Brexit could help make Ireland a ‘springboard to Europe’ for tech companies

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  • A new report from KPMG has suggested that Ireland's technology sector could significantly benefit from the Brexit process, thanks to the country’s wealth of tech talent, its favourable tax regime and the fact English is Ireland’s first language. 

    Since the UK voted to leave the European Union many multinational companies and fintech startups in London (and other parts of the UK, for that matter) have considered setting up subsidiaries in other EU countries in order to guarantee their access to, and passporting rights throughout, the huge EU single market. 

    Unsurprisingly, countries across the European Union have been scrambling to attract these businesses to set up shop in their own cities, since the job creation and tax revenues the subsidiaries would generate would be hugely beneficial to the chosen country. 

    Anna Scally, Partner at KPMG in Ireland, believes Dublin could win a growing number of these battles, particularly in the fintech sector, helping to position Ireland as a ‘springboard to Europe’ for tech companies: “Dublin is increasingly being chosen as the European headquarters for multinational companies and growing firms, such as Kabbage. Other companies, especially in Ireland’s strong fintech market, increased operations and added headcount throughout the first quarter.

    “Brexit is certainly a factor in this trend and is well-positioned to serve as a springboard to the vast European market. Ireland’s straightforward tax regime and strong tech talent base are also motivators.”

    Gerry Cross, Director of Policy & Risk at the Central Bank of Ireland, reinforced KPMG’s assertion, indicating that the Irish central bank has seen “significant levels of interest from UK firms considering re-locating their European business to Ireland.”

    In fact, just this week JP Morgan signed a major deal to acquire a new office building in Dublin for €125 million, which will give the financial services company the capacity to create as many as 500  new jobs in Ireland’s capital.

    Beyond the more traditional financial services firms like JP Morgan, Ireland is also "gaining prominence internationally" as a fintech hub, according to KPMG, with Dublin increasingly seen "as an alternative to London” for fintech startups. 

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