The establishment of the International Financial Services Centre (IFSC) in Dublin in 1987 gave significant impetus to the development of structured finance activity in Ireland.
The initial drivers were the 10 percent rate of corporation tax, accelerated capital allowances and an expanding network of double tax treaties. These were accompanied by an additional body of tax legislation designed to facilitate financial services transactions. Although the 10 percent rate was phased out by 2005, a standard rate of corporation tax of 12½ percent was introduced on 1 January 2003, thus helping to ensure the continuation of this business.
Ireland is now home to a large number of international banks, brokers and boutique service providers with substantial structured finance units.
Ireland, in particular, is a global player in the leasing of aircraft and other big ticket assets and is developing a growing reputation as a centre for securitisation transactions.