Nation’s investment in Ireland skyrockets 30% in 2016, drawn partly by low taxes

Chinese investment into Ireland surged around 30 percent to $ 2.9 billion in 2016, amid global uncertainties and sluggish growth, an official from Ireland’s investment agency said on Thursday.

Ireland is expected to attract more Chinese investment with tax, language and geographical advantages, the official said.

Ireland became China’s fifth- largest investment destination in 2016, with investment reaching $ 2.9 billion from just $ 10 million a year earlier, Zhang Zhewei, director of the Ireland Investment and Development Agency in China, said in a press conference in Beijing.

The big rise mainly reflected HNA Group’s purchase of Irish aircraft leasing company Avolon for $ 2.5 billion, according to a press release the agency sent to the Global Times on Thursday. After the deal finished in early 2016, Avolon became part of HNA’s extensive interests in the aviation sector, spanning stakes in 20 airlines and nine airports in China.

Ireland’s energy sector also boosted, with a $ 400 million investment from China General Nuclear Power’s European energy arm into 14 Irish wind farms owned by Gaelectric.

Chinese investors mainly focused on Germany and the UK in Europe, the press release noted. Germany saw inbound deals from China rise nearly tenfold to $ 12.1 billion last year. The UK attracted $ 9 billion, soaring 130 percent.

Zhang told the Global Times on Thursday that Ireland is expected to attract more Chinese investors, as the country offers advantages such as talented staff proficient in many lan- guages, a low tax rate and proximity to other European countries such as the UK, Germany and France. The corporate income tax is 12.5 percent, compared with 25 percent in China.

“Chinese companies may want to establish a service center in Ireland as they expand into the UK,” he said.