productive workers in the world. Before we move on, it is also important that we mention that this country ranks in 4th place for the most motivated skilled labor in the world.
Easiest place to establish your business
Incorporating a new corporation or registering your international branch in Ireland is a quick and straightforward procedure. Even the World Bank published in their ‘Doing Business’ report that Ireland is one of the easiest countries to establish a business.Availability of Financial Services
The single European Market has a foundation built on the mutual recognition of certain business licenses and even the ability to move some of these licenses from one jurisdiction to another in Europe. This is why Ireland is seen as an attractive platform for banks and various financial institutions, including insurance undertakings, payment institutions, investment firms, and electronic money institutions, who are trying to get into the single European market.
The last time we checked, there were 22 banks established within Ireland, and over 400 more that had shifted their operation to Ireland. Also, over half of the globe’s 50 best banks have established their internationally-focused operations here.
Low tax rate for corporations
Ireland has a 12.5% tax rate for corporate trading incomes and it is known as one of the lowest statutory onshore corporate tax rates all over the world. It is crucial to understand that this corporate tax rate isn’t much of an incentive regime as it is a standard tax rate applicable for all active businesses from all sectors or industries.
Relief available for internationally hired staff
Among the key reliefs of staff being assigned from abroad includes the Special Assignee Relief Programme, a.k.a. SARP. This program offers income tax relief on a portion of the income earned by workers assigned to businesses in Ireland. This could be a great advantage for companies that are just starting out in Ireland, and their key personnel are currently in the process of moving.
Tax credit in research and development
Ireland offers companies the opportunity to avail 25% tax credit for their years’ liability of corporation tax. The credit being offered is only available to companies participating in in-house research and development functions that qualify, including buildings, machinery, and plants.
Attractive regimes for holding companies
Ireland has very attractive regulatory, legal, and tax regimes. This, combined with its accommodating and inviting business environment, is why Ireland has managed to establish itself as a world-class business location and the perfect place for the headquarters of various international companies.
Availability of technologies
The Emerald Isle has a very rich history of achievements in the fields of science and technology and is constantly investing in the growth of its technological and research capabilities. Perhaps the most recent example of this could be seen when many large technological organizations invested in developing data centers in Ireland. For instance, Apple announced that they are building a data center worth €850 million in Co. Galway.
English as a mother tongue
Ireland counts as one of the two English-speaking members in the Eurozone. This is an important consideration for a company that is considering establishing a European base.
Great track record
Over a thousand multinational corporations are currently expanding their operation to Ireland because of the success and profitability of Irish operations. Ireland has also been offering barrier-free entry for over 500 million consumers from within Europe.
Other reasons why you should consider investing in Ireland
There aren’t just 10 reasons to invest in Ireland; there are so many more. Although, the ones we highlighted above have the biggest impact on your business’s well-being. Let’s shed some light on other honorable mentions:
Ireland’s Commercial Court can be described as a specialist court that was designed to be able to facilitate speedy resolutions for business disputes. All actions and cases are heard by very experienced commercial judges and managed accordingly. Nearly 90% of all the cases in this court are resolved within just one year.
When it comes to arbitrations, Ireland has adopted the UNCITRAL Model Law of International Commercial Arbitration. Also, Ireland happens to be a signatory of the 1958 New York Convention for Recognition and Enforcement of Foreign Arbitral Award.
Ireland plays host to over 1200 international company headquarters or their operations and is still attracting numerous companies. These companies belong to diverse sectors such as life sciences, ICT, financial services, engineering, internet, or business services.
A large number of these companies have also undertaken strategic activities such as global business services, R&D, and advanced manufacturing in Ireland.
To put things in perspective, Ireland was chosen by at least 9 of the top 10 software, ICT, and pharma companies throughout the world. Also, they play host to 13 of the 15 best companies for medical technologies as well as 15 of the 25 best financial institutions in the world.
Now let that sink in.
It is quite clear from all of the above that Ireland has numerous advantages for business owners besides just tax benefits. All of these reasons combined lead to this country being one of the best places for foreign direct investment.
From our years of experience, we would advise businesses growing internationally and looking for international locations to set up as their base of operations to consider Ireland.
If you have any further questions, leave a comment below and we’ll be more than happy to get back to you with a researched and well-thought-out answer to your queries.