Over 1,700 multinational companies call Ireland home. In this blog we’ll discuss 10 reasons why multinational companies are attracted to the small island.
1. European Union Membership
Multinational companies that
expand to Ireland, immediately gain access to the European market which is one
of the biggest markets for global consumers. In an Economist Intelligence Unit
report, 46% of respondents highlighted "access to EU markets", as the
most competitive advantage of doing business in Ireland.
After Brexit, Ireland became the
official English-speaking country in the EU whose native language is also
English. This irradicates the issue of
there being a language barrier especially for US companies.
Ireland's low corporate tax rate
of 12.5% is a factor that attracts multinationals (EU average is 27%), especially
US Tech companies such as IBM, Google, Apple and Facebook (now known as Meta).
These companies would've had to pay a high rate of 35% if they had stayed in
their home country. Ireland has also been ranked number one for ease of paying
taxes by PwC.
The Irish government invests
heavily into R&D much of which goes into the tech industry. In 2020 the
government allocated €869.2m to R&D activities in an effort to make Ireland
a “global innovation leader” (Harford, 2021). Leo Varadkar has also stated that
the government will continue to give R&D “funding priority” in the years to
come and this is highly attractive to multinationals.
Dublin is home to more than 2,200
startups, many of which are launched by former employees of the big tech
companies. LEO and Enterprise Ireland are two big sources of grants and support
for startups. Silicon Docks is slowly becoming the new home of the startup and
this is very attractive for those abroad, looking to get into the industry
Ireland has a young, talented and
highly skilled workforce and this is very attractive to multinationals.
According to IDA Ireland, 62.3% of Irish people within the age of 23-34 have
completed third level education. Ireland also has a 93% participation rate in
education among 18-year-olds (the highest in Europe). These two statistics make
Ireland one of the most educated countries in the EU.
According to the Financial Times,
Ireland has the youngest population of the EU - half of the population is just
under the age of 34 (Europe’s youngest workforce). Alongside the huge pool of
talent, the young population gives multinational companies some assurance that
they'll have employees in the long-term.
Ireland is
a welcoming, diverse and multilingual country. There’s strong dedication to
promoting inclusion and diversity in both society and businesses. The IDA states
that there are 200 nationalities in Ireland.
As a society Ireland is encouraging
more girls and women into STEM careers. 32% of software developers in Ireland
are women, which is 2% more than the EU average.
Being Europe’s most westerly
country on the Atlantic coast, Ireland benefits from abundant wind energy and
fast wind speeds. According to IDA Ireland by 2030, 80% of electricity will be
from renewable sources. This is of huge benefit to multinationals as climate
change is a prevailing issue and going green is something companies strive for.
This small island has been ranked
to have the second highest standard of living in the world and it offers one
the highest life satisfaction in the OECD. This is attractive to US tech
companies as there is assurance that Ireland would be able to provide a high
quality of life for their employees who may need to relocate.
As you can see there an abundance of reasons why Ireland is top choice for multinational companies. For more on the topic you can visit: Why Ireland?

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