Ireland has rapidly established itself as a leading destination for innovative businesses and multinational companies seeking a European base. In 2024, Irish tech firms raised over €400 million in funding, with cybersecurity, fintech, and travel technology sectors receiving the highest levels of investment.
National supports such as Enterprise Ireland, along with accelerators like Dogpatch Labs and regional innovation hubs in Kerry and Galway, have been instrumental in fostering growth and job creation outside of Dublin. Investor sentiment remains strong, with 66 percent of foreign direct investment (FDI) decision-makers expecting Ireland’s attractiveness to increase over the next three years. Recent expansion announcements from global firms, including 100 new AI and data science roles from PayPal, give a real nod to Ireland’s ongoing momentum in innovation-led sectors.
Why Ireland?
1. Generous R&D Tax Credit Scheme
A key reason companies invest in Ireland is the availability of the Research and Development (R&D) Tax Credit. The Irish regime offers a 30 percent tax credit for qualifying R&D expenditure, including salaries, materials, software, and outsourced R&D activities.
Unlike schemes in other jurisdictions, Ireland’s R&D tax credit is equitable for companies of all sizes and profit/ loss positions, accessible to companies across all sectors, and available even during the pre-trading phase. This makes it particularly attractive to early-stage high-growth firms and global companies investing in local R&D operations. With the right advice, the guidance is clear and generous and an opportunity not to be missed.
2. Competitive Corporate Tax and IP Incentives
Ireland’s 12.5 percent corporate tax rate remains one of the lowest in the European Union and companies can achieve significant tax efficiency, especially when holding intellectual property in Ireland.
This tax regime has supported the growth of sectors such as pharmaceuticals, medical devices, software, and financial services. Ireland also offers a Knowledge Development Box regime for income derived from qualifying IP, further enhancing its appeal to innovation-driven businesses.
3. Skilled, Educated and English-Speaking Workforce
Ireland has a highly educated and mobile workforce. Universities are closely aligned with industry, particularly in science, technology, engineering, and mathematics (STEM) fields. As the only English-speaking member of the EU, Ireland also offers a major advantage for companies seeking to establish European operations without language barriers.
The availability of international talent and flexible immigration pathways further supports companies building global teams from their Irish base.
4. Streamlined Incorporation and Business Environment
Companies can incorporate in Ireland in as little as three to five business days. The legal and regulatory frameworks are clear and flexible, and the country ranks highly for ease of doing business.
Professional service providers in Ireland are well-versed in supporting international expansion, offering corporate, legal, tax and compliance solutions to both early-stage companies and multinationals.
5. EU Market Access and Brexit Advantage
Following the UK’s departure from the European Union, Ireland has become the natural choice for companies seeking English-language operations within the single market. Many firms previously headquartered in London have since moved EU functions to Dublin. This includes fintech, financial services, and regulated entities that require EU authorisations.
Dublin is now a core hub for companies such as Stripe, Coinbase, and JP Morgan, all of whom have expanded their Irish presence to retain access to the European market.
6. Strategic Location and Time-Zone Benefits
Ireland’s location in the Greenwich Mean Time (GMT) zone provides overlapping business hours with both the United States and mainland Europe. This facilitates efficient communication and operations across global teams.
The country also benefits from modern infrastructure, high-speed connectivity, and proximity to major data centres and cloud infrastructure providers.
7. Strong Institutional and Government Support
The Irish Government has committed over €100 billion to capital investment through its National Development Plan. Agencies such as IDA Ireland and Enterprise Ireland offer practical and financial support for companies establishing or expanding their operations in Ireland. This includes grant funding, talent development programmes, and links to research institutions.
These supports underpin a long-term strategy to position Ireland as a leading European innovation centre.
Case Studies and Industry Presence
Ireland’s "Silicon Docks" in Dublin is home to global leaders such as Google, Meta, LinkedIn, Airbnb and Microsoft. Collectively, these companies employ thousands of professionals in data science, product development, AI, and cloud services.
In the life sciences sector, companies including Pfizer, Merck, Johnson & Johnson and Abbott operate significant R&D and manufacturing operations in Ireland. Many of these organisations leverage both the R&D tax credit and the local talent base to drive innovation in healthcare, pharmaceuticals and diagnostics.
Summary: Key Reasons Ireland Continues to Attract Investment
Key Factor | Business Impact |
30% R&D Tax Credit | Reduces net R&D costs and enhances cashflow |
12.5% Corporate Tax Rate | Supports efficient global tax planning |
English-Speaking, Highly Skilled Workforce | Enables rapid scale-up of local teams |
EU Market Access | Ensures regulatory alignment and cross-border trade |
Fast Incorporation and Business-Friendly Legal System | Reduces friction in expansion planning |
Strategic Time Zone | Aligns with global operations in US and EU |
Strong Public Support and Infrastructure Investment | De-risks long-term commitment to the Irish market |
So THAT's why they choose Ireland
Ireland has developed a compelling value proposition for companies focused on innovation, research, and global expansion. With generous R&D tax incentives, a competitive corporate environment, access to top-tier talent, and seamless EU integration, Ireland continues to be the jurisdiction of choice for start-ups and multinationals alike.
Whether your business is scaling a new product, seeking to consolidate intellectual property operations, or expanding EU presence, Ireland offers a strategic platform for sustainable growth.
At R&D Tax Solutions, we enable companies of all sizes to benefit from the first-in-class incentives that Ireland had to offer. Get in touch today and see how we can help boost your innovation budget.
