Low tax Ireland’s biggest draw for foreign investors

IRELAND’S low corporation tax rate is the most positive element that attracts foreign direct investment into Ireland, according to a new index launched today by Matheson Ormsby Prentice (MOP).

The MOP FDI Index, compiled by Amarách Research, surveyed 250 Irish-American business leaders in the US and investigated their perceptions of Ireland as a place to invest, their attitudes towards foreign direct investment and the factors affecting it.

The most positive attributes identified as important by US corporations considering Ireland as a location for FDI were its competitive tax regime (29%), the fact that it is English-speaking (21%), ease of access from North America (18%), Government incentives (17%) and skilled workforce (17%).

The negative attributes identified by US corporations considering Ireland as a location for FDI were national financial instability (20%), inefficient government (17%), instability in the Euro zone (15%) and remote location and restricted access (9%). The survey shows that 58% rated Ireland as a ‘good’ place to do business, while one third (32%) said they would be ‘likely’ to set up operations in Ireland and 37% of those surveyed said their attitude towards setting up operations in Ireland had become more positive over the last five years.

Managing partner at Matheson Ormsby Prentice, Liam Quirke, said the findings of the survey overall are extremely positive.

“FDI is the cornerstone upon which our economic recovery is dependent.

“Ireland’s profile and reputation has taken a real battering in the midst of the global financial and economic crisis.

“Both domestically and internationally, many have focused on the negative; this does not tell the full story.

“FDI in Ireland has remained very active and the results of the inaugural MOP FDI Index confirm that despite the period of global recession over the past two years, Ireland’s offering to US multinational corporations remains one of the strongest in the world,” he added.