The UK is playing a major role for Japanese businesses expanding into Europe post Brexit
The UK is playing a major role for Japanese companies expanding into Europe post Brexit, say leading audit, tax and business advisory firm, Blick Rothenberg.
Yusuke Takanishi, a partner at the firm, said: “The UK has not declined in importance for Japanese businesses post Brexit. It has in fact, reinforced the UK’s role as a high value hub within a broader European footprint for Japanese businesses. The UK’s continued attractiveness rests on several structural advantages.”
He added: “From a governance perspective, the UK offers a transparent and predictable framework that is well understood by global investors. This consistency is often seen as more flexible compared to some continental European jurisdictions, where regulatory environments can be more fragmented or rules-based.”
Yusuke said: “Tax remains another differentiator. Although the UK is no longer part of the EU framework, its system remains comparatively competitive and stable, supported by a broad treaty network and incentives such as R&D relief. For many Japanese companies, the clarity and predictability of the UK tax regime matter more than marginal differences in headline tax rates when making long‑term investment decisions.”
He added: “The proof that the UK’s tax regime attracts Japanese investment can be found in the Office for National Statistics (ONS) reports. Japan accounts for around 9% of UK inward investment, making it the second‑largest source of investment after the United States (c. 40%). This underscores Japan’s role as a long‑term, industrial and strategic contributor to the UK economy.”
Yusuke said: “The competitive European landscape has evolved. Germany continues to attract large‑scale manufacturing investment, while countries such as the Netherlands and Ireland are frequently used for EU market access and holding structures. As a result, some Japanese companies are adopting dual‑hub models, combining a UK headquarters with operational footprints within the EU.”
He added: “In Japan, English is taught as a second language in most schools, and it would place an additional burden on Japanese businesspeople to learn yet another European language, such as French or German. It is also not uncommon for people in EU countries to have some grasp of English or be fluent in it. The UK additionally benefits from a globally recognised legal framework and the depth of its professional and financial services, particularly in London.”
Yusuke said: “These factors make it significantly easier for Japanese companies to establish regional headquarters and access high‑quality talent. The UK also retains a highly international business environment, which is essential for companies operating across multiple markets.”
He added: “Overall, however, the UK’s strengths in governance, talent, and global connectivity mean it remains a first‑choice location for Japanese businesses.”