Invest in Dublin

Dublin is one of the most important cities in the European Union. The Irish capital city, Dublin is also the largest city in the country. Dublin is officially known as Baile Atha Cliath in Irish language. The English name Dublin is derived from the Irish name ‘Dubh Lin’, which means ‘black pool’. The city is located on the coastal region of the River Liffey at the center of Irelands east coast and amid the Dublin region.

The city of Dublin is primarily a primate city with majority of the population residing in the urban area. The city is home to about 1 million inhabitants, the population constitutes to about 25% of the total country’s population. The city of Dublin has its own independent city council that looks after all the administrative works of the city. Currently, Dublin occupies the 29th position in the Global Financial Centers Index and is listed by the GaWC as a global city with a Alpha ranking. Dublin is placed among the best 30 cities in the world to live in and do business.

The Irish capital city, Dublin boasts of being the most modern contemporary cultural centre and historical centre of the country. The city has the entire technologically advanced centre for education, arts and industries.

Facts:

It is no doubt that Ireland has been considered a strong global economic center since long time. Being a part of the United Kingdom, Ireland has been growing rapidly and Dublin being the capital of the country, development has taken place at a rapid pace.

Today, Dublin has a key role in the world economics, its economy has grown by leaps and bound in the recent past. The economic boom of Dublin received a further uplift when Ireland became a part of the European Union (EU) in the 1973. Since then, Dublin has become one of the fastest growing economies not only the European Union but also amongst all other cities in the developed world.

Trends:

Since Ireland’s inception into the European Union, the national economy of Ireland has undergone a radical change. The Dublin economy has been transformed from being a primarily a agriculture based economy to an economy based on high technology industries and the service sector. According to OECD reports, the economic growth of Ireland showed a dramatic growth between 1997 and 2005, the economic growth of the country during these years was about 3 times the economic growth of other member countries of European Union such as Belgium, Germany, France and UK.

The economy of Dublin showed a slight downfall between the third quarter of 2008 and fourth quarter of 2009, it could not escape the financial meltdown that affected the economies of the countries in the world. With the affects of global meltdown fading away slowly during the early parts of 2010, the economy of Dublin also improved drastically and by the fourth quarter it again became a strong economy once again, during the 3 and 4 quarter the Dublin economy grew at a steady pace at about 4% - 6%.  Experts also suggest that it will continue to grow at the same pace throughout 2011, unless there is any major catastrophe.

Market Size:

The Dublin region is at the centre road of the Irish economy and as per the reports released by the Dublin City Council, Dublin alone accounted for about 38% of the country’s GNP (Gross National Product). During the 1990’s and also during the early part of 2000’s the region expanded its economy by adopting strategies that mainly focused on development of private foreign investors and public sector partnerships. The strategy worked wonders by attracting investment by foreign investors in various sectors of Dublin, especially in development of tourism.

Today the success of attracting inward foreign investment strategy adopted by the Dublin city council has extended beyond the tourism sector. Foreign investors are investing heavily in several industries including aviation engineering, software and IT, Bio-tech (Pharmaceuticals and Research and Development centers) and financial services.

Key investment sector:

Dublin has a huge industrial sector and it provides myriad of opportunities for foreign investors to invest in different sectors. Some of the most promising industries that foreign companies can consider investing are:
•    Chemical engineering
•    Transportation Equipment
•    Food Production
•    Textile
•    Pharmaceuticals
•    Computer software
•    Electronics

 

FDI / Investment Policy:


The Federal government of Ireland has been proactive in attracting foreign companies to invest in the country, especially in major cities like Dublin. To encourage maximum investment in the city, the government of Ireland has laid out special investor friendly policies. The government has also made it a mandatory rule not to discriminate between foreign investors and local investors in terms of financial grants provided to them.
 

The grants are provided mainly in terms of tax exemption on investments. The government levies only about 12.5% corporate tax on the profits for all foreign investors. This extremely low tax structure is a crucial element to attract foreign investors in Dublin.
 

To facilitate International investors investing the country, Ireland has signed comprehensive double taxation policies with more than 56 countries. As per the agreement, foreign investors it allows the mitigation of double taxation. In addition to this favorable taxation policy, foreign investors can also benefit form the Irish domestic taxation laws that in place, these laws provides investors an exemption from certain types of tax on payment to treaty residents.
 

Special Incentives:
 

In recent years, Dublin has emerged as a favorite onshore location for several MNC’s (Multi National Corporations) establishing their local or global headquarters to manage their operations and shareholding with their international business counterparts.
 

The Irish government has set forth some tax legislation that has made Ireland a competitive location for foreign investment than other European nations. Owing to the attractive taxation polices, transparent and simple legal framework and its open business environment has made Ireland and its major cities including Dublin a world-class city for investment.
 

Foreign companies investing in Dublin can avail the following special incentives:


•    The Irish government grants double tax relief for pooling providing for unused credits.
•    The government of Ireland allows foreign investors to enter into an extensive treat with the government and are all allowed free access to EU directives.
•    The foreign investors are provided tax exemption on capital gains on disposal of qualifying shares.

Thus, Ireland with its amazing investor friendly polices and tax legislation, investors investing in the city are sure to enjoy valuable returns on their investments.
 

 

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