Tax Haven Gibraltar

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Tax haven Gibraltar has had a yearly growth rate of 7 to 12 percent over the past 12 to 15 years and promises continued success, despite measures to reduce preferential tax treatment granted to offshore entities over onshore companies through the imposition of a 10 to 12% tax rate in the near future.

As a member of the EEA (European Economic Area), tax haven Gibraltar makes passporting possible for firms from member EEA countries. Companies established in Gibraltar are therefore capable of setting up branches and operating free from the additional costs that would otherwise have been required for licensing and start-ups. Banking, insurance and fund management services are some of Gibraltar’s passported services.

Country Overview

Tax haven Gibraltar is located near the tip of the Iberian Peninsula at the most southern tip. Gibraltar is a British overseas territory. Queen Elizabeth II is the head of state and represented by a Governor who is not made responsible for the daily running of Gibraltar and mainly provides ceremonial representation for the Queen. Gibraltar got its name from the Spanish due to the country’s topography. Eventually, the country became commonly referred to as the Rock of Gibraltar.

2008 estimates showed that Gibraltar has about 29,200 inhabitants, making Gibraltar one of the world’s most densely populated countries. Within the population are found native Gibraltarians, Maltese, Minorcans, Sardinians, Portuguese, Genoese and Italians. About 78% of residents on tax haven Gibraltar are members of the Catholic Church. There are also Methodists, Pentecostals, Anglicans, Hindu, Bahia and Moroccan Muslim among other religious denominations. Many Gibraltarians speak the Spanish, besides many other due to the country’s ethnic diversity. English is the only official language. Gibraltar is recorded in history as the last habitat of the Neanderthal man. Caves of this extinct species date to as far back as one hundred thousand (100,000) years ago. Gibraltar is also linked with the Phoenicians, reported to be the first inhabitants and has acquired the identity of one of the Pillars of Hercules as a result of the legend of the Strait of Gibraltar as told by the Greeks.

For several years, the British and Spanish fought for Gibraltar. Under the Treaty of Utrecht in 1713, Spain handed Gibraltar over to the British. However, the Spanish continued to lay claim on Gibraltar. In 2002, a referendum between the Spanish and British for shared sovereignty was rejected by most Gibraltarians, about 99%. Gibraltar is 2.642 square miles and shares a territorial border of .75 miles with Spain. Tax haven Gibraltar has a subtropical climate and is known have more than 500 species of flora and fauna.

Gibraltar has a relatively large degree of autonomy and has an elected parliament which is unicameral consisting of 17 elected members who serve a term of 4 years. The Chief Minister is head of Government, which is made up of 10 elected members. There are no administrative divisions in Gibraltar but there are 7 Major Residential Areas such as East Side, Sandpits Area, Upper Town and South District (to name a few) with subdivisions known as Enumeration Areas. The official currency of tax haven Gibraltar is the Gibraltar Pound which is legal tender along with bank notes issued by the Bank of England. Tax haven Gibraltar is a respected offshore jurisdiction that has remained steadfast to its offshore principles and regulations. Thanks to a hard working Financial Services Commission, this tax haven was described as being at the forefront of the development of good practices by the International Monetary Fund (IMF). Tax haven Gibraltar perceives it necessary not only to establish and enforce regulations just for the sake of doing so, but to maintain a balance between the costs of these regulations and the benefits created. A few of the benefits that tax haven Gibraltar has accomplished from its compliance with the EU’s directives includes common customs tariff, VAT and common agricultural policy, which is considered as one of the major advantageous differences that distinguishes Gibraltar as a tax haven from other financial centers.

Gibraltar Fiscal Incentives and Advantages

  • Ideal investment center
  • No capital taxes – no tax on capital gains, gifts, inheritance, succession
  • No Value Added tax
  • Modernized infrastructure for business
  • Several incentives for new business and start-ups
  • Political and economic stability
  • Highly skilled labour force

Gibraltar Offshore Financial Services

In spite of difficulties confronted by the global economy, tax haven Gibraltar sought to ensure that offshore services continued to be of high standard, were administered proactively and receptive with regard to the considerations of the corporate world. During the period 2008-2009, offshore financial services produced 65 more jobs which represented a 2.3% increase in jobs for Gibraltar. Currently, tax haven Gibraltar records 103 licensed insurance companies, 28 intermediaries, 95 collective investment schemes, 9 management firms, 87 licensed trust companies and 40 protected cell companies. Offshore services in tax haven Gibraltar include the following

  • E-Gaming
  • International banking
  • reinsurance and insurance mediation
  • International insurance
  • Fund management
  • Collective investment schemes
  • Company formation
  • Maritime services
  • Trust Formation

Gibraltar Offshore Legislative Framework

Tax haven Gibraltar was among the first tax havens where legislative action was taken to outlaw money laundering and related criminal activities. This move was met regulatory measures that were applied to fiduciary service providers including professional trustees, company formation and management. Financial services laws in Gibraltar include the:

  • Financial Services Commission Act 2007
  • Financial Services Commission (Supervisory Acts) Order 2007
  • Financial Services (Banking) Act 1992
  • Companies Act 2007
  • Insurance Companies Act 1987
  • Limited Partnership Act 1927
  • Partnership Act 1895
  • Anti Money Laundering Act
  • Trustee Act 2007

Gibraltar Financial Services Commission (FSC)

The FSC was established in 2007 under the Financial Services Commission Act. Commissioners include persons with a well rounded track record in supervision, regulatory matters and financial services. The FSC comprises a Chief Executive and 7 other commissioners who are appointed by the Minister responsible for financial services. The FSC of Gibraltar tax haven is responsible for regulating the financial services sector and helping to protect the interests of stakeholders and the local public, so as to ensure that Gibraltar is a safe, successful and adequately regulated financial services center in keeping with international standards.

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