Ireland is seen as the gateway to Europe for many U.S. and multinational companies accessing European and International markets. Post Brexit, we are the only English- speaking member of the EU which has a legal system based on common law principles.
Here we look at the six main reasons Ireland is chosen as a destination to invest in:
One of the key factors in firms taking the decision to invest in Ireland is our favourable tax regime. The tax regime is designed to be competitive and to facilitate innovation and enterprise.
Ireland’s taxation rate for corporations is 12.5%, which is the second-lowest in the EU and it is a key feature of its economic policy. In addition, there is a 25% Research and Development (R&D) tax credit and there is an effective 6.25% preferential tax rate on income arising from intellectual property.
2. Labour and Talent
Ireland’s vibrant, young and highly educated workforce has been a major factor in attracting foreign direct investment (FDI) into the country. Our young population and consistent investment in education ensures a plentiful supply of highly qualified workers.
It ranks in the top 10 globally as an education system that meets the needs of a competitive economy
We rank in the top 10 globally as an education system that meets the needs of a competitive economy. Our Universities and Institute’s of Technology rank among the best in the world including Trinity College, Dublin; University College Dublin and the Royal College of Surgeons in Ireland.
Young people in Ireland have among the highest levels of education in the world, according to a recent Organisation for Economic Co-operation and Development (OECD) report showing that 56 per cent of 25-34 year olds in Ireland had received higher or further education. The average for the OECD is 44 per cent.
This Irish score is the highest in Europe and the fourth highest in the world, followed only by Korea, the Russian Federation and Canada.
3. Access to EU market of 500 million consumers
Ireland’s membership of the European Union gives direct access to a rich, sophisticated market of over 500m people and 28% of World GDP. Our membership of the EU simplifies trading with most of the EU.
4. Track Record
Ireland is home to many of the world’s leading high-performance companies including Intel, Google, Facebook, Huawei, Takeda, Fujitsu, Novartis and Citi to name just a few.
Today, over 160,000 people are directly employed in over 700 US firms in Ireland. US firms indirectly support a further 128,000 jobs in the Irish economy, in total accounting for 20% of employment in Ireland. Collectively US investment in Ireland amounts to $444bn with companies such as Apple, Linkedin, Aercap, AWS/Amazon, Pfizer, Boston Scientfic, Avolon and Air BnB having chosen Ireland as a centre of operations and employment.
- 8 of the top 10 global software companies
- 15 of the top 15 US technology companies
- 10 of the top 10 global pharmaceutical corporations
- 9 of the top 10 global medical technology companies
- 20 of the 25 leading financial services firms globally
- 9 of the 10 global aviation lessors
5. Diplomacy and Neutrality
Ireland is a parliamentary, representative democratic republic and a member state of the European Union. It is considered among the safest nations in the world. Over the years, Ireland’s policy of military neutrality and the values it encompasses, coupled with the lack of a colonial past, has served it well in being a constructive member of the international community.
Ireland has become a significant player in world diplomacy and according to the Economist, on a per-head basis; Ireland has a good claim to be the world’s most diplomatically powerful company.
In June 2020, Ireland won a seat on the UN Security Council, a 15 member international body that has primary responsibility for the maintenance of international peace and security. This was seen as a solid indication of the high level of respect we hold among the nations of the world.
In July 2020, Ireland’s Minister for Finance, won the race to become president of the infuential Eurogroup, which comprises each of the finance ministers of the Eurozone.
Ireland’s Philip Lane is the European Central Bank’s Chief Economist and is seen by many as the leading brain in European economic policy at this time and is effectively the academic counterweight to the abilities of ECB President, Christine Lagarde who is a politician.
Joe Biden’s victory in the US Presidential Election is seen as a diplomatic coup for Ireland. Biden is a regular visitor to Ireland, his great-great-grandfather emigrated from Ireland in 1850 and he is deeply proud of his Irish roots. This relationship could prove influential in terms of the impact of Brexit, our influence within the European Union and continued US multinationals investment into Ireland.
Ireland’s Dr Michael Ryan is an Executive Director in the World Health Organisation (WHO) and is one of the key decision makers leading the WHO’s response to the coronavirus outbreak.
6. Culture and Lifestyle
Ireland is a great place to live and continually scores high on international surveys on standards of living and well-being. It offers an affordable cost of living compared to other parts of Europe with an inclusive, access-all education and health service.
Though traditionally an island of emigration, this has changed over the last number of decades and Ireland is an increasingly multicultural society where people from other countries feel comfortable and at home.
As well as being known for traditional music, dance and poetry, Ireland has produced a wealth of writers, musicians and sports stars that have had great international success.
The island of Ireland is well known for its natural beauty with its rugged coastline, green landscape, inland waterways and mountain ranges providing so much to explore outdoors for residents and visitors alike. Some of the most iconic attractions include the famed Cliffs of Moher, the Giant’s Cuaseway and the Ring of Kerry.
Forbes recently named Ireland as one of the world’s most cinematic destinations.
Skellig Michael, County Kerry: Where filming took place for both Star Wars films; The Force Awakens and The Last Jedi
Immigrant Investor Programme (IIP)
It is not hard to understand why we are starting to see that Ireland has also become a top destination of choice for High Net Worth individuals in Asia looking to emigrate.