A recent study valued the transatlantic economy last year at $9.5 trillion (€8.2 trillion), up from $8.7 trillion the previous year. Given the Republic’s unique position as the EU’s only English-speaking, common-law member state, it is in a valuable position as a US gateway to Europe.
“Ireland’s long track record of being a stable and pro-business location of investment by US multinationals, together with its strong workforce demographic, provides a very compelling offering for US multinationals looking for a European base,” says Louise Kelly, global trade strategy and resilience lead at Deloitte.
“In addition, Ireland’s 12.5 per cent corporate tax rate, an effective rate of 15 per cent for groups in scope of Pillar 2, the generous R&D tax credit rate recently increased to 35 per cent and recently introduced participation exemption for foreign dividends is an attractive proposition.”
Not alone does the State have a young and well-educated talent pool, “as part of the EU, Ireland provides MNCs with access to talent from across the EU and beyond,” Kelly points out.
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Improvements in immigration policies and processing times is proving particularly helpful for employees relocating to the Republic from outside the EU right now.
“As multinationals set up European headquarters in Ireland, they often second one or more employees to Ireland to help with the set-up, cultivate the culture and so on,” explains Kelly.
The recent extension of the Special Assignee Relief Programme (SARP), which provides an income-tax relief for people assigned to work in Ireland from abroad is particularly welcome, she says.
“In recent years, we have seen Ireland being used a European hub for digitalisation and AI activities. A recent report from the Expert Group on Future Skills Needs found that AI jobs have doubled since 2023 and that Ireland is amongst the top-performing counties in the world in respect of both the demand for and the supply of AI talent.”
The Republic’s corporate tax regime is attractive for such hubs. “Recent positive changes such as the increase in the R&D tax credit to 35 per cent, when coupled with IDA research, development and innovation grants, means that Ireland’s offering for R&D activities to be located here is best in class,” says Kelly.
In the current geopolitical climate, that matters perhaps more than ever
“Given recent disruption to global trade norms, many organisations are reviewing their supply chains and seeking ways to enhance their resilience. In some cases, this involves digitalisation and AI programmes. Given Ireland’s strong talent pool and attractive tax regime, it can play a role in supporting US MNCs’ transformation journey.
“It is important that there continues to be a focus on increasing Ireland’s competitiveness. Recent progress on infrastructure for housing, water and energy must continue as these are critical to support continued investment into Ireland.”
The Republic is also attractive from a customs and trade perspective. “Ireland has proved to be a stepping stone to Europe for many US companies looking to expand their sales into the EU Single Market, with its approximately 460 million customers,” says Carol Lynch, partner in BDO’s customs and international trade services department.
Importing into the EU on a member state by member state basis can be a complex operation, with 27 different customs authorities, 27 customs systems and a myriad of languages and brokers to contend with.
“Using Ireland, however, as a first step into Europe allows companies to import into one member state, clear customs here in Ireland, and then have full access to the EU without further customs requirements,” Lynch points out. “Internally VAT may still need to be accounted for, but this simplifies the process.”
Indeed, it is about to become even simpler in coming years as the EU focuses on a single customs clearance system which will allow companies to physically import into any member state but make one customs declaration through their head office.
“Therefore, for companies established in Ireland, the logistical operation may become easier notwithstanding, again, import VAT requirements,” says Lynch.
Along with access to the Continent, Ireland is also ideally placed as an access point for sales into Britain, she points out.
“Added to this is the fact that Europe increasingly demands a company have a presence in Europe to access the market. Without such a presence it is almost impossible to engage a clearance agent to act on your behalf. If you are not established here, then the clearance agent has to take on joint and several liability which is not something most agents will do.”
Along with this there is, in many industries, a requirement for an EU representative to ensure compliance with EU health and safety requirements. For example, to import beauty products into the bloc you will need a “responsible person”, with an EU address, who must maintain at their address the relevant product safety files.
Finally come all the various EU regulations around sustainability and the import requirements relating to CBAM – the EU’s carbon border adjustment mechanism – deforestation and packaging laws.
“Again, it is easier to deal with one country on those issues and, in particular for US companies, an English-speaking country,” says Lynch.
“Ireland has as a result built a strong reputation as a leading jurisdiction in which to scale internationally. Ease of doing business, political stability, EU and euro zone membership and a highly educated, flexible and productive talent pool, alongside a favourable tax regime, tend to be the areas that score highly in any international comparisons that are conducted.
“Familiarity of language, laws and local customs can go a long way to making a success of doing business internationally.”
