Staff at the European Banking Authority (EBA) will not pay income tax in the Republic should the organisation decide to move here from London after Brexit.
The Department of Finance has just published a brochure selling Dublin to the European Commission as a location for the authority, which oversees banking regulation in the EU.
It will have to move from its current location in London to a new one within the bloc once the UK leaves. The Government has been trying to convince the commission to relocate the EBA to Dublin, against competition from cities such as Paris, Rome and Luxembourg.
According to the brochure, EBA staff will not pay Irish income tax should the authority move to Dublin. They will also be exempt from paying duty on such things as cars should they bring them into the State for their personal use.
This applies to all decentralised EU agencies, not just the EBA. Those working for the organisation in London already benefit from those conditions.
However, staff could face a pay cut should they move here as their salaries would be adjusted in line with the cost of living. The EU’s calculations indicate that Dublin is cheaper than the British capital.
A Department of Finance spokesman said that the brochure had to include details on the employees’ terms and conditions. Around 160 people work for the authority.
Promoting Dublin
The brochure features the Minister for Finance, Michael Noonan, who is leaving office this week, and Minister of State for Financial Services, Eoghan Murphy, who could move to an alternative role after Leo Varadkar takes over as Taoiseach.
The department’s spokesman pointed out that the pair have “worked very hard” on promoting Dublin as a location for the EBA. “Both ministers were eager to sign off on it,” he said.
The department sent the 25-page full-colour brochure to the European Commission and the media on Tuesday. It outlines Dublin’s advantages, including the city’s financial services sector, the fact that it is English-speaking and is “commutable” from London, while staff are working on moving families here.
It fails to mention the housing shortage, but deals with schools, infrastructure and public transport. This section includes references to the Metro North, which will not be completed for 10 years, and the as yet unfinished Luas cross-city line.
Other attractions the brochure highlights include Dublin’s cultural life, the fact that there are 50 golf courses within reach of the city along with suitable places for hill-walking, hiking and other activities.
