Ireland, a seemingly inconspicuous small country among many European countries, has been selected by Forbes as one of the most suitable countries for doing business in the world. Over the years, many of the world's top companies have set up their headquarters in Ireland, and many wealthy people have chosen Ireland as the best choice for overseas deployment.

Today, Xiaoxing will take you to learn more about Ireland's unique business advantages.

01

the economy is in good shape

In the past two years, with the lifting of prevention and control measures, the Irish economy has generally recovered and developed, significantly exceeding market expectations, including real estate, art and entertainment, information and communication, financial insurance and other industries.

According to data released by the Irish National Bureau of Statistics: GDP data in the first quarter of 2022 rose to US$130.804 billion, an increase of 11% year-on-year, leading among developed countries. If stable performance is achieved in the next few quarters, Ireland's GDP and per capita GDP in 2022 are expected to hit new highs (per capita GDP in 2021 is 99,000 US dollars), and it will be shortlisted for the "100,000-dollar club".

Meanwhile, the unemployment rate in Ireland fell to 4.2% in July, the lowest level in 21 years.

02

backed by the EU

Market size 500 million+

Ireland is a member of the European Union, the euro area, the European Economic Area, the OECD and other regional organizations, as well as a member of the United Nations, the World Bank, the International Monetary Fund and other international organizations. After Brexit, Ireland is the only country in the European Union whose first official language is English.

In terms of market size, doing business in Ireland will face a unified market of more than 500 million people in the European Union, and enjoy multiple advantages such as a customs union; in terms of geographical location, Ireland faces the Atlantic Ocean in the west, the Irish Sea in the east, and is separated from the United Kingdom. Facing the sea, it is the passage from North America to Europe. It is relatively convenient to travel from Ireland to countries such as the UK, Canada, and the US.

With a superior geographical location, a huge EU market, and an excellent business environment, how can Ireland not be attractive?

03

Multiple business preferential policies

Ultra-low corporate tax

Ireland only levies a 12.5% tax rate on business income, which applies to all industries. Compared to Australia (30%), China (25%), the US (21%) and the UK (19%) corporate tax rates are much lower.

Policy changes

In 2023, the Irish tax rate for companies with a turnover of more than 750 million euros will be 15%, and the tax rate for companies below 750 million euros will remain at 12.5%. Most companies still maintain the original tax rate and will not be affected.

Many tax breaks

In Ireland, there are several tax breaks:

Research and Development Tax Credit: In 2004, Ireland began implementing a 25% research and development tax credit scheme.

Exemption of patent interests: Ireland is exempt from tax on income from "eligible patents", which is capped at €5 million per annum. ("Eligible patents" include patents for research, planning, processing, experimentation, testing, design, invention, development or other similar inventive activity carried out in Ireland or elsewhere in the European Economic Area.)

Operating Loss Offset: If a company has an operating loss during the fiscal year, it can be offset from the tax payable. The specific offsets include: 12.5% of other trade income in the same accounting period, 12.5% of trade income in the previous accounting period, and 12.5% of some non-trade income.

Claiming capital allowances: Tax reliefs available for capital expenditure on the purchase, maintenance or capital expenditure on buildings and equipment when starting a business in Ireland.

In addition to the above-mentioned tax advantages, the tax rates of personal income tax, property tax, environmental tax, and energy tax are also very low, ranking the bottom of the EU.

Foreign income is not remitted and is not taxed

Irish tax resident income and income from outside Ireland is not taxed if it is not remitted to Ireland. Income and earnings prior to moving to Ireland can also be brought into Ireland tax-free.

Double taxation avoidance agreement signed with 72 countries

To facilitate international trade, Ireland has signed comprehensive Double Taxation Agreements with 72 countries, including China and the United Kingdom.

In the context of economic globalization, cross-border transactions may lead to double taxation due to differences in taxation policies in various countries. The signing of the "Avoidance of Double Taxation Agreement" means that the countries in the agreement will not tax the same taxpayer repeatedly on the basis of the same income.

04

Large-scale multinational companies in the world are rushing to settle in

Ireland is home to many of the world's top companies, including 9 of the top 10 global software companies and 9 of the top 10 global pharmaceutical companies. There are 13 of the top 15 global medical device companies and 15 of the top 20 global financial services institutions.

In addition, many famous Chinese companies have also visited Ireland.

Huawei

Huawei established an office in Ireland in 2004, and currently has 4 R&D centers. At the end of August 2019, it also announced an investment of 70 million euros in the Irish R&D department.

Tik Tok

Tik Tok established its EMEA Trust and Safety Center in Dublin, Ireland. As of January 2021, TikTok has more than 1,100 employees in Ireland.

China WuXi Biotechnology Co., Ltd.

China WuXi Biotechnology Co., Ltd. invested in the construction of the first production base invested and constructed by China in Dundalk, and plans to build it into a world-leading biopharmaceutical "factory of the future".

So far, there are more than 1,600 Irish multinational companies, which are world-renowned in various fields such as information and communication technology, biopharmaceuticals, financial services and aviation financial leasing.

Attractive and unique tax system, open and inclusive business environment, such Ireland is well-deserved by Forbes as the most suitable country for doing business in the world!