Attractions of Ireland as a Location for Business
Words provided by Smart MBS
Over the last 50 years, Ireland has established an unrivalled reputation as a location for business.
Foreign business leaders consistently remark on how Ireland is decidedly pro-business and how the legislative and taxation frameworks promote one of the most open and competitive business environments in the developed world. Ireland is home to many of the world's leading companies including the top 5 global software companies, 14 out of 15 of the top medical tech companies, 18 out of 25 of the top financial service companies, 8 out of 10 of the top industrial automation companies and all 10 of the top pharma companies. Names such as Intel, Google, Microsoft, Pfizer, Citi, Huawei, Fujitsu, Novartis, Facebook, Twitter, Bank of America and Barclays Bank are much in evidence in Dublin and other locations around Ireland.
Ireland is the only EU country which has a land border with the UK. With Brexit looming, Ireland is also set to be the only native English-speaking country within the EU. Globally, Ireland provides convenient international connections through airports in Dublin, Cork, Shannon and Knock. Ireland also offers the only US Pre-Clearance Facilities within the EU.
Ireland is home to a young, highly educated workforce. Almost a third of the Irish workforce is under the age of 25. Ireland also ranks in the top10 globally for both the quality of the education system and the transfer of knowledge between universities and companies. Over 30% of third-level students are enrolled in STEM courses (Science, Technology, Engineering and Maths) providing companies setting up in Ireland with industry-ready employees.
Competitive Tax System:
Ireland's tax rates have been one of the principal elements of the favourable enterprise environment for over 30 years. The tax regime is open and transparent and complies fully with OECD guidelines and EU competition law. It is available to all companies large or small and whether they are Irish owned or foreign owned Ireland has a standard rate of corporation tax of 12.5% for all trading income. Trading has a very, very broad definition and covers just about every type of business. Other income, which is really passive income, is taxed at 25% Other interesting tax benefits available in Ireland include: 100% tax relief on the purchased cost of IP, a 25% tax credit on all qualifying research and development activity, in addition to an attractive Knowledge Development Box rate of 6.25% for qualifying companies. There are also significant corporate taxation reliefs available for new start up companies in their first 3 years of operations.
Ireland has also entered in to Tax Treaties with over 70 jurisdictions. On the personal side, there are significant tax reliefs available for high earning executives moving to Ireland, during their first 5 years in the jurisdiction.
Ireland in the Face of Brexit:
While Ireland obviously offers itself as an attractive location for business globally, for UK based companies, Ireland has become a particularly attractive option for business relocation in the face of Brexit. In a period of political and economic uncertainty for UK-based companies, Ireland's pro business environment, tax friendly policies and highly educated work force, can provide UK companies with a secure EU base for their business to flourish.
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