Ireland is one of the most attractive destinations in Europe for investments in life sciences, technology and global business services. The Republic’s enduring success as an FDI destination is bolstered by its stable tax policies that support investment, such as the R&D tax credit, which is a very competitive cash refund scheme.
It has a pro-business environment, political and economic stability, a strong labour market and a highly skilled talent base, and is located between the United States and Asia-Pacific markets. Additionally, it is an English-speaking member state of the European Union.
EY is a significant employer in Ireland, offering a broad and diverse range of professional services from assurance, corporate finance, tax and law to consulting and data analytics.
“Every day we work with a broad range of organisations spanning every sector of Ireland’s economy, from start-ups and private businesses through to well-established Irish PLCS and multinational FDI organisations,” says Rory MacIver, partner in international tax and transaction services at EY Ireland.
Over the past few decades, the State has successfully transformed itself from a low-cost, moderate skills economy into a high-skills, high value-add economy, says MacIver. This is largely through the creation of an ecosystem that places a premium on inward investment, particularly in highly skilled sectors, facilitates effective collaboration across business, government and academia, and supports the creation of new businesses that support the inward investment community.
“Ireland retains attractiveness but new challenges have emerged. These include the impact of Brexit, supply chain issues since the pandemic and infrastructural deficits across a range of areas,” says MacIver.
“Competition for mobile investment has intensified since the pandemic and the war in Ukraine, with the US in particular seeking to attract domestic investment through the Biden administration’s Inflation Reduction Act and Chips and Science Act.”
Alan Connell, managing partner and head of the tax group at Eversheds Sutherland Ireland, is also a member of the Eversheds Sutherland European executive committee and sits on the Eversheds Sutherland European board.
The Irish entity has since 2006 been part of the Eversheds network, a global top 10 law firm with 70 offices in more than 30 countries, and Connell is well abreast of global affairs.
“Ireland’s position in the global market as an international business hub has become even more important in recent times, given the globalisation of the economy. We are seeing particular evidence of this as increasing numbers of internationally focused organisations are seeking to establish operations here in order to access the EU single market,” he says.
“Ireland is a first-choice platform for international investment. At Eversheds Sutherland, when we talk to our US clients about investing in Ireland, they often see Ireland as ‘the quarterback’ for Europe and beyond. They are not necessarily investing in Ireland just to access the Irish market in and of itself – they see Ireland as the platform to emerge into new markets, and typically as the European strategic gateway jurisdiction of choice to operate in the EU single market.”
Ireland offers certainty in an uncertain world for multinational enterprises, with many large US corporates continuing to grow their footprint here. It offers certainty of commitment to the EU with access to the single market, certainty of access to global talent and skills, and certainty of legal and tax treatment.
“Given the election year we are in across the globe, Ireland offers political stability with all the major parties aligned on our fiscal, corporate and tax policies,” says Connell. “All of this offers a significant degree of comfort for international investors.
“Ireland has been at the forefront in ensuring long-term fiscal stability and certainty for businesses, whilst also adhering to best practices and regulations emanating internationally.”
The State’s signing of the OECD international tax agreement – with the retention of its statutory 12.5 per cent tax rate for businesses with annual revenues of less than €750 million – means no change to the corporate tax rate for about 160,000 businesses representing approximately 1.8 million employees, Connell points out.
“Ireland’s position in the global market as an economic powerhouse and strategic gateway jurisdiction to the European marketplace and beyond is something which we see continuing in the coming years,” he adds.