Twitter plans to open a European HQ next year, the question is where in Europe will it be based.

Currently it looks like it will be a toss up between London, with whatever carrots the British government will have tried to entice them with, and Dublin - which, thanks to its low corporate tax rate, may ultimately make it a more attractive base to set up shop in.

Observers believe that Twitter will probably pursue the same well worn route that most of the major Silicon Valley companies have in Europe:  availing of the Irish corporate base for their tax returns, and setting up a London office which is strategically required to appear smaller, even as it becomes a more active centre for the company's business.

Asked for clarification of their intentions, Twitter's spokesman told the press: "We haven't got any local offices in Europe yet. We'll be hiring some folks in Europe in 2011."