PERHAPS better known for its Guinness than its financial expertise, Dublin is fast establishing itself as a major centre for offshore funds.
Ireland has all the prerequisites for attracting offshore funds: low taxation, a highly educated English-speaking workforce, and a full range of fund structures available.
But then again Luxembourg and Hongkong can boast of the same assets, so why Dublin? Ireland is a full member of both the European Community and the Organisation for Economic Co-operation and Development (OECD), providing access to European and Japanese markets, while offering administration and custody services at competitive costs, as well as a stock exchange listing.
Furthermore, in recent years the Irish Government has actively encouraged the financial services sector within the republic.
This has included the establishment of the International Financial Services Centre (IFSC), which offers the most tax efficient environment within the EC for the location of offshore funds and fund management operations.
Already many large corporations and institutions have set up offices in the IFSC including IBM, General Electric, Sumitomo Bank, Citicorp, Baring Brothers, Eagle Star and Credit Lyonnais. They are attracted by Ireland's comprehensive double taxation treaty network and 10 per cent rate of tax for specific types of activity including financial services out of Dublin and Shannon.
