Due to Brexit more and more businesses in the UK are exposed to uncertainty as the UK has left the European Union. Britain is now a third country and has to follow new rules and regulations in order to trade with the EU bloc.
London's global influence is diminishing due to Brexit and Businesses are choosing other EU financial centers over the city of London.
The Financial services Brexit tracker has found that 43% of firms had stated in the statement that they are planning or have already moved staff and operations to mainland Europe after Brexit.
According to the Financial Think Tank, Dublin emerged as the biggest winner due to the relocation of financial firms moving out of the UK as a result of Brexit.
The City of Dublin received 135 relocations followed by Paris 102, Luxembourg 95, Frankfurt 63, and Amsterdam 48.
The number is growing and more firms are relocating as per the study of Financial Think Tank as the Brexit trade deal agreed between the EU and the UK did not cover the financial sector.
Banks in the UK have already moved staff and assets worth £900 to other European centers. Insurers and Managers have been transferred assets worth £100bn to reduce the UK tax base.
Moreover, more than half of wealth and asset managers named Dublin as their center followed by 42% Luxembourg. 37% of insurers and insurance brokers monitored the name Dublin.
Below are some of the reasons why UK Businesses are Moving to Ireland.
Financial passporting after Brexit: When the UK was in the EU, It could trade freely with the EU bloc. Financial advisors could move freely to the UK and the EU without any hassle. Due to Brexit, passporting between the EU and the UK came to an end, as a result, This has prompted the senior staff to relocate to Ireland, Dublin.
The City of Dublin is a gateway to the international market: In 2013, Forbes rated Dublin as the best country in the EU to do business. Multinational giants like Facebook, Apple, Google, Twitter, and Amazon have set up bases there. The city has a great transport system and connection to European Unions as well as countries outside the bloc.
Very low rate of tax for corporate The city is moreover attracting businesses as the corporate tax is 12.5% which gives it an advantage over other cities in the EU.
English Speaking Country and access to EU contracts: As Ireland is an English Speaking country, This helps UK businesses to do business in the EU as well as the UK. It allows businesses to hire great talent as Ireland has a quality workforce. As English is the first language, Ireland's central statistics office shows that half a million of people in Ireland speak the second language fluently as this makes Businesses win European contacts easily.
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