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Why Is Ireland So Rich? (Explained)

Why Is Ireland So Rich? (Explained)

When it’s time to consider living in a place like Ireland, it’s important to dissect what it’s all about. This includes understanding the intricate nature of Ireland as a country, its rich history, and how it has come to its current state as a nation.

As of right now, Ireland is seen as one of the richer countries (via GDP) on the planet.

This might surprise people when they take the time to assess Ireland as a country. What allows it to withstand economic pressures and continue to do well?

There are numerous factors at play and each one is important.

Ireland has made changes over the years to its policies and that has allowed it to flourish. This article is going to take the time to showcase why Ireland is rich.

Reasons Ireland Is Rich

Foreign Investments

One of the biggest changes made by Ireland had to do with foreign investments.

Companies started realizing the potential of dropping money into Ireland because it was welcoming to corporations and willing to provide regulatory leeway to make things easier for them tax-wise.

This has led to a significant amount of investments coming to Ireland over the past few decades.

Some of the world’s biggest companies knew this was advantageous and took to the time to plan a way to move to Ireland. This had to do with the tax schemes during those earlier years.

Is it the same now?

There have been changes as time has gone on including the tax rate going up to 15%.

Why did Ireland begin to raise the corporate tax rate?

It had to do with making adjustments as the corporations settled in. Ireland knows these organizations are not going to pick up and leave as easily as they would have in the past. This includes the amount of money that has been pumped into the economy.

This is what allows Ireland to remain rich.

The wealth in Ireland has a lot to do with the billions that have been poured into the nation by these major companies from around the world. It has allowed more funds to come to Ireland as time has gone on even as the tax rate has risen.

Low Tax Rates

It’s important to dig deeper into the tax rates in Ireland.

When you look at the quality of life in Ireland, you will realize the tax rate has to do with this. People are leading healthier lives and are getting more out of the system without impacting their quality of life.

This has a lot to do with the stabilization of the economy as time has gone on.

There was a time when these tax rates were not favorable and companies stayed away.

However, with the turn of the century, Ireland started making adjustments including dropping the corporate tax rate substantially.

Agreeable Politics

This is often an underestimated influencer when it comes to wealth in a nation.

Politics will always play a role.

Ireland is a wealthy nation because of its political setup. The economic decisions that have been made over the years have been focused on building agreeable politics and that’s what allowed them to shine.

Agreeable politics are critical in making sure the tax rate is stable and organizations want to pump money into a nation. When things are unstable, it is a lot more difficult for companies to want to jump in and they look to stay away as much as possible.

This has helped Ireland do well in this regard.

EU Membership

EU membership has also made it easier for Ireland to do well.

Ireland has managed to create a setup where it’s easy for the transfer of money to be managed between organizations.

It is not as difficult for travel, imports, exports, and anything else between the EU members. This has allowed the nations to flourish and that includes Ireland.

When assessing the best nations to reside in, it’s common for EU members to find a spot including Ireland. It is the role of this membership that amplifies things for the Irish.

Airline Control

This is one element you are going to be surprised to hear about.

Airline supremacy is a real thing in Ireland.

Some of the biggest aircraft companies reside in Ireland. They supply aircraft to the leading airlines, which means they rely on Ireland to continue pumping out these aircraft.

As of right now, almost 25% of the aircraft are from Ireland.

Final Thoughts

These are the reasons Ireland is rich as a country.

Ireland is a wealthy country due to its low corporate tax rate, well-established business infrastructure, and aircraft supremacy. It’s one of the leading nations in terms of quality of life, which only adds to its attractiveness to foreign investors.

Ireland continues to develop as a nation and stands out for those who want to move here.