The global coffee chain – which has come under serious criticism in the UK from MPs and the public because it reported losses and paid only £8.6m in UK corporate tax between 1998 and 2012 and yet told investors it was profitable – said its strategic decision to move its HQ is to have better oversight of the UK, in which more than half of its European stores are located.

Announcing the move, Kris Engskov, President, Starbucks EMEA said: ‘Closer proximity to our biggest market will be critical to our success as we grow our business across Europe and the globe.’

The company employs 7,500 staff in the UK, referred to as 'partners' and said it expected to complete its move by the end of 2014.

Starbucks said this would effectively mean the company would pay more tax in the UK.

In a statement, Starbucks said it would continue to employ over 200 partners within its Amsterdam hub to support its EMEA business.

Referring to a contentious technicality over the location of its coffee roasting operation, the company said: 'On this site we roast and distribute all of the coffee for the whole of Europe, and that will not change with the European Head Office move.'

A spokesperson told Accountancy that it is not yet clear which senior executives would make the move, as this was currently down to individuals.

The move follows other multinationals that recently changed their headquarters in favour of the UK’s more favourable tax climate, including WPP, UBM and most recently, Informa.

Starbucks’ move may mark the beginning of the end of criticism of its controversial Dutch tax base, which allowed the company to pay a very low tax rate, which it revealed before a UK parliamentary hearing.

The company’s strategic decision also coincides with fast moving reform of the global tax regime, spear-headed by the Organisation for Economic Development and Cooperation (OECD) and backed by leading countries such as the UK and US, who wish to see an end to the use of tax havens and global shopping for the best tax rates so that companies pay their fair share of tax in the respective jurisdictions in which they operate.

Senior tax expert and partner at Pinsent Masons, Heather Self, contended however that the move would not impact greatly on the overall tax that the company would pay.

‘The government has introduced a series of measures to make the UK more attractive to multinational companies like Starbucks. For example, dividends received and paid are exempt from tax and UK corporation tax has also just been reduced (in April) and will be cut again next year.

‘If royalties continue to be paid to the EMEA holding company, these will become UK income rather than being taxed in the Netherlands. This will increase the UK tax payable, but may reduce the overall tax bill as the UK rate of 21% (20% from 2015) is lower than the Netherlands rate of 25%.

‘While locating a European holding company in the UK isn’t tax free there are many benefits to establishing your headquarters here. The government is making efforts so that the UK can compete with other European tax regimes,’ said Self.