Ireland Climbs into Top 10 Global Tax Haven Rankings, Reports Reuters

By John O’Donnell

DUBLIN – According to a ranking by the Tax Justice Network, a pressure group advocating for tax transparency, Ireland has surpassed the Bahamas to become the world’s ninth most significant tax haven.

This marks Ireland’s first appearance in the global top ten, placing it alongside prominent locations like the British Virgin Islands, which holds the top spot, and the Netherlands. Ireland has moved up from eleventh place in the previous report released in 2021.

The study evaluates countries based on corporate financial activity, including money flows, transparency, and available tax schemes, using a points-based ranking system.

While the Tax Justice Network is critical of Britain’s overseas territories, such as the Virgin Islands, it also underscores the increasing relevance of Ireland in this context.

The publication of this ranking followed Ireland’s receipt of $14 billion in back taxes from Apple, after a ruling from the European Court of Justice deemed the country’s favorable tax treatment of the tech giant unlawful.

A spokesperson for Ireland’s Department of Finance stated that Ireland does not consider itself a tax haven and has undertaken measures to combat aggressive tax planning by reforming its tax code. The spokesperson emphasized the country’s support for international tax reform.

Nessa Ni Chasaide from Maynooth University remarked that Dublin has responded to criticism not by eliminating advantageous tax schemes, but by modifying them. For instance, it allows international companies to write off the value of intellectual property against profits to reduce their tax burden.

“Ireland plays global tax games in a very sophisticated way,” she explained. “Every time it comes under pressure, it introduces a new strategy. Ireland is enjoying significant financial benefits.”

In the past decade, corporate tax revenues in Ireland have surged, rising from 4.4 billion euros in 2015 to an expected 29.5 billion euros this year—excluding the Apple windfall.

The revenue, primarily sourced from a select group of U.S. multinationals, now accounts for 28% of total tax collected in Ireland annually, contributing to the strengthening of its public finances, which have become the most robust in Europe.