In a recent AIB-commissioned Ipsos MRBI survey of multinationals in Ireland, the main reasons for setting up here were access to Europe, workforce talent, corporate tax rate, and that we are English-speaking. Some 86 per cent of companies stated that access to Europe was critical or important to setting up in Ireland while 97 per cent would recommend Ireland as a country to locate.
According to AIB head of international corporate banking Mick Murray, Ireland’s other strengths include its position as a natural gateway to Europe and the only English-speaking country in the eurozone. Other factors are our educated and adaptable workforce, attractive 12.5 per cent corporate tax rate, and a pro-business policy environment.
“There is a ‘can-do culture’ in Ireland – similar to the USA,” he adds. “Also, as a country we welcome new companies into Ireland and take pride in them setting up their EMEA headquarters here. The IDA does a fantastic job promoting Ireland and attracting new and existing investment.”
He believes Ireland’s excellent track record in attracting US FDI is at least in part due to the experience of American firms here. “The success and positive experiences of existing US companies in Ireland makes it a logical step for other American companies expanding to follow and of course it reduces the risk for companies investing in new geographies; success breeds success. We have also built an ecosystem around FDI firms.”
Other issues also come into play. “Ireland also offers a good lifestyle,” he says. “The intangibles and the quality of life available are important to retaining talent. Our beautiful country adds a richness to downtime that is simply unmatched.”
But there is a need to continue to ensure the country can continue to attract talent. “The Special Assignee Relief Programme (SARP) is a tax relief designed to boost the relocation of key talent into Ireland,” Murray notes. “It is very welcome as some overseas companies perceive personal taxation here as high and SARP is a step in the right direction.”