Why is Google Headquartered in Ireland?
Dublin, Ireland, has been home to Google’s European headquarters for many years, offering an ideal mix of energy infrastructure, available land for development, and a skilled workforce, making it a prime location for data centres. Today, Google is synonymous with the internet, and it’s hard to imagine life without its services. People of all ages rely on Google products like Google Chrome, Google Search, Gmail, YouTube, and more. Over the years, Google has continually developed a wide range of online applications, empowering users to accomplish virtually anything.
Undoubtedly, Google is one of the most exciting and influential companies in the world today.
Google is a multinational American company that specialises in internet services and other products. These include email services, online advertising, social networking, and more. Google was set up in 1996 with the main goal to organise the worlds information. Googles European headquarter is in Dublin, Ireland. Ireland is known as the business hub. Not only has Google set up their business in Ireland, but other large companies such as Microsoft, Apple, Facebook, Yahoo, and Twitter.
There are so many reasons to choose Ireland and set up a business headquarters. Here are some of the main reasons Google set up their headquarters in Ireland.
Lowest Tax Rate
The corporate tax rate in Ireland is the lowest in Europe at 12.5%. In turn this helps Google earn more profit by paying small income tax. Irelands low corporate tax rate gives businesses a competitive edge in the global market. Companies can retain more profits, allowing for greater expansion, innovation, and reinvestment. Google run an exceptionally efficient tax management system. Google uses various strategies in ways to reduce their tax. Googles uses strategies known as double Irish with Dutch sandwich and double Irish agreement.
Double Irish with Dutch Sandwich
Google is introducing another strategy to further minimise its tax obligations, commonly referred to by tax professionals as the "Dutch Sandwich." This tax avoidance method employs a combination of Irish and Dutch subsidiary companies to transfer profits to jurisdictions with little or no tax. The process involves routing profits through an initial Irish company, then transferring them to a Dutch company, and finally to a second Irish company that is headquartered in a tax haven.
Double Irish Agreement
The Double Irish agreement is a tax strategy previously employed by some multinational corporations to reduce their corporate tax liabilities. It involved structuring payments between two related entities within the corporate framework to shift income from a jurisdiction with higher tax rates to one with lower tax rates.
Irish Weather
Ireland's climate is a key factor in Google's decision to establish its headquarters in Dublin. The country's cool, damp weather significantly contributes to reducing the company's energy costs. Globally, Google has lowered the energy used for cooling its data systems to just 12% of its total energy expenditure. Ireland's chilly climate enhances the energy efficiency of its data processing centres, making server cooling greener and more sustainable.
Location
Location is a significant factor in Google’s decision to establish its headquarters in Ireland. Renowned for its openness and global connectivity, Ireland stands out as one of the most internationally connected countries in the world. Dublin, in particular, is an appealing hub for a multinational workforce, serving as a strategic gateway to Europe, the United States, and the Middle East. Additionally, Ireland boasts strong connections to the US on personal, business, and political levels, further enhancing its appeal to global organisations.
Variety of Company Structures in Ireland
Ireland offers a diverse range of company structures, enabling businesses to choose the one that best aligns with their specific needs. These include limited companies, unlimited companies, and public limited companies. Additionally, the country provides the option of a designated activity company, a private company structure that is particularly favoured for international securitisations. Ireland is also commonly used by companies raising finance or listing debt, offering businesses the flexibility and variety they need when deciding on the most suitable company structure.
Young, Talented Multilingual workforce
One of the main factors driving companies to establish operations in Ireland is the country’s access to a highly educated, youthful, and English-speaking workforce. This workforce is renowned for its positive mindset, strong work ethic, and dedication to collaboration and excellence. Ireland boasts the youngest population in Europe, with 35% of its people under the age of 25. Coupled with a skilled local talent pool, this dynamic group—often referred to as the "new Irish"—ensures a continuous supply of highly qualified professionals with expertise in technical skills, adaptability, and customer service.
In addition, Dublin is renowned for its vibrant hospitality culture. It is considered one of the friendliest and most welcoming cities in the world, offering a high quality of life. The city benefits from a favourable regulatory environment, including research and development incentives, flexible intellectual property and tax policies, and access to government subsidies. These advantages have been key in attracting global giants like Google to establish their operations in Ireland.
Euro Zone
Ireland is a member of the EU. It falls under the euro zone, which is the most stable currency in the world.