Ireland became rich through a strategic shift to attract multinational corporations with low corporate taxes (12.5%), EU membership providing market access, significant investment in education, and a pro-business environment, especially during the "Celtic Tiger" boom (1995-2007). This led to massive foreign direct investment (FDI), particularly in tech and pharma, transforming it from one of Europe's poorest nations into a wealthy, globalized economy, though this growth also brought challenges like housing affordability.
This growth was driven by favorable tax policies, foreign investment, a skilled workforce, EU membership, and globalization efforts. The boom resulted in Ireland transitioning from one of Europe's poorest countries to one of its wealthiest.
The 1990s, however saw the beginning of unprecedented economic success, in a phenomenon known as the "Celtic Tiger", which continued until the 2008 financial crisis, specifically the post-2008 Irish economic downturn. It also led to Ireland becoming the most indebted state in the European Union.
Trade and economy
Ireland ranks second in the European Union in terms of GDP per capita with €81 200, well above the EU average (€38 100). It accounts for 3% of the EU's total GDP.
Government expenditure is funded from the Exchequer. Government receives money from a number of sources: Tax revenue is paid by people and businesses. Non-Tax revenue comes from a number of sources including income from the Central Bank of Ireland, dividends from shares owned by Government and the National Lottery.
For most people, a household salary of €100,000 would put a family in the category of “rich”. And if you earned that last year, you were among the top 6.6pc of employees, Revenue figures show. The average gross pay for a PAYE worker nationwide was €42,100 in 2024, while the Dublin average was €49,500.
Ireland is referred to as a tax haven because of the country's taxation and economic policies. The country's tax laws heavily favor businesses, and the economic environment is very hospitable for all corporations, especially those invested in research, development, and innovation.
In a non-European Union context, the term E3 is commonly used to describe the three largest western European economies: France, Germany, and the United Kingdom.
The richest country by GDP (PPP) per capita is often cited as Singapore, followed closely by Luxembourg, depending on the specific report and year, with Singapore leading in 2025 estimates with around $156,000-$157,000 per person, while Luxembourg is a strong contender just below that, highlighting small, finance-heavy economies as wealthiest per person.
Ireland's Top 10 Exports
Housing was seen as the most important issue facing the Republic of Ireland as of 2025, with 64 percent of respondents placing it as one of the top two issues facing the country.
There is a limit to how far back you can claim tax refunds under Pay As You Earn (PAYE) and Self-assessment. The limit is four years, meaning you can only request reviews or claim refunds for the last four years. For example, claims for 2021 must be made by 31 December 2025.
Hostility increased towards the Irish over the centuries, as they steadfastly remained Roman Catholic despite the fact that Edward VI and subsequent rulers used coercion to convert them to Protestantism. The religious majority of the Irish nation was ruled by a religious minority, leading to perennial social conflict.
In 2023, agriculture contributed around 0.88 percent to the GDP of Ireland, 33.19 percent came from the industry and 60.88 percent from the service sector.
Food, Chemical, and Pharmaceuticals accounted for 74% of all production in Ireland in 2021. These three sectors had an aggregate Net Selling Value (NSV) of €98.3 billion, while the remaining sectors reported a value of €34.8 billion. The total value of products manufactured in Ireland in 2021 was €133.2 billion.
The average annual earnings for employees in Ireland is €44,202 per year or €3,683 per month (gross salary).
Australia currently stands as the second-wealthiest country in the world, with a median wealth per adult of US$268,000 (AU$413,000). In other words, half the population has more than this amount and half has less.
By 2050, China is projected to be the world's richest country by total GDP, leading a significant shift where emerging economies like India, Indonesia, Brazil, and Russia rise to challenge traditional giants, with the U.S. potentially falling to third, while Singapore might become the richest per capita (PPP), though these predictions depend heavily on technological progress, political stability, and growth rates.
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However, after a Swiss referendum held on 6 December 1992 rejected EEA membership by 50.3% to 49.7%, the Swiss government decided to suspend negotiations for EU membership until further notice. These did not resume and in 2016, Switzerland formally withdrew its application for EU membership.
Don't blink as we blitz through Europe's tiniest countries: Vatican City, the planet's smallest country, boasts the its biggest church.
The European Group of Five (E5) in the European Union is an unofficial group of five European states —France, Germany, Italy, Poland, and Spain with the largest populations and thus with the majority of votes in the Council of the European Union.
A 'good' salary in Ireland generally ranges from €50,000 to €70,000 per year. This would allow a single person or small family to live comfortably, especially outside of Dublin.
The Double Irish arrangement was a base erosion and profit shifting (BEPS) corporate tax avoidance tool used mainly by United States multinationals since the late 1980s to avoid corporate taxation on non-US profits.
The headline rates of Income Tax – 20% and 40% - are the same in both jurisdictions, although the UK does have a 45% rate for incomes above Stg£150,000.