Over the past 10 days, I was able to see Dublin through various lenses. From governmental agencies we were introduced to big ideas for an even more prosperous future for the city, but on the flip side we explored the sensitivity of Dublin’s economic past. Business is drawn to Dublin, and the other developing cities such as Galway and Cork for various reasons.
The biggest factor drawing in foreign investors and the headquarters of international companies is the tax incentive. The largest companies who have global or European headquarters in Ireland can pay as low as 5% and for small enterprises, I believe their corporate tax rate is about 12%. This is extremely low compared to the United States, and other attractive European Union countries. The other appeal of Dublin is the amount of talented workers with high levels of education. The city is very diverse and young and the hiring pool to draw from is a great opportunity when considering where to move or begin business.
Something that made me rethink the prospect of working in Ireland was the income tax. While corporate tax is so enticing, the income tax stands at about 50% for citizens no matter your income level. This would make finding workers very difficult at least in my opinion. Another deterrent of workers is the housing market; it is almost impossible to find someone to live as a foreigner. Another consideration is the fluctuation and possible instability of Ireland. The country could be drastically affected by event happening in other countries. An example of this is the market crash in 2008 in the United States. A possible source of instability is Brexit. Although Ireland has been settled since medieval times, it has only become modern in the past 30 years. And in continuation of that, the citizens and the government are still learning to grow in a steady way.
Overall any business venture is a risk. When considering all of the factors, I believe it makes sense to have an international company based in Dublin, or one of the developing cities, if you are in the technological, pharmaceutical or financial industry. The talent you need for a strong innovative company is already there, and I believe the opportunity is greater than the risk.