The costs of setting up and maintaining companies in Ireland have improved in recent years helping Irish firms to become more competitive internationally, and also to make Ireland a more attractive location for overseas firms to base their operations. Whilst Ireland can be a relatively high cost location for some business inputs the other benefits that Ireland offers to businesses including a skilled workforce, low corporate tax regime and supports for business go a long way to offsetting this.
One of the key benefits of setting up a business in Ireland is the relatively low cost of incorporation and tax registration and the ease of setting up a business. In its 2014 Doing Business Report the World Bank Group ranked Ireland 15th in terms of ease of doing business and in 2013 Forbes ranked Ireland as the best country in the world for business.
And Ireland continues to improve. The National Competitiveness Council (NCC) Cost of Doing Business in Ireland 2014 report released in April 2014 looked in-depth at Ireland’s business costs trends which are summarised here:
Labour Costs: Gross earnings are the 8th highest in the euro area and net wages are the 6th highest but in 2013 Irish labour costs increased more slowly than the euro area average.
Property Costs: For a number of years the commercial property market experienced significant cost reductions but has now begun to stabilise with rents increasing as a result of more companies (both foreign and national) competing for prime commercial office space. Rents will be higher in Dublin whilst rental levels in the regions outside the capital will be more competitively priced due to the availability of surplus properties.
Transport Costs: Diesel prices are roughly 7 per cent more expensive in Ireland than in the euro area. While it may be more expensive to export from Ireland, Irish administrative processes are highly efficient and compare very favourably with processes in competitor markets.
Utility Costs: Utility costs in Ireland are relatively high, and Telecom costs are relatively low, and in all sectors pressure on prices is being increased through competition.
Business Services and Other Input Costs: Throughout 2012 and 2013, prices for a range of business services (e.g. transport, postal and courier, and computer consultancy services) following a period of decline have gradually been increasing from a low base as the country emerges from recession.
Whether you’re an Irish or overseas business contact us for help and advice in setting up your company in Ireland and advising you on the potential costs for your business in Ireland.