Taxes and labour cheap in Ireland

IRISH cities are cost competitive when compared to other high income cities in the EU15 and US, due to Ireland’s broadly competitive labour costs, international transportation costs, and taxes on labour and profits. This is according to research from the National Competitiveness Council (NCC).

However, all EU15 and US locations assessed in the report are more expensive than Singapore, Bangalore and Budapest.

The costs of utilities, property, and key services are relatively high in Ireland.

However, the report shows that Cork, Limerick, and Galway have strong cost advantages over Dublin in many sectors.

Labour costs (59%) dominate business costs in Ireland followed by property (11%), utilities (9%) and transport costs (4%). All other costs account for 17% of total costs.

Relatively low Irish taxes on labour further enhance Ireland’s overall labour cost competitiveness.

Irish insurance costs are competitive. Ireland, and particularly Dublin, is expensive for IT services, accountancy and legal services.

The greatest cost competitiveness is in the food processing, medical technologies and engineering sectors.

Dublin ranges from 10% more expensive in food processing to 18% more expensive in biotech R&D and telecom software.