- 1 Minute Read
- 01st October 2008
Regus: The serviced office giant plans to move to Luxembourg and rename the firm
The announcement of several corporates moving their domicile residence abroad again raised the issue of the UK losing many big British businesses due to its uncompetitive corporate tax system.
Last August, the leading serviced office provider Regus , announced its plan to quit Britain due to its tax regime planning a move to Luxembourg. The world’s biggest serviced office space provider continued its profitability and expansion with increased pre-tax profits by 39% to £74.5m. Revenues rose by 23% to £507.5m and the company’s net cash increased 38% to £140.2m, as per Property Week.
In the current economic uncertainty, the Regus Group makes a new strategic move to help protect its taxation position as the credit crunch in the UK has brought more insecurity for international businesses whose holding company is in Britain and therefore under the UK tax regime.
Luxembourg was chosen by Regus as it meets the essential commercial criteria the group was looking for, including more stability with the tax regime for international companies as the group continues its worldwide expansion.
Mark Dixon, Chief Executive of the group, commented that Regus’ move is not only due the British tax regime but also to internationalise the business. He also stated that Regus will be renamed “New Regus”.
The Regus office space solutions have proved to be increasingly attractive to global, small and medium enterprises, especially since the beginning of the economic downturn, and the move to Luxembourg is a new move for the worldwide leader in view to a new strategy with “New Regus”.
Written by Emily Mouquot, Marketing Director.