Information on Gibraltar
Gibraltar is part of the European Union and yet within close proximity to Africa. It is a low tax jurisdiction and is VAT free. It has no capital gains, estate duty, wealth, inheritance, gift or other capital taxes. Gibraltar has an International airport; excellent road and sea links into Europe and Africa.
Gibraltar is a popular financial destination for an eclectic mix of international executives, authors, sportsmen, corporations, individuals, families and many others, who want to achieve their financial and business objectives. They understand the importance of tax and succession planning and protecting their assets from unexpected events.
Gibraltar is self-governing through its democratically elected parliament, however, under its Constitution matters of defence and foreign relations are the responsibility of the United Kingdom.
The jurisdiction has established itself as a prosperous financial centre over the last 40 years. Benefiting from a stable and growing economy and a favourable tax regime, its political stability, robust commercial and professional infrastructure contribute to its attractiveness as a financial jurisdiction.
Gibraltar’s client demographic covers all four corners of the globe and their business and investment interests are likewise spread across the globe, managed from Gibraltar. The Jurisdiction is able to offer bespoke company and fiduciary services at competitive professional rates. Gibraltar’s fiduciary companies can deliver and manage simple or complex corporate and trust structures, on a daily basis, in virtually any jurisdiction.
ADVANTAGES OF A GIBRALTAR COMPANY
- No tax on profits; A Gibraltar company conducting profit-making activity outside of Gibraltar will not suffer tax on its profits.
- Low tax-rate of 10%. Only profits accrued in or derived from Gibraltar will attract corporate tax.
- 0% import and export duties on the sale of all forms of art.
- Gibraltar is part of the EU and is subject to EU directives on banking, insurance and financial services. Gibraltar has implemented the EU directive on administrative cooperation on tax matters with all 28 member states.
- The legal system in Gibraltar is based on English Common Law with some local statute law variations. As part of the European Union, Gibraltar provides easy access to the EU financial markets and as such is subject to its directives and regulations.
- Stable financial centre. Gibraltar has a stable Government and has in place Banking, Insurance and Companies Acts as well as a Financial Services Act.
- Gibraltar has been listed as a “White”territory by the OECD since 2009, removing any “tax-haven” stigma.
- Excellent regulation of company managers. Trust and Company Managers must be authorised and are regulated by a supportive Financial Services Commission.
- There is no VAT in Gibraltar; therefore VAT is not an issue from a Gibraltar tax perspective.
- Quick company incorporations. Companies can be incorporated within a matter of a few days.
- Easy company administration. Documents can be prepared, notarised and legalised within Gibraltar itself.
- Low cost. All business costs are extremely competitive when compared with other Jurisdictions.
- Shareholders may be individuals or corporate entities. Gibraltar companies are flexible to your needs.
- Company structures can be private. A Gibraltar company may dispense with the requirement of Annual General Meetings of shareholders.
- Stable currencies. The currency is the Pound Sterling but Euros are widely used.
- Company offices need not be resident in Gibraltar.
- Secure and reliable communications and travel. Gibraltar has satellite based digital telecommunications systems, efficient postal service and daily scheduled airline services.
ADVANTAGES OF DOING BUSINESS IN GIBRALTAR
- Goods imported into Gibraltar are subject to import duty at the rate of 0%, 6% or 12%.
- Gaming Tax (On-line Gaming) Levied at the rate of 1% of relevant income capped at £425,000 and with a minimum payable of £85,000, per licence, per annum.
- Discounts for early payment of rates for businesses. There are generally from 10% to 20%.
- New start-ups benefit from a 50% discount in rates in their 1st year of trading, and 25% for the 2nd year.
- Income from royalties is not taxed in Gibraltar.
- Wear and tear allowances are 20% per annum on a reducing balance basis for companies that pay a higher rate of corporate tax.
- Tax and residential benefits in Gibraltar for high net worth individuals and High Executives possessing specialist skills.
- 30% standard rate of tax for individuals and trusts.
- Tax relief on contributions to an approved Pension scheme of up to 1/6th of employees earned income. Overall employer and employee contributions are eligible for tax relief of up to 25% of earned income.
- Ability to claim double taxation relief in respect of the tax paid abroad if a person is resident and liable to pay tax in Gibraltar in respect of income also taxed abroad.
- There is no capital gains tax, wealth tax or estate duty in Gibraltar.
- For employees in Gibraltar, collection of tax is initially through a Pay As You Earn (“PAYE”) system.
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