Ireland Remains Attractive for FDI; 2 in 3 Investors Plan Expansion by 2026
Ireland remains a strong destination for international investment, with 67% of investors planning to expand by 2026, significantly above the European average. R&D is a key focus, driven by tax credits, though infrastructure challenges persist. Northern Ireland also saw a 65% rise in FDI projects in 2025.
Ireland continues to attract international investment, with two-thirds of investors intending to establish or expand operations in the country by 2026, according to EY Ireland’s Attractiveness survey. This compares favorably to the European average of 54 per cent. The survey assessed 150 international foreign direct investment (FDI) decision-makers across various sectors, including chemicals, financial services, and high-tech.
A third of planned investments in Ireland are focused on research and development (R&D). R&D projects accounted for a quarter of all FDI into Ireland in 2025, up from 12 per cent in 2022, despite a 30 per cent decline in R&D projects across Europe last year. Half of the surveyed investors cited Ireland’s R&D tax credit, recently increased to 35 per cent, as a key factor. Tánaiste Simon Harris also hinted at further R&D tax credit increases for subcontractors.
Other reasons for investor confidence include access to EU markets and competitive tax policy. Nearly two-thirds of investors expect Ireland’s attractiveness to improve over the next three years, a slight increase from 61 per cent last year. However, infrastructure was identified as a significant challenge, with a third of investors naming it the biggest risk to future attractiveness. Over 40 per cent prioritize investment in transport, energy, water, and housing. Northern Ireland also saw a 65 per cent increase in FDI projects, from 17 in 2024 to 28 in 2025.