Snap Inc., the company behind the famous instant picture messages app, has announced that in January 2017, its international headquarters is now established in London, following the post Brexit economic boost.
The 150 million user app company Snap Inc. has confirmed it last week, its new worldwide office is to be set up in London. Increasing each year by 30% and estimated at $25 billion, Snapchat had already a small office in Soho, right in the centre of the City, with a 75 person staff. Since Tuesday 10th of January 2017, the UK office operates now as the international head.
“We believed in the UK creative industries”, explained Claire Valoti, general manager of the UK based Snap Group. “The UK is where our advertising clients are, where more than 10 million daily Snaptchatters are, and where we’ve already begun to hire talent.”
Originally based in Los Angeles, United States, the company has made an unusual move for an American company. In fact, other similar groups such as Google, Facebook or Twitter have chosen to establish their international headquarters to Ireland, where tax breaks are more generous and more advantageous.
But more than to get closer of its 50 million European users, Snapchat made a very strategic move in terms of economy. If Luxembourg and Ireland may now appear more appealing for overseas companies due to tax breaks compared to the UK, the OECD and the European Commission have recently been both pressuring down on the tech companies to strengthen tax avoidance and restrict tax deals. Ongoing investigations have been launched by several authorities and international institutions such as the European Commission to track down fraudulent tax deals. Apple, for instance, is to pay £11 billion to Ireland since August 2016 to back taxes.
In the post Brexit situation for London, Snapchat moving to UK couldn’t be more beneficial and will positively affect The City’s worldwide reputation. Although the current office with a 75 workforce only is relatively small, the company grows day by day and will go on expanding further.
The move of Snapchat sends a clear message to the world economy about post Brexit London. There is a highly skilled workforce, low taxes when compared to the European ones and a wide publicity. Snapchat decision shows that London remains a very attractive place to settle for creatives companies.