Why Invest in Ireland?

Ireland’s low tax (12.5%) regime and extensive double tax treaty network, allied to our EU/Eurozone membership, labour force and other business advantages, has helped position Ireland as a leading location for foreign direct investment.

For example, investment by US companies in Ireland at the end of 2008 (USD146bn) was greater than the combined US investment in the “BRIC” countries of Brazil, Russia, India and China.

Many MNC's which first invested in manufacturing facilities in Ireland have now added other functions and activities in order to maximise the benefits of their Irish presence and the skills pool available.

Ireland is increasingly being selected by MNCs as the low taxed hub or “principal” company for their international business. These structures provide a robust and sustainable EU approved low-tax platform to manage a group’s international business and deliver overall group effective tax rate benefits.

Ireland is also an attractive location for holding companies due to its favourable domestic tax law provisions and the range and scope of its tax treaties and EU Directives.

Examples of some of the functions being undertaken by MNCs in Ireland include:

• Low-tax profit centre
• Operational headquarters/holding company
• Shared services
• Intellectual property management and licensing
• Research & development
• Cash pooling/treasury
• Finance/leasing

The information contained on this webpage and in the documents attached is based on taxation law and practice as at 3 April 2010.