Ireland is increasingly being chosen as a base for leaders with global roles and global teams in large multinational corporations. This is due in part to Ireland’s reputation as a location of choice for business and talent – and our position as the transatlantic gateway to Europe for the US. What other reasons make Ireland such a good location for international businesses and how can we continue to attract them?
Ireland’s position in the global market as an international business hub has become even more important, especially given the internationalisation of the economy, says Alan Connell, managing partner of Eversheds Sutherland. “Ireland now has the highest FDI per head of population within the top 10 FDI destinations in Europe.
“Put simply, Ireland’s offering is a powerful combination of benefits. In addition to providing the free movement of goods, people, capital and services within the EU’s single market, Ireland offers a low-tax, EU and Eurozone jurisdiction with a pro-business environment, talented workforce and the necessary physical, legal, regulatory and commercial infrastructure of a highly developed OECD jurisdiction, with the ease of connection to the rest of the EU and US with direct flights. As such, Ireland provides an attractive platform for multinationals and their leadership teams to do business both in Europe and beyond.”
Ireland’s approach enables companies to set up swiftly, with minimal red tape, in a connected English-speaking and common law environment. “The talented and youthful workforce is well educated, mobile, ambitious and adaptable,” says Connell. “As a country, Ireland combines competitive salaries with a high standard of living to attract talent from every corner of the world. It is the people, rich with creativity, skills, and culture, who drive Ireland’s – and its FDI investors’ – success.”
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Brexit benefit
Ireland has benefited positively from Brexit, says John Patrick Shaw, country head at Legato. “Our nearest neighbour chose to leave the world’s biggest marketplace. Where Ireland can easily operate without restriction, the UK now faces barriers, which causes friction.
“We know businesses have relocated to Ireland because they want frictionless business. The other thing about Brexit is the uncertainty. For a long time it was a mystery, there was no clarity. Businesses couldn’t price in the risk, so they couldn’t invest. If it was clear, they could have made a decision. Whereas with Ireland part of the Eurozone there was no uncertainty.”
Home-grown talent
Historically when subsidiaries were being set up in Ireland they weren’t coming with senior roles, which were going to the UK or other parts of the EU, explains Mark Jordan, chief strategy officer, Skillnet, adding that senior roles are now being based here.
“That speaks to the type of talent that’s being developed through these organisations as they set up their presence and footprint,” continues Jordan. “They’re seeing there’s a lot of home-grown talent and see that there are a lot of candidates here in Ireland to choose from and develop a strong workforce from.”
Jordan says that can be attributed to the education system, the learning development, training and talent creation that exist afterwards, and Ireland being a hotbed for career progression and opportunities.
How to overcome barriers to attracting more leaders
Colin Forbes, partner and head of global employer services at Deloitte Ireland, says a key consideration when determining substance is where the company’s senior leaders are located. Ireland must remain competitive from a personal taxation perspective to attract these senior global leaders.
“Ireland’s 52 per cent marginal tax rate is one of the biggest barriers that companies face when trying to relocate senior leaders and their teams to Ireland,” says Forbes. “While we have one of the highest personal tax rates in the world, the marginal tax rate also applies at a much lower income level in Ireland than in other countries. The Government will need to consider an overall reduction in the marginal personal tax rate to compete with other jurisdictions for senior talent.”
The Special Assignee Relief Programme (SARP) is an important measure to attract senior leaders to Ireland, says Forbes. “It is important to note that many other jurisdictions offer similar regimes to expatriates, such as the Netherlands and France, to name but a few. Therefore, it is vital that Ireland has a best-in-class regime when compared with those countries.”