Hot tips for cool opportunities in Ireland

For a small country, Ireland punches above its weight in attracting inward investment. This article explores why this is, and has some tips for potential investors.

Why consider Ireland?

• Ireland is a longstanding member of the European Union (EU), providing access to other EU markets. It is English-speaking, with a well educated workforce;
• The tax regime in Ireland is attractive to investors;
• Ireland has tax treaties with all major Asian jurisdictions including China, Hong Kong and Singapore;
• Track record – the ever growing list of multinationals located in Ireland shows the long-term strategic benefit of being there.
• Business minded lawmakers – the legal and tax regime in Ireland is suited to the needs of investment into the country.

In particular

• The tax rate for trading companies in Ireland is 12.5%. Most businesses in Ireland enjoy a low effective tax rate, generally with no withholding on repatriation of profits or interest from Ireland to China. The especially favourable tax treaty between China and Ireland, combined with Irish domestic tax rules are attractive for investors.
• For a Chinese investor taking shares in an Irish company, the shares can generally be sold by a Chinese investor free from capital gains tax. In addition, there is no dividend withholding tax on dividends and interest paid from Ireland to China. In reverse, the treaty also enables a reduction of Chinese withholding tax on dividends where the shareholder has at least 25% of the voting power.