Ireland exposed to FDI whims

Ireland’s ability to attract foreign direct investment (FDI) from outside of the EU is more vulnerable to changes in corporate tax rates than any other member state.

A study from the Economic and Social Research Institute (ESRI) estimates that Ireland would attract 4.3% less projects, from outside of the EU, per every 100 if the UK reduced its corporate tax rate from 20% to 19%.

Similarly, it said that if Ireland’s 12.5% corporate tax rate was increased to just 13.5%, the move would reduce the country’s chance to be chosen as a location for new FDI projects from non-EU countries by 4.6%.