FT: Ireland overtakes Luxembourg in terms of assets of European exchange-traded investment funds

The share of Ireland in the volume of assets of European exchange-traded funds (ETF) reached 67% (939 billion euros), informed The Financial Times, citing the Morningstar rating agency.

The second place in terms of ETF assets was occupied by Luxembourg with a share of 20% (276 billion euros). The material notes that from the end of 2018 to the end of January 2023, Irish-managed assets grew by 159%, and Luxembourg assets by only 79%. Andrea Murray, head of business development at consulting firm Blackwater Search & Advisory, said the gap will widen.

In her opinion, this is due to the favorable tax climate for US ETFs – in Ireland the rate for them is only 15%, and in Luxembourg – 30%. In addition, Dublin is “becoming home” to ETF specialists, which can only increase the “dominance of Ireland”.

In mid-February, Irish Minister of Justice Simon Harris announced that the country would close the visa program for foreign investors. The minister said that the authorities of the republic made such a decision after a study by the European Commission, according to which Chinese citizens most often used the investment program.

According to Harris, the “golden visa” was able to attract more than 1.25 billion euros of investments into the country, but now the country’s authorities are forced to consider whether such a program is needed for its “use for economic, cultural and social purposes.” She ceased to operate on February 15.