Why Ireland Attracts The Big Names In Business

Did you know Ireland has one of the highest GDP per capita?

According to Statista, Ireland’s gross domestic product growth per capita will continue rising to new peaks for many years. It’s a great time to be doing business here.

Setting up a business in Ireland is popular due to the 1000+ multinational enterprises with substantial operations.

Attracting big brands like Microsoft, Google, Pfizer, and Facebook make Ireland the best country in the European Union to do business.

So, what sets Ireland apart from other EU nations?

In this article, we look at the reasons Ireland is a huge attraction for businesses of all sizes, starting with the taxes.

Low Corporate Tax

When you compare the corporate tax rates of nations worldwide, you will see that Ireland has a corporate tax of only 12.5%, among the lowest in Europe and globally.

The UK’s corporate tax rate is 19%, which is competitive, though it is topped by Germany’s 15.9% and, of course, Ireland’s 12.5%.

Hungary’s corporate tax rate is just 9%, and in Switzerland, the tax rate is even less at 8.5%; however, Ireland has other tax incentives for business.

Investopedia Ireland only charges 6.5% for revenue associated with a company patent or intellectual property.

Research and Development Tax Credits

Businesses involved in buildings, machinery, plants, etc., are qualified for getting the tax credit if they have in-house research and development activities. They can get a 25% tax credit against the tax liability of the current year corporation.

Transfer Pricing

Ireland allows companies to use transfer pricing to shift profits from high-tax jurisdictions to low-tax jurisdictions and thus lower the tax liability of the parent company. This action has come under the radar with the EU TP Directive, sure to capture more businesses.

Income Tax Exemption For Non-Irish

As per SARP or the Special Assignee Relief Program, employees from outside the country will be exempt from the income tax they earn while working in Ireland. It is a big incentive for companies newly established in the country.

Skilled Labour

Ireland has a young population, and it has highly employable graduates. Therefore, you can expect an adaptable, flexible, young, and vibrant workforce. That is an attractive proposition for setting up a business in Ireland and why 1000 multinationals have already taken the plunge.

Ease Of Doing Business

The openness and accommodating nature of Ireland’s business environment is conducive to doing business, which is why the country has become the number one choice for multinational companies to establish their headquarters.

There has not been even a single instance when companies were harassed by unfair tax policies. This is the kind of track record that gives assurance for companies to plan and execute their long-term business goals.

Advanced Technologies

Ireland has a long history of achievements in technology and science, as they invest a lot of money in researching technological capabilities. That is why most established IT companies have their data centers in the country.

English Speaking Nation

Unlike most European countries, Ireland is an English-speaking nation. Therefore, most companies considering establishing a base in Europe choose Ireland. It allows them to run their business seamlessly without worrying about the language barriers they could typically face in most other European countries.

Proven Track Record

Ireland is a country that offers seamless access to more than 50 million consumers in Europe. Almost all the multinational companies that have invested out here have been able to grow and expand their facilities due to increased profitability. Therefore, the country is considered one of the safest places for making investments and achieving operational success.

Special Concessions For EEA Countries

Companies from countries in the EEA or the European Economic Area do not require permission to conduct business in Ireland. They have programs like the Start-up Entrepreneur Program and Immigration Investor Program, allowing people from EEA and Switzerland to set up their business.

Registering a Limited Company When You’re Non-Irish

The best way to register for a company as a non-Irish is through a company formation agent.

Completing the formalities required for setting up a business can be time-consuming. Here is a list of what’s required.

• Certificate of Incorporation
• Company Constitution / Memo & Arts
• Share Certificates
• Company Officers Schedule
• Secure Document Storage online
• Booklets for Directors & Secretary

Outsourcing Company Secretary Requirements

If you want to start on a low budget, you could go for the company secretary service. The company formation agents will provide you with a dedicated office address and a dedicated person to take care of your company secretary’s requirements.

By outsourcing your secretary requirements to Ireland, you can have expert professionals take care of the tasks. More importantly, your company will be fully compliant with business formation laws.

From the US to Ireland

Moving from the US to Ireland to work in your own company involves careful planning and consideration of various factors.

Taxation has been discussed; however, for personal tax – you will need to familiarize yourself with the Irish personal tax system, including income tax rates and any applicable deductions or credits.

Visa

Moving from the US to Ireland has specific visa requirements for entrepreneurs or business owners in Ireland. You may need a visa to work and run your company legally. The good news is that US citizens can move to Ireland with minimal hassle.

Any US citizen or resident can stay in Ireland for three months without a visa.  During this time, get to know the local cultural differences and research housing and accommodation.

Before committing to emigrating from the US to Ireland, consider schools, healthcare, and other essential services for your family members.

When the decision to move has been made, set up a bank account for your personal use, and as you are used to private healthcare, check out what Ireland offers for you and your family.

Summary

If the GDP statistics by Statista are anything to go by, Ireland is one of Europe’s most business-friendly countries.

It’s a tax haven and a great place to secure skilled workers. There is more to it, though, as Ireland is a beautiful country to reside in and enjoy a more easy-going lifestyle.

Setting up your business in Ireland to grow your presence in Europe makes perfect sense, particularly for American companies.