In this study, we argue that European countries’ extensive relationships with former colonies represent a location factor that attracts foreign headquarter investments. The strategic role of foreign headquarters as coordinators, opportunity detectors, and global bridgeheads makes the location choice of headquarter activities sensitive to historical-based institutional connections. Drawing on a sample of 2230 foreign headquarter investments in Europe, we fnd that the stronger the combined efect of historical connections and current economic relationships with former colonies, the higher the probability of attracting headquarter investment projects. We refer to this combined characteristic as colonial-based connectivity. The study fndings sup port the hypothesis that past colonial relationships and historical context infuence FDI decisions and location preferences. We contribute to the literature by advancing the understanding of foreign headquarter location choices, and by demonstrating the importance of historical context in international business research. We emphasize how the former colonial infuence continues to confer advantages upon some coun tries, including the attraction of FDI.