Logical choise for new financial centre of Europe - Dublin?

Dublin may become a next big financial center in Europe as London exits the E.U.

Dublin may become a next big financial center in Europe as London exits the E.U.
London's position as one of the world's premiere financial centers is bound to change in the wake of a vote to leave the European Union.

In coming years, it's highly possible that major companies in London will no longer have unfettered access to the EU — and many firms have voiced a need to move employees elsewhere.

That's where Dublin comes in.

"A lot of businesses in the U.K., in order to stay part of the EU, will expand operating subsidiaries or even redomicile to Ireland," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management. "Having Dublin become more of a financial center could be part of the longer-term trajectory here."

Dublin has a number of things going for it: First and foremost, as the capital of the Republic of Ireland, it's still in the EU and will continue to enjoy freedom of trade and movement with Europe. It also has close proximity to London and Continental Europe, universal English language fluency, an existing banking presence, and a low tax policy.

"Ireland could be a beneficiary of the chaos that's being caused by this Brexit vote," Jacobsen said, adding that the city's "somewhat similar heritage and language" are appealing.

The country's tax system attracted foreign companies long before the idea of a Brexit. The corporate tax rate is among the lowest in the developed world, at 12.5 percent for trading income, and 25 percent for non-trading income, according to the American Chamber of Commerce in Ireland.

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