Ireland has become a hub for Foreign Direct Investment (FDI) with over 1,400 overseas companies established and with the support of the Irish Development Authority (IDA) continues to attract businesses from sectors including Technology, Engineering, Life Sciences, Business Services and Financial Services.
Ireland’s pro-business attitude enables companies to register efficiently. It is this ease of establishment that contributes to Ireland being ranked amongst the top countries in the world to do business. Ireland provides easy access to the European market for companies establishing a European base with access to a European labour force of approximately 250 million persons. We explore this further below and why Ireland continues to attract FDI.
1. Global workforce
Ireland is one of the world’s most open economies, proportionally it has the fourth highest international workforce in the EU. Ireland’s success in attracting investment through pro-business policies, committed EU membership and its youthful highly educated talent pool is globally acknowledged.
2. Pro-Business Environment for Multinational Companies
For Multinational Companies (MNCs), Ireland as an English-speaking country in the Eurozone, acts as a gateway to the European and US markets. Ireland is continually gaining attention from international investors as a highly sought-after destination for FDI. MNCs can continually explore new growth paths in Ireland, whether they choose to expand or transform with access to Ireland’s talented workforce.
3. Irish Government Policies
Ireland has a low corporate tax rate of 12.5%. A 15% tax rate only applies to companies with an annual turnover of more than €750 million. Companies in Ireland can also benefit from a Research & Development (R&D) tax credit. The credit operates by giving companies up to 25% of R&D expenditure (both revenue and capital) in a tax credit or in cash. The 25% R&D credit is available in addition to the 12.5% corporation tax deduction at the standard rate.
MNCs when considering a location for European establishment are seeking well-worn path. For decades the IDA and other Irish Government agencies such as Enterprise Ireland and Science Foundation Ireland have worked to identify emerging trends and foster a united and collaborative business ecosystem. It is the combination of Irish Government policies and the work of Government agencies that have made Ireland a globally recognised and trusted location for MNC operations.