Invest in Ireland: Foreign Direct Investment Hits Record Levels in 2025
For businesses looking to invest in Ireland, 2025 marks a turning point. The country recorded a 38% surge in foreign direct investment (FDI), with 323 new project announcements — a historic high that underscores the structural strength of Ireland’s international investment model.
Why Invest in Ireland: An Ecosystem Built for International Capital
Ireland’s success in attracting FDI extends well beyond its favourable corporate tax regime. Behind the record figures of 2025 lies a decades-long effort to build a genuinely competitive investment environment: political stability, sustained investment in education and research, a young and internationally diverse workforce, and privileged access to the EU Single Market of 450 million consumers. Ireland’s investment promotion policy enjoys cross-party political support, providing the consistency and predictability that international businesses require when making long-term location decisions.
Employment in foreign-owned firms backed by IDA Ireland — the government’s investment promotion agency, established in 1949 — reached 312,400 in 2025, a 1.5% increase on the previous year and another record high. Notably, 57% of investments were located in regional areas outside Dublin, demonstrating the country’s growing ability to distribute economic benefits across the national territory.
IDA Ireland: Strategy and Incentives
IDA Ireland operates with an annual budget of €175 million and has planned client expenditure of €250 billion over the lifetime of its current strategy. Its 2025–2029 plan, Adapt Intelligently: A Strategy for Sustainable Growth and Innovation, sets out four strategic objectives: strengthening long-term investment, scaling cutting-edge innovation, driving sustainable change, and maximising regional opportunities. Priority sectors include artificial intelligence and digitalisation, semiconductors, health, and sustainability — areas in which technology-oriented Italian SMEs may find significant positioning opportunities.
Companies exploring Ireland as a location — from early-stage startups to established multinationals — can access a comprehensive range of supports, including R&D investment grants, tax credits, and employment and training grants. These measures materially reduce financial risk during the establishment phase and accelerate the path to full operational capacity. More details are available on the IDA Ireland website.
Corporate Tax: Stability and Competitiveness
From 2024, Ireland raised the minimum corporate tax rate to 15% for multinational companies with annual turnover exceeding €750 million, in line with international obligations under the OECD Pillar Two agreement. However, more than 99% of companies operating in Ireland fall outside the scope of this threshold and remain taxed at 12.5% — significantly below the standard rates in the United Kingdom (25%) and Germany (approximately 30%). For Italian SMEs, this differential represents a material structural advantage in international tax planning.
Human Capital and Innovation
In 2025, 62% of Irish adults aged 25 to 34 held a tertiary-level qualification — one of the highest rates in the OECD. Ireland also leads the European Union in STEM graduates relative to population, recording 39.5 per 1,000 inhabitants aged 20 to 29. Furthermore, 26% of the workforce is non-Irish, reflecting a genuinely open and international labour market. On the research and innovation front, IDA Ireland supported 80 RD&I investments in 2025, representing €2.5 billion in client expenditure.
Infrastructure Pressures and Regional Development
The pace of investment growth has placed pressure on key infrastructure. Data centres currently consume 48% of Dublin’s electricity supply and 20% of nationally metered electricity. The Irish government is addressing these challenges through long-term investment frameworks — including Project Ireland 2040 and the National Development Plan 2021–2030 — aimed at expanding grid capacity, water supply, transport connectivity, and housing provision. Meanwhile, specialised regional hubs are taking shape: Dublin for technology, finance, and global services; Cork for life sciences, pharmaceuticals, and cybersecurity; and Galway for med-tech and digital innovation.
The Right Moment to Invest in Ireland
For Italian businesses seeking a European base for international expansion, Ireland offers a compelling and well-established proposition. The combination of a stable regulatory framework, competitive tax incentives, a highly skilled workforce, and direct access to the EU Single Market is difficult to match elsewhere in Europe. According to the latest MFAT market report, the conditions have never been more favourable for companies ready to invest in Ireland with a clear long-term vision.
The Kelmer team in Dublin supports Italian SMEs at every stage of their Irish establishment journey: from company formation and tax structuring to accounting, legal compliance, and ongoing regulatory support. Contact us today for a tailored consultation and find out how Kelmer can help you invest in Ireland with confidence.