Ireland caused a sensation in the summer of 2016. The statistical office of the country announced economic management. That had risen by a massive 26.2 per cent within a single year. One single company made the difference because Apple had reorganized its tax affairs. From this point on, Apple’s intellectual property’s license fees no longer flowed to the headquarters in the USA but the subsidiary in Ireland. The move to Europe resulted in a dramatic increase in Ireland’s economic balance sheet. This move by Apple once again demonstrated how attractive the island is for international companies.
The country is popular with foreign investors. You can see that in the statistics of the ten largest global technology companies. Because not only Apple has settled in Ireland, but also Facebook and Google. They all appreciate the business location. But this does not only apply to large corporations but also many small companies. More than 1,400 foreign companies from a wide range of industries operate in Ireland. The advantages Ireland offers are apparent.
Easy Startup And Low Taxes
The island is a member of the European Union. It has low corporate taxes, a strong economy and a skilled workforce. The country has thus acquired the reputation of being an ideal country for company locations. After Great Britain leaves the EU, Ireland will remain the last English-speaking country in the international community. The economy continues to grow, which allows a wide range of companies to settle here.
One of the reasons for this is a startup culture that makes it easy for companies to set up a new company. The place of jurisdiction is inexpensive, and all regulations apply to companies not based in Ireland. The minimum capital for a stock corporation is only one euro. One hundred shares issued for one euro each are usually sufficient. If the amount is still below this limit, you can hold it in cash and not have to pay it into a company account.
Corporate tax is only 12.5 per cent. Under certain conditions, you can even reduce this tax rate to zero per cent. That applies to individual profits made by startups in the first three years of trading. The VAT is 23 per cent, but the VAT paid on the purchases is deducted from this. Also, companies can have 25% removed for qualified research and development expenses. All of these legal requirements naturally make Ireland a desirable location.
Starting a new company is easy and cheap, and the tax burden is manageable. There is also a sufficiently well-trained workforce. The population of Ireland is the youngest in the EU. Simultaneously, the country has the second-highest percentage of academics in Europe, just behind the UK. Entrepreneurs will find ideal conditions for setting up or setting up a company. That creates envious people, but Ireland has so far been able to continue on its successful path.