Inside the Drivers of Growth
Ireland is Europe’s de factor ETF domicile of choice, hosting some 70% of European ETFs4 (vs. 21% in Luxembourg5) and 78% of European ETF AUM.6
While passive ETFs still constitute more than 96% of Irish-domiciled ETF AUM,7 active ETFs are a key growth engine: Ireland domiciles 85% of Europe’s active ETF structures and 96% of active ETF AUM, along with capturing 94% of 2025 net flows as of Nov 21, 2025.8
Ireland’s appeal is reinforced by tax and regulatory advantages (including broad double-tax treaties and a 15% U.S. dividend withholding rate for qualifying Irish ETFs), no subscription tax, a 12.5% corporate tax rate (vs. 25% in Luxembourg), and flexible structures that support more complex strategies (including full collateralized loan obligation exposure9 and, since April 2025, semi-transparent ETFs with quarterly holdings disclosure10).
A 2025 CBI clarification also highlighted the regulatory approach to the creation of listed ETF share classes within mutual funds (without the UCITS ETF label at sub-fund level),11 creating additional market entry points—though uptake has been limited and can have U.S. equity tax considerations. Recent U.S. filings for private credit/private equity ETFs signal growing demand for innovative wrappers, which could benefit Ireland if replicated in Europe.
