Over the last couple weeks I have learned a lot about Ireland and the effect it has on business decisions. Through company visits, guest speakers, and lectures, I have collected a number of main pros and cons of doing business in Ireland, which I will explain in the following section. After this, I will then discuss my personal opinion of whether or not I would invest in Ireland.
As far as the pros of doing business in Ireland, there are some pretty convincing points. After all, there must be a reason why so many businesses move into Ireland. Some of these pros are:
- Low corporate tax rate (12.5%)
- Only English speaking country in the EU (beneficial for English speaking businesses)
- Diverse and young employee pool
- Strong ties to EU markets
- Supportive government body for businesses
These things sound pretty convincing, but there are also some key cons to note about Ireland before making a final decision. The mains cons to doing business in Ireland are:
- High personal tax rate-this makes it harder to attract employees to work in Ireland, especially with how easy it is to work in other countries in the EU
- Not a good market for products- many companies have headquarters in Ireland, but few produce goods there due to the lack of demand
- Laws protecting intellectual property and consumer private data are drastically different/more strict
- An economy highly dependent on other countries- Ex. the housing market crash in the US bankrupting Ireland
Now that the pros and cons have been laid out, I will explain my personal logic considering expansion of a business into Ireland. For example, if a company is asking if they should expand into Ireland, I would say it depends. It depends on the type of business they have as well as their goals for expanding into a new country. If a company has a lot of international influence as well as risk dispersion, I think it is a great idea to expand into Ireland and even form a headquarters there. Conversely, if a company wants to build a factory and sell to the local market, Ireland may not be the best place to do this. Overall, Ireland can be a very good option for a company as well as an easy pass.