Ireland’s state investment agency secured 190 new projects in the first half of 2026, including 54 from first-time investors, expected to create 10,400 jobs. The deals cover sectors from semiconductors to pharmaceuticals, reinforcing the country’s appeal to multinationals.
Big names, bigger commitments
Intel will spend €5 billion expanding its Leixlip campus to increase processor production. Novo Nordisk, the Danish drugmaker, is investing €430 million to grow its Athlone manufacturing site. Qualcomm plans a €125 million upgrade at its Cork facility, while OpenText will invest €105 million in a new AI-focused operation, adding 400 roles.
Multinationals continue to favor Ireland, and the government keeps offering incentives to maintain that interest.
Tax windfall fuels spending spree
Corporation tax receipts reached €33 billion in 2025, matching the combined total from 2019 to 2021. The country now collects nearly three times more corporation tax relative to its economy than other European nations. Rather than saving most of it, the government plans to spend five out of every six euros collected from businesses by 2030.
Gross voted expenditure hit €54.4 billion by June, a 6.9% year-on-year increase. Spending growth exceeded tax revenue growth, which rose 4.8% in the same period. The Summer Economic Statement forecasts another 5.9% rise in 2027, though departments often exceed their budgets.
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The Irish Fiscal Advisory Council cautions that this spending accelerates when the economy is already strong. Finance Minister Simon Harris’s plan calls for the fastest spending growth in the EU, with net spending expected to climb 7.1% annually through 2030. By then, it could be 50% higher than in 2024.
For construction, retail, and hospitality, the surge offers benefits. Income tax revenues rose 6.7% in the first half of the year, while VAT receipts increased 7.5%.
The state provides grants—€167 million last year—to attract multinationals, which then generate more corporation tax. Ministers spend most of that revenue before it’s collected, funding projects that further stimulate the economy.
AI investments hint at long-term bet
The IDA’s latest figures show a shift toward AI-driven projects. Intel’s Xeon 6 expansion, OpenText’s sovereign cloud push, and Qualcomm’s AI pillar in Cork suggest Ireland is becoming a hub for advanced tech. The arrival of firms like Anthropic supports this direction.
Success depends on the AI sector’s stability. For now, spending continues, and corporation tax flows in faster than ministers can allocate it. Unless a major economic shock or AI investment collapse occurs, the pattern will likely persist through next year.
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