INVESTING IN IRELAND ISSUE 45, JANUARY 2021 - PWC IRELAND
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www.pwc.ie/fdi
Investing in Ireland
Issue 45, January 2021
Welcome to the January 2021 edition of PwC’s In addition, this issue also highlights some recent
newsletter on foreign direct investment (“FDI”) in podcasts released by PwC on current topical issues
Ireland. in the FDI space (see page 7). Ireland also maintains
its number one ranking in a number of key areas
Notwithstanding the challenging international (see page 8).
economic environment with Covid-19 and Brexit
uncertainty, a number of Irish jobs and investment Please do not hesitate to contact myself, any
announcements over the last few months reflect member of our team, or your usual PwC Ireland
continued confidence in Ireland (see page 2). contact at any stage. We would be happy to tell
you more about the topics raised in this issue or to
Ireland has become an attractive location for include any interested parties on our mailing list.
businesses operating in the digital sector. This issue
explains the main reasons for Ireland becoming
one of the leading digital economies, and a choice
location, for digitally enabled companies (see page 4). Remember to visit our FDI website for more
updates and detailed information
The issue also looks at investing in the regional Irish (http://www.pwc.ie/fdi), including a range
locations and how Ireland continues to promote of recent publications.
areas outside of Dublin to foreign investors (see
page 5).
Liam Diamond
+353 1 792 6579
+353 86 405 6965
liam.diamond@pwc.com
1
Recent FDI investment
announcements
CSC, a leading provider of specialised the creation of 170 remote jobs throughout
administration services to alternative asset Ireland. The company is recruiting in the areas of
managers has announced 75 new jobs with its medical information and pharmacovigilance with
plans to establish a European Centre of Operational a focus on delivering these services in support of
Excellence in Gorey, Co.Wexford. the commercial launch of vaccines indicated for
Covid-19.
Diligent Corporation, a software service company
providing integrated SaaS technologies to board Microsoft, a US multinational technology company,
directors to enable them to turn governance into a will add to its current 2,500 employees in Ireland
competitive advantage, has chosen Galway as its with the creation of 200 new engineering roles and
European Hub creating over 200 jobs in the areas of has also announced its plans to create a new €27m
customer support, customer success, finance, HR Engineering Hub in Leopardstown. The 200 new
and marketing. roles will support the development and deployment
of new Cloud services and emerging technology
Exida, a world leader in functional safety, industrial solutions for customers globally.
cyber security and alarm management has
announced that it has chosen Shannon as its Pfizer, one of Ireland’s largest pharmaceutical
European Centre of excellence. The announcement companies employing over 4,000 people currently,
will create 25 new jobs over the next 5 years. will create approximately 300 additional roles over
the next 2 to 3 years with a €300 million capital
IQVIA, a leading global provider of advanced investment in its Irish operations and manufacturing
analytics, technology solutions and clinical research sites in Grange Castle, Newbridge and Ringaskiddy.
services to the life sciences industry, announced
2
Qualcomm, a US multinational company that
creates intellectual property, semiconductors,
software and wireless technology services, will
create hundreds of highly skilled engineering
roles with its announcement to establish a new
R&D facility in Cork City. This is part of a four-
year investment and will add to Ireland’s strong
reputation in microelectronics R&D.
Retail InMotion, a leading global in-flight retail and
technology company announced plans to carry out “Pharmaceutical manufacturing in Ireland
a new R&D project to meet demands arising from continues to perform very well contributing
the Covid-19 pandemic. Retail InMotion’s Dublin strongly to exports and economic growth
office was chosen for this investment because of and provides excellent career opportunities.
its highly skilled engineering focused workforce, Pfizer has an extensive global and U.S.
which includes expertise in distributed systems footprint with operations in over 125 countries
design, mobile development, machine learning, test worldwide and we are very pleased with
automation, data science, network engineering, and today’s announcements which will strengthen
interface design. our Irish operations and bring our total
headcount in Ireland to 4,000.”
TikTok, the video-sharing social networking site Dr. Paul Duffy, Vice President of Pfizer
that established its EMEA Trust & Safety Hub in Global Supply
Dublin at the beginning of 2020 and has announced
plans to expand this further and increase its current
headcount in Ireland from 900 employees to 1,100 “Gorey, Wexford, is an ideal location to
by the end of January 2021. establish our European Centre of Operational
Excellence given its proximity to Dublin,
Takeda, a Japanese pharmaceutical company, has excellent infrastructure, and access to a deep
announced its plans to expand its production line talent pool that will support the growth of our
at its Bray facility. The company which has been fund and depositary services across Europe.”
established in Bray since 1997 currently employs
more than 340 employees at the Co.Wicklow facility John Hebert, President of Global Financial
in which it has invested €20m over the past two Markets at CSC
years.
Transact Campus Inc, a leading integrated
payment and credential software solutions company,
will create 100 new jobs in Limerick. The available
roles will be in the areas of product managers,
Architects, Scrum Masters, UX Designers, Front End
Developers, iOS and Android Developers.
Trilateral Research, a UK company specialising in
research, consultancy, and technology development,
has announced 40 new roles for its Irish office in
Belview Port, Co.Waterford over the next four years
in the areas of software development, data science,
data ethics and administrative support.
Unum, an American based insurance company, has
announced plans to expand its Technology Centre
of Excellence in Carlow. Unum has been based
in Carlow since 2008 and currently employs 150
people.
3
Digital Economy in Ireland
Over the past five years, Ireland has made
significant progress and is now the fastest growing
Why Ireland for Fintech?
digital economy within the EU according to The
Digital Economy and Society Index (DESI). DESI
monitors the performance of EU Member States • Young, highly educated & skilled workforce
in five areas: digital connectivity, human capital,
use of internet services, digital public services, • Internationally diverse talent with direct
and integration of digital technology. Under the access to the EU labour market
2020 DESI report, Ireland has ranked 1st for the
integration of digital technology and 6th overall out • Local expertise across Financial Services,
of 28 European countries for its Digital Economy. Technology, & Global Business Services
The Fintech sector, accelerated by the exponential
• English-speaking member of the Eurozone
growth of data centres in Ireland, has seen record
with full-access to the Single Market and EU
investment in 2020 and has doubled in transaction
regulatory passporting
size amid Ireland’s tech funding boom. This
thriving environment cements Ireland’s position as
a global centre for Financial Services, Technology • Fastest growing economy in the Eurozone
and Innovation. with one of the most productive workforces in
the world
Ireland has a sophisticated fintech and payments
ecosystem with a deep pool of local expertise • Corporate tax rate of 12.5% and a
available. Ireland offers a wide range of supports comprehensive network of double taxation
to promote innovative technology research, agreements
including a refundable 25% R&D tax credit, IDA
Ireland grants, a 6.25% preferential tax rate on • Refundable 25% R&D tax credit, access
profits arising from IP within the new Knowledge to 6.25% tax rate for qualifying Knowledge
Development Box, as well as the low statutory Development Box profits
tax rate of 12.5% applying generally to active
business profits.
• Regulator committed to delivering quality
financial authorisation and supervision.
Ireland offers companies access to a unique and
world class market to grow global businesses.
• The continued success of International
Financial Services is a priority for the
Government of Ireland. Working in partnership
with industry, there is a specific focus
on technology and innovation to provide
collaborative approaches to address the
emerging challenges and opportunities in the
sector.
4
Ireland’s Regions
Ireland’s regions are becoming increasingly popular Times collects data for this ranking from 505
as a location for FDI investment outside of the locations and ranks them according to 5 categories:
popular choices of Dublin, Galway and Cork. Economic Potential, Human Capital & Lifestyle,
Regional investment is on the rise and has risen Cost Effectiveness, Connectivity and Business
by over 50% in the last 5 years with more people Friendliness.
employed by regionally located FDI companies than
ever. The South East featured in the 2020/2021 edition
with its clear FDI strategy of economic potential
Out of the 132 investments won as of July 2020, 64 and a region for the future. The South East was also
of these (48%) were in regional locations. Ireland’s awarded 8th position in the category of regions with
regional strategy is paying off and delivering results a population under 1.5 million for its growth rates,
- 5,368 new jobs were created through FDI in the FDI flows and innovation.
regions in 2019.
Waterford ranked 8th in the Micro European cities of
Project 2040 is a major component of Ireland’s the Future category as well as 5th for its Economic
regional strategy. Project 2040 is a government long Potential and 7th for its FDI strategy.
term initiative to enhance infrastructure in Ireland.
A branch of this Project the “Urban Regeneration Galway was awarded the 1st place for FDI strategy
and Development Fund (“URDF”) will allocate €2 for micro cities for its attractiveness as one of the
billion in funding for the development of the regions top five global hubs in the medical technology
to further support the growth in FDI. This will enable sector as it is the location of choice for companies
the sustainable growth of our compact cities. such as Boston Scientific, Medtronic and Merit
Medical to establish locations here.
Another strategy aspect of Project 2040 is to
enhance the accessibility between key urban Not only is Project 2040 enhancing the
centres and the regions - this will ensure all regions attractiveness of the regions, it is being recognised
have a high degree of accessibility to Dublin. The internationally for the achievements to date, making
“Rural Regenerations and Development Fund” of €1 the regions a superb location for FDI.
billion has also been established as part of Project
2040 and will be invested in the rural renewal of
towns and villages in Ireland.
IDA Ireland, Ireland’s main agency
2020 has been a significant year for Ireland’s responsible for attracting FDI to Ireland, has
regional strategy that has led to the achievement recently issued tenders for an estimated
of numerous high profile awards. Every 2 years total €22m spend on two new properties to
the Financial Times publishes an FDI Magazine be built in Limerick and Waterford as part of
which ranks the European cities and Regions of their Regional Building Programme focussed
the future, of which Ireland’s regions made many on supporting new and existing FDI.
appearances in the 2020/2021 issue. The Financial
5
Publications
and podcasts
Think beyond webcast series: The future of work
In the workplace, the disruption caused by COVID-19,
technological advances and changing employee
expectations are sources of both concern and
opportunity for businesses and their people. In this
episode of our Think beyond webcasts, our People
and Organisation consulting partner Ger McDonough
is joined by three expert guests to share their practical
insights into what the future of work could look like.
See more here
PwC webcast discusses opportunities for Ireland
as global centre for Asset Management and Fintech
The PwC-hosted webcast “Ireland as a leading global
asset management centre” provided some essential
insights into repositioning the industry for a post-Brexit
world and what this may mean for Ireland as a leading
global asset management centre.
See more here
DAC 6 and the alternative funds landscape - are
you prepared?
As the first deferred reporting deadline for the newly-
introduced DAC 6 EU Mandatory Disclosure regime
looms, asset managers need to ensure they are ready
to comply with the new rules.
See more here
6Leading the way
Economic
Updates 1 in Europe for:
st
• 63% of Irish business reported they are • Paying business taxes1
trading at normal capacity during Covid • E-commerce and the integration of digital
• Ireland has secured almost 25% of technologies2
Brexit relocations to date • ICT as a percentage of GDP and ICT labour
• Real GDP increase of 11.1% in Q3 productivity2
2020 • Galway voted friendliest city in Europe3
• The impact of Covid-19 on GDP is • EU region of the future (Dublin)4
less than previously expected, mainly
due to the resilience of Multinational
Company (MNC) dominated exports
1 in the Eurozone for:
st
• The economy is projected to recover in
2021 and expand at over 4% in 2022
• Ireland achieved a positive brand value • Business Friendliness (Cork City)4
growth of 11% in 2020
• FDI Strategy (Cork City)4
1 PwC/World Bank Group “Paying Taxes” Report 2020
2 The Digital Economy and Society Index 2020
3 Condé Nast Traveller Reader Travel Awards 2020
4 Global Cities of the Future 2020/21 – FDI Intelligence
7Would 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 for additional
information. Various topics of interest for foreign
investors can be found in the publications link in
the tax section, including:
Budget 2021
Brexit
CEO Survey
Previous issue of Investing in Ireland
Tax Facts 2020
8Contacts
Jean Delaney Mary Honohan James McNally
+353 1 792 6280 +353 1 792 8609 +353 1 792 6844
jean.delaney@pwc.com mary.honohan@pwc.com james.o.mcnally@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
+353 1 792 6247
andy.ocallaghan@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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