Ireland Capital Dublin Currency Euro (EUR) Language English Population 4.1 million EU status member GDP 2006 $202.9 billion Employment 95.7% Exports $119.8 billion f.o.b. (2006 est.) Imports $87.36 billion f.o.b. (2006 est.)

setting up business Number of days to start business 19 Cost (% of income per capita) 0.3% Nonwage labor cost (% of salary) 10.8% Total tax rate (% profits) 25.8%

Ireland

New development in Dublin, the heart of a fast-growing economy

In recent years much has been made of individual characteristics of Ireland’s attractiveness for inward investment. However, it is no single ingredient which sets Ireland apart from its competitor countries. It is a mix of ingredients which taken together add up to a very competitive proposition.

These include Ireland’s open and transparent tax regime, a standard 12.5% corporation tax rate which applies to all companies. Equally important are the double taxation agreements with 44 countries and the favorable tax incentives given to intellectual property and to Research & Development investment. Our relatively young and well-educated workforce is also of key importance. With one of the youngest populations in Europe, this ensures both a capacity for growth that will far outstrip that in other EU countries and a continued supply of high quality labor for companies locating here.

Keeping The competitive edge

The IMD World Competitiveness Yearbook 2006 ranks Ireland’s education system fourth out of 60 countries surveyed for meeting the needs of a competitive economy. The fact that Ireland is a democratic and politically stable state with one of the fastest-growing economies in the world is also a major consideration for companies making significant investment decisions. The 2006 Index of Economic Freedom, compiled by the Wall Street Journal and The Heritage Foundation categorizes Ireland as a “Free Economy” and ranks Ireland third out of 157 countries worldwide. It also states that Ireland is one of the world’s most pro-business environments, especially for foreign businesses and foreign investment and that Ireland’s policy framework promotes an open and competitive environment.

Ireland’s location and its membership of the EU is another reason why US companies choose to locate in Ireland. Ireland offers many opportunities for companies to establish a viable base from which to access the lucrative European market of over 500 million customers. Quality-of-life issues are also a factor. US companies want to locate in areas where it is relatively easy to attract high-quality staff, and Ireland is considered a safe place to live with a clean, green and wholesome quality-of-life image.

The Irish government actively promotes foreign direct investment (FDI), a strategy that saw total FDI stock grow from €53 billion in 1998 to €141 billion in 2005. In 2005 Ireland attracted $2 billion in US manufacturing investment flow, as compared to Germany’s $4 billion.

A new focus

Up to the recent past, the principal goal of state investment policy has been employment creation. More recently the Irish government has supported efforts by foreign-invested companies to sustain their international competitiveness through R&D enhancements, productivity improvements and the marketing/sales of higher-value goods and services.

Since 2005, Ireland has emerged as a magnet for US internet/digital media investment, with industry leaders Yahoo, Google, and Amazon making Dublin the hub of their respective European operations. In 2006, Amgen and Eli Lilly announced investments worth a combined $1.4 billion in Cork, now a global center for the biopharmaceutical business. Other US global companies with operations in Ireland include Microsoft, Intel, Dell, eBay, Pfizer, Wyeth, McDonalds and Coca Cola, to name but a few. Evidence of Ireland’s continued attractiveness as a location for US companies can be seen in the success of the Industrial Development Authority (IDA), the Irish government agency with responsibility for securing new investment from overseas in manufacturing and internationally traded services sectors. In 2006 the IDA negotiated 71 new business projects which will involve a total investment of €2.6 billion over the coming years.

investing in the future

The Irish government has committed to spending €184 billion over the next seven years under its recently published National Development Plan. This investment in infrastructure, education, science, technology & innovation (STI) and in social infrastructure will help ensure Ireland continues to meet the requirements of its growing population and of the business community.

Today over 600 US companies have chosen to locate in Ireland, investing over $63 billion and providing direct employment to over 100,000 people while supporting a further 250,000 jobs in Irish industry. With such significant investment, it is extremely important that the American Chamber of Commerce is actively working with the government and our members to ensure the business environment remains competitive and to raise public awareness of the importance of US investment in Ireland.

The American Chamber of Commerce in Ireland is the representative body for US companies based in Ireland at both government and industry level, and within the Irish and international media. Using our voice to drive key issues impacting on our members and to positively promote the role of US companies in Ireland, the American Chamber of Commerce continues to expand and deepen our relationship with the Irish government.

 

Contact Information

American Chamber of Commerce in Ireland
6 Wilton Place
Dublin 2
Ireland
Tel: +353 1 661 6201
E-mail: info@amcham.ie
Website: www.amcham.ie

 

Useful websites

www.amcham.ie	American Chamber of Commerce in Ireland
www.irlgov.ie	Irish Government
www.ida.ie	IDA Ireland
www.cso.ie	Central Statistics Office
www.rte.ie/business	Business News
www.ireland.ie	Visit Ireland

 

All pages are copyright of © Roxby Media Ltd - European American Business is a Roxby Media publication.