Why Vivier Mortgages believes the business world is taking notice of Ireland's recent record growth rates
Vivier and Co
16 February, 2015
DUBLIN, IRELAND The 'Celtic Tiger' is an epithet frequently ascribed to Ireland by analysts commenting on the country's unprecedented economic success in recent decades. Ireland boasts an open economy shaped by visionary governments and the creative economic policies they have inspired. Forbes now recommends Ireland as one of the best countries in the world for doing business.
Ireland's landscape is studded with high-performing corporations and high-tech multinationals, which together run the full gamut of industry. Fourteen out of 21 of the world's leading financial services firms are located in Ireland. Nine out of 10 of US information and communications technology companies are established there. Fifty per cent of the world's commercial aircraft held under leases are owned by aircraft leasing platforms established in Ireland. Ireland is the 9th largest banking market in the world. To name just a few of the operators in these sectors is to pinpoint a veritable Who's Who of established global companies, including the likes of Intel, Citi, Microsoft, Fujitsu, Huawei, General Electric and AWAS.
It may well be asked: How did Ireland evolve from a rural, undeveloped country to a vibrant economy posting record growth rates unrivalled by any other EU member state? The answer: Pivotal to its success is its tax regime. Corporation tax is levied at a rate of 12.5%. Nor is there any withholding tax on interest and distributions to non-residents. There is an innovative holding company regime in place and provision exists for a 25% R&D tax credit. An added incentive for small companies incorporating in Ireland is exemption from corporation tax for the first three years of trading, where the potential tax liability is less than 40,000 p.a.
Yet another compelling reason for setting up a company in Ireland is the state's extensive network of Double Taxation Treaties with 71 countries across the globe. Complementing the taxation regime, too, is an impressive network of infrastructures - telecommunications, energy, water and transport underpinning and enhancing the efficient operations of industry players and facilitating international connectivity. The availability of a highly skilled workforce in Ireland, boasting a vast reservoir of technical and professional expertise, has also been a critical factor in Ireland's economic success.
Whilst Ireland has not been entirely insulated from the effects of the financial crisis of 2008, the country is on the road to full recovery. According to last September's quarterly national accounts, Ireland's economy is now growing at its fastest rate in seven years. The figures, confirmed by the Central Statistics Office, show the strongest growth since early 2007.
Moreover, a statement issued by the European Commission in November 2014, declared that Ireland is set to become the fastest growing country in the European Union. In its autumn 2014 economic forecasts for EU member states, the European Commission observed that Ireland's second quarter figures had displayed "significant momentum across the board." Ireland's strong performance was reflected in the admiration of European vice-president, Jvrki Katainen. Commenting on Ireland's positive economic indicators, he needed just two words. He said simply, "Congratulations Ireland!"
About the Author
Luigi Wewege is the founder of Vivier Group and serves as the Managing Director of Vivier Mortgages a Dublin, Ireland based home loan company as well as CEO of its Auckland based financial services arm Vivier & Co, a boutique Financial Service Provider in New Zealand, offering no-cost, above average returns for investors.
Vivier Mortgages is a Dublin, Ireland based home loan company. It has specialised in secured property lending, principally for domestic mortgages and building projects, for nearly twenty years. It has recently been acquired and is currently looking for new opportunities in Ireland in the areas of property acquisition, redevelopment and regeneration.
« Go Back to Blogs