Ireland’s Global Fund Leadership

Ireland is the third-largest fund domicile, serving every major economy in the world, having strong links with US asset managers, a substantial UK client base, and Irish funds distributed across 90 countries. A global leader in fund administration with €5.6 trillion AuA, in 13,677 funds supported by 1,053 fund managers from 54 countries. The country’s comprehensive ecosystem of fund managers, fund service providers, legal, audit, advisory, and other professional experts collectively employs 20,000 people in the fund and asset management sector.

Fund Categories and Specialisations

Ireland’s main fund categories are the traditional retail investments called UCITS (Undertakings for the Collective Investment in Transferable Securities), which adhere to the EU’s UCITS framework, and the AIFs (Alternative Investment Funds), supervised by the Central Bank of Ireland and authorised under several Irish domestic laws. With 40% of the global hedge fund administration market, Ireland is also Europe's top domicile for exchange-traded funds (ETFs), managing over €1 trillion in assets under management (AUM) and a preferred choice for Money Market Funds (MMFs) and UCITS.

Tax Advantages for Investors

The open and transparent tax structure, tax treaties with over 75 countries, and a 12.5% corporate tax rate make Ireland a favourable choice for investors and fund managers. The Irish-regulated funds are exempt from taxes on income and gains, and no tax is levied on their net asset value. Additionally, for non-Irish resident investors, there are no net asset, transfer, or capital taxes on the issuance, transfer, or redemption of units. Except for certain funds holding Irish real estate or related assets, non-Irish investors are not subject to Irish taxes on their investments and do not face withholding taxes on fund payments. Under EU law, management, administration, and custody services provided to Irish-regulated funds are exempt from Irish VAT.

Strategic EU Position

As a trusted EU member, Ireland offers full access to European markets, supported by an English-speaking base and services in over 30 languages with operations in 28 currencies. The Central Bank of Ireland ensures strong regulatory oversight, compliance, and consumer protection. Its global reach is reinforced by over 40 Memoranda of Understanding with key countries, including the US, Switzerland, Japan, and China, solidifying its position as a strategic hub for business and innovation. Home to global leaders in healthcare, IT, financial services, industrial automation, and biotech, Ireland boasts a skilled workforce and advanced infrastructure.

Industry Shifts and Trends

Between 2019 and 2022, the industry saw a notable transition from self-managed models to third-party management firms for specialised professional services. By 2022, these third-party firms were managing approximately €540 billion in AUM.

A recent survey by KPMG indicated that nearly 90% of respondents reported process automation as having the most significant impact on their business operations. Ireland has taken center stage with its focus on automation and streamlining the entire fund lifecycle by deploying technological solutions for automating fund management and setting a global benchmark.

How can we help?

Formidium is highly equipped with advanced in-house technology that helps you automate every aspect of the fund administration cycle, from digital investor onboarding to handling back-office operations, ensuring seamless and efficient service delivery.

To know more, please contact us