INVESTING IN IRELAND ISSUE 38, MARCH 2019 - PWC IRELAND
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www.pwc.ie/fdi
Investing in Ireland
Issue 38, March 2019
Happy St. Patrick’s Day and welcome to the March Please do not hesitate to contact myself, any member
2019 edition of PwC’s newsletter on foreign direct of our team, or your usual PwC Ireland contact at any
investment (“FDI”) in Ireland. stage. We would be happy to tell you more about the
topics raised in this issue or to include any interested
Ireland continues to see strong inward investment
parties on our mailing list.
from overseas with significant jobs and investment
announcements over the last few months (see page Remember to visit our FDI website for more updates
2). Strong economic growth also continues with 4.5% and detailed information (http://www.pwc.ie/fdi),
expected growth in GDP in 2019 and record levels of including a range of recent publications.
employment since 2008 (see page 8).
A newly published report by the IDA outlining Ireland’s
results for 2018 shows that record numbers are now
employed in the multinational sector (see page 4). This
issue also takes a look at why Ireland is a prime
location for companies in the aviation industry (see
page 5) as well as upcoming news and events in FDI
(see page 7). This issue also highlights a recent
Government announcement in relation to a change in
the Critical Skills Employment Permit (see page 6).
Liam Diamond
+353 1 792 6579
+353 86 405 6965
liam.diamond@pwc.com
1
Recent FDI investment
announcements
Autodesk, a global leader in design software, Hermes Investment Management, a leading fund
announced the opening of its new offices at 1 Windmill management company, announced that it has
Lane, which will serve as the company’s EMEA established a management company, Hermes Fund
headquarters Managers Ireland Limited, in response to the risks
posed by Brexit as well as the firm’s broader strategic
Clark Hill, an American Law firm, announced a
outlook and commercial expansion plans
merger with the Irish firm O’Gradys Solicitors giving it a
significant presence in Ireland IQVIA, a leading global provider of information,
innovative technology solutions, and contract research,
DePuy Synthes, a leading medical devices company,
announced plans to create 100 new jobs in Dublin
announced a €36 million investment in ground-
breaking research and development projects at the Meissner, a global leader in single use systems for the
Ireland Innovation Centre in Co. Cork, creating an pharmaceutical industry, announced plans to establish
additional 30 jobs a manufacturing facility in Castlebar County Mayo,
creating upwards of 150 jobs over the next 5 years
Expleo, a leading quality partner for digital business,
relaunches under new brand name, creating 150 jobs S&P Global Ratings, a leading provider of
and €8 million expansion in Ireland independent credit ratings, announced the opening of
its new European headquarters in Dublin, the Irish
Facebook, a global media company, announced
headquarters will be the hub of a very strong EMEA
plans to hire 1,000 people across 60 teams in Ireland in
network spanning 13 offices
2019, spanning the engineering, safety, legal, policy,
marketing and sales teams Salesforce, a leading customer relationship
management (CRM) platform, announced plans to
GW Plastics, a leading healthcare injection moulding
establish “Salesforce Tower” in Dublin’s Silicon Docks,
and contract manufacturing company, announced
creating 1,500 jobs over five years
plans to expand its advanced manufacturing
operations in Sligo creating 200 new jobs Truata, an expert provider of technologies and
solutions to maximize data analytics, announced the
opening of its new headquarters in Dublin
2
“We are excited about
locating our new facility in
County Mayo. The
availability of a skilled
work force and direct
access to required
services makes Castlebar
an ideal location for this
manufacturing facility.
“Ireland is the logical choice for our first
This is an important
expansion into Europe. It has the fastest
milestone for our
growing economy in the EU, while the EU
organization, and with the
itself is the second largest economy in the
outstanding support of
world. It is a very attractive destination for
the IDA, we are delighted
large numbers of the world’s leading
by how quickly this
businesses, and so developing a
facility will be
significant presence there is an obvious
operational.”
step for us.”
Max Blomberg, Director of
John Hern, CEO, Clark Hill Operations, Meissner
“The response to placing our EMEA HQ in Dublin has been
positive and we look forward to growing our presence here. We
have built an impressive team over the last year and look forward
to increasing our contributions to this vibrant community.”
Andrew Anagnost, CEO, Autodesk
3
Ireland 2018 Results
The IDA Ireland, the Government agency
responsible for attracting FDI to Ireland, recently
The highest number ever
released a report showing the results for FDI in
Ireland in 2018. The report shows that record
employed in the
numbers are now employed in the multinational multinational sector
sector, with an overall net increase of 14,040 jobs in - 229,057
2018. The report also shows that overall
employment figures in Ireland have increased by
7% in 2018. Largest regional
employment growth in
The report finds that Ireland has managed to
17 years
secure a number of Brexit related investments, with
overall figures showing 55+ investments approved,
along with 4,500+ associated jobs. Some of the
22,785 jobs created in
companies that have recently located or expanded
operations in Ireland include; Bank of America,
FDI companies in 2018
Morgan Stanley, Barclays, and Citi Group.
Ireland’s advantages in a post-Brexit context 58% of employment now
include; the use of the English language, located outside of Dublin
commitment to the EU, a common law system, and
the existing competitive proposition.
Two and a half times
more jobs added under
the ‘Winning’ strategy than
under the IDA’s previous
strategy 2010-2014
4
The Aviation Industry in Ireland
The aviation industry and Ireland have had a
special relationship since the first transatlantic
flight landed on Irish shores in 1919. Today, Ireland
is globally recognised as a centre of excellence
for the industry with the Irish Aviation Authority An Irish-leased
now responsible for managing 90% of all traffic aircraft takes off
that transits between Europe and North America.
So what makes Ireland so attractive to the aviation
every two seconds
leasing industry?
Ireland’s success can be attributed to many
factors including;
• Legacy experience which comes from 40 Over 50
years involvement in the industry; leasing companies
• A taxation regime which provides for a stable based in Ireland
and competitive headline rate of corporation
tax together with a tax depreciation write-off
period of eight years;
• A comprehensive double tax treaty network
with 73 countries currently in effect (and more
in the pipeline awaiting ratification and under
negotiation); Over 60% of all leased
• And being recognised as a centre of aircrafts worldwide are
excellence in this sector, with a highly skilled
and experienced workforce. owned or managed in Ireland
In January 2019, over 3,000 aviation finance
executives gathered in Dublin for the Global
Airfinance Conference. According to a recent
article published in Aviation Finance, this has Almost 80%
re-enforced Ireland’s position as a global leader in of Ireland’s double tax
the aviation industry. treaties deliver a
The sector continues to grow with many new favourable withholding
entrants continuing to use Ireland when setting up tax result for aviation
operations. CBD Aviation has recently extended finance companies
its fleet to over 200 aircrafts and developed
infrastructure in Dublin to support its expansion
effort, Barclays Bank has backed Genesis in their
new leasing platform which targets the
commercial aircraft market, and the newly created Ireland has an
Airborne Capital has secured a fund valued at $1
billion and has established offices in both Dublin
8 year write off of
and Shannon. capital spend for tax
You can also check out details of the upcoming purposes compared
Dublin Aviation Summit and Irish Aviation Gala with typical 20-25
Ball in our News and Events section.
year economic life
If you would like more information, please visit our
dedicated aviation finance page.
5
Immigration & Global Mobility
In a welcome move, the Government announced A new pre-clearance policy, which will apply to the
that the spouse or de facto partner of a Critical non-EEA de-facto partners of Critical Skills
Skills Employment Permit Holder will no longer Employment Permit Holders, is to be introduced
need an Employment Permit in order to work in from 1 April 2019. Applying to both visa and
Ireland. This is evidence of the Government’s non-visa required nationals, the intention is that this
commitment to fostering migration policies that are pre-clearance will give certainty and direct access
more flexible in responding to labour market needs. to employment to the individual prior to arrival in
Ireland.
The change means that spouses and de facto
partners of Critical Skills Employment Permit Stay in touch with our dedicated Immigration Team
Holders will now be eligible to reside in Ireland on and keep up to date with all the latest in Irish
“Stamp 1” conditions, allowing direct access to Immigration news here.
employment without the need to obtain an
employment permit.
Such a positive move will help to ensure that
Ireland continues to attract key international talent
and be a competitive location to live and work. It
also recognises that spouses and de facto partners
of Critical Skills Employment Permit Holders are
often highly skilled and will therefore represent
another talent pool to help address gaps in the
skills market.
6
FDI news & events
FutureScope and 17 of May 2019. The festival will include everything
from art and design to science and technology, and
FutureScope is a platform to foster engagement and
offer speakers from leading companies within the
collaboration between Ireland’s entrepreneurial
technology industry. Inspirefest is where leaders –
community and innovative multinational companies
representing every sector of the industry – come
and encourage the exploration of new business
together to seize new business opportunities, discover
opportunities arising from emerging technologies. The
the latest innovations, and strengthen relationships.
event will take place on 28 March 2019 in Dublin’s
Convention Centre and will feature approximately 100
Dublin Aviation Summit
speakers and panellists, along with 40 exhibitors.
The Dublin Aviation Summit will be held on 14 and 15
Dublin Tech Summit May 2019 in Dublin’s RDS. Now in its third year, the
event aims to bring together the leading names in IT,
The Dublin Tech Summit is Europe’s fastest growing
Interiors, Maintenance and Repair Operations,
tech conference and will take place on 10 and 11 April
Engines, and more to meet and network with the
2019 in Dublin’s RDS. In just two years, the Dublin Tech
thriving Dublin leasing community. During this
Summit has earned a place as Ireland’s largest tech
conference you can expect displays from hundreds of
event which brings together some of the most
exhibiting companies showcasing their products and
influential tech and business leaders for two days of
services, and a number of networking events to
growth & development, knowledge sharing, and
choose from.
networking. The Summit will see over 10,000
attendees from 70 different countries, 200 speakers,
Irish Aviation Gala Ball
and 300 global media representatives.
The Irish Aviation Authority will hold its annual Gala Ball
InspireFest on 24 May 2019 in the Clayton Hotel, Dublin. The event
will be in aid of the Irish Historical Flight Foundation
InspireFest is a unique international festival which will and the Temple Street Foundation.
take place in Dublin’s Bord Gáis Energy Theatre on 16
7
Economic GDP is expected to grow by 4.5% in 2019
update Unemployment is expected to decline to 5.1% in 2019
Irish property price inflation now at lowest level in two and a half years
Retail sales volumes for 2018 as a whole grew by 3.9%
Over 2.26m people are now at work in Ireland, the highest level since 2008.
Leading the way
1st 1st
in the world for: in Europe for:
• Attracting high value investment • Real GDP Growth1
projects2 • Investment incentives that are attractive
• Tax attractiveness for business to foreign investors1
models3 • Paying business taxes9
• Large city for FDI (Dublin) 4
• Changing Market Conditions1
• Economic potential4 • Flexibility and adaptability1
• FDI and technology transfer5 • Value added of Knowledge and
Technology Intensive industries1
• Secondary school enrolments1
• Science, technology, engineering, and
mathematics (“STEM”) graduates6
1st • Overall small European region of the
in Eurozone for: future (Dublin)4
• Relationship of pay to productivity5 • Small European region of the future for
• Attracting talented people from business friendliness (Cork)4
abroad5 • Overall micro European city of the
future (Limerick)4
• Micro European city of the future for
economic potential (Shannon)4
• SMEs selling online, e-commerce
1 IMD World Competitiveness yearbook 2018 turnover, cross-border SMEs online and
2 IBM Global Trends 2018 open data6
3 Digital Tax Index 2017: Locational Tax Attractiveness for Digital
Business Models • Innovators7
4 Global Cities of the Future 2018/19 – FDI Intelligence • IT & Communications (Dublin)8
5 The Global Talent Competiveness Index 2019
• Life sciences (Dublin)8
6 The Digital Economy and Society Index (“DESI”) Report 2018
7 European Innovation Scoreboard 2018
8 The World’s Most Competitive Cities report
9 PwC/World Bank Group “Paying Taxes” Report 2019 8
Would you like to know more? Should any of the topics covered in this newsletter be of particular interest to you, please do not hesitate to contact any member of the FDI team, or your usual PwC Ireland contact. If any of your colleagues would like to be included on our mailing list, please let us know. Please click on our website www.pwc/ie/fdi for additional information. Various topics of interest for foreign investors can be found in the publications link in the tax section, including: Brexit CEO Survey Budget 2019 Tax Facts 2018 Previous issue of Investing in Ireland
Contacts
Jean Delaney Mary Honohan Terry O’Driscoll
+353 1 792 6280 +353 1 792 8609 +353 1 792 8617
jean.delaney@pwc.com mary.honohan@pwc.com terry.odriscoll@pwc.com
Liam Diamond Susan Kilty John O’Leary
+353 1 792 6579 +353 1 792 6740 +353 1 792 8659
liam.diamond@pwc.com susan.kilty@pwc.com john.oleary@pwc.com
Brian Leonard Ronan MacNioclais Feargal O’Rourke
+353 1 792 6179 +353 1 792 6006 +353 1 792 6480
brian.a.leonard@pwc.com ronan.macnioclais@pwc.com feargal.orourke@pwc.com
Denis Harrington Joe Tynan Garrett Cronin
+353 1 792 8629 +353 1 792 6399 +353 1 792 8807
denis.harrington@pwc.com joe.tynan@pwc.com garrett.cronin@pwc.com
Andy O’Callaghan James McNally
+353 1 792 6247 +353 1 792 6844
andy.ocallaghan@pwc.com james.o.mcnally@pwc.com
www.pwc.ie/fdi
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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