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5 reasons to choose Ireland for your SPV needs

5 reasons to choose Ireland for your SPV needs

06 June, 2024
Dublin Capital Markets SPV Administration SPV Accounting, Reporting & Tax

As financial services and technology converge, Ireland is a strategic hub for industry collaboration and innovation.


Why is Ireland growing in popularity for financial transactions?

It’s estimated there are over 4,000 SPVs in Ireland, holding in excess of €1.1 trillion in assets, and the number is growing. While SPVs are established in Ireland for a range of purposes, the country has become the European hub for SPVs that hold collateralised loan obligations (CLOs). These are collateralised corporate loans issued as debt to investors. In 2023, SPVs for aircraft leasing vehicles grew by 22%, for CLOs by 21% and for credit funds by 12%. US and UK sponsors are responsible for nearly twothirds of Irish-domiciled SPV.


What are the key reasons to consider Ireland for your SPV?

1. Well-placed connections

Ireland is a highly regarded centre for international finance, with a legal framework based on common law and well-established rules around the creation and maintenance of SPVs. Its membership of the EU and OECD give security, certainty and reassurance to investors, making it a key location for debt-issuing SPVs.

2. Taxation

Ireland has an extensive network of double-taxation agreements and offers special tax treatment for qualifying SPVs. If the SPV qualifies as a Section 110 company, it may be structured to be tax neutral.

3. Skilled professional base

As a major financial centre, Ireland has a well-developed infrastructure of specialist service providers. This includes directors, advisors, listing agents and trustees. There is a wide network of legal and tax specialists, and a thriving ecosystem of entity administrators.

4. Structure flexibility

Irish SPVs are incorporated as either private companies limited by shares, public limited liability companies or designated activity companies (DACs). Most are DACs, which are especially popular for securitisation and structured-finance transactions. DACs can be established to meet Section 110 requirements.

5. Ease of incorporation

Incorporating an SPV in Ireland is fast and efficient. It is commonly completed in three to five working days and relevant documents can be submitted online. The costs of incorporation are relatively low.


How can Ocorian support SPVs in Ireland?

Most companies and funds use a third-party corporate services provider to help establish and manage their SPVs. Outsourcing the administration reduces the burden on employees whilst ensuring all compliance, legal and reporting obligations are taken care of and valuable time given back.

Ocorian has a strong presence in Ireland and decades of experience with a wide range of industries and requests. We combine industry experience with international and local knowledge, a network of contacts and, essentially, boots on the ground. Ocorian makes SPVs easier to set up, manage and dissolve and be with you every step throughout the lifecycle.

“There’s complexity around the wider obligations of these vehicles that companies have to be aware of as regulations evolve, so on-the-ground expertise is essential,” says Padraic Doherty, Managing Director of Ocorian’s Ireland office. “The plus side in Ireland is that industry bodies – the Irish Debt Securities Association is one – work closely with the government and are very proactive in flagging up issues and helping the industry find ways to deal with them.” 


How can I find out more information?

Contact Padraic and the team to get the advice you need and download our useful juristational SPV guide below.