Interest income paid by banks, building societies, or other financial services institutions is exempt from income tax in Gibraltar. Benefits of Doing Business in Gibraltar. Si sigues utilizando este sitio asumiremos que estás de acuerdo. This amazing change is certainly due to the biggest industries which invest in the country. Similar discussions are underway concerning Gibraltar and Malta-based insurers to find a mutually beneficial solution to the issue of passporting services post-Brexit. 0000003566 00000 n Sotomarket, oficina 8 The GFSB is a non-profit organisation that exists to help small businesses in Gibraltar to start, grow and thrive. Under Article 227 of the Treaty of Rome, Gibraltar is a member of the European Union, having gained membership automatically when the United Kingdom joined in 1973. • Solid global reputation, strong regulation and full compliance with key European and international treaties. No tax is payable on a Gibraltar trust, provided the trust does not earn income locally and/or the Beneficiary is not a Gibraltar resident. Trust Key Benefits of Gibraltar. • Highly attractive tax regime with a 10% corporate tax rate, no inheritance, wealth, capital gains or withholding taxes and stamp duty levied only on Gibraltar-based property sales. The Rock itself was known to ancient mariners as one of the “Pillars of Hercules”, the other being Jebel Musa mountain in Morocco. As with Gibraltar’s gaming industry, however, only the most trusted, top-tier applicants will be granted a coveted operating licence. Protected Cell Company This Guide is intended to assist BUSINESS PRESENCE Gibraltar is an excellent hub for the establishment of international business. Although Gibraltar has its own autonomous Parliament, legal practitioners must first gain their qualifications from the United Kingdom. 0000042156 00000 n (See chapter on Setting up a business in Gibraltar.). Gibraltar is well equipped to host its roster of high-profile conferences, festivals and events, including the Gibraltar International FinTech Forum (GibFin) and the KPMG eSummit. UK-facing companies comprise the bulk of these; one interesting statistic to note is that one in five UK cars are insured with Gibraltar-based companies. As a member of the Commonwealth of Nations, Gibraltar also belongs to a close, international community which, in 2016, saw intra-member trade worth $560 billion. Thanks to an average of 300 days of sunshine per year, Gibraltar also benefits from high levels of tourism. Finance and insurance companies are regulated by the GFSC; to operate in Gibraltar companies (and indeed certain individuals) must be registered with the GFSC and possess a relevant licence. Generally speaking, however, Gibraltar’s swift legislative turnaround means the jurisdiction is fully up to date with EU laws and directives, where applicable, such as the General Data Protection Regulation (GDPR), and will continue to maintain this harmonisation for the foreseeable future. 0000007558 00000 n Partnership A business comprised of two or more parties, who share the operation of the business, as well as the seed capital, running costs and risks of the business. Gibraltar: Doing business and staying in touch Doing Business in Gibraltar. Autovía del Mediterráneo E-15, Salida 130, PO Box 199, Madison Building, Stamp duty is only payable in respect of the transfer of real property situated in Gibraltar and, in respect of the creation and increase of share capital. Stamp duty in respect of the latter is fixed at £10 regardless of the amount of share capital created or increased. The move was welcomed by investors, widely applauded by others within the crypto community and resulted in a surge of licence applications to the Gibraltar government. The 10% tax rate also applies to any income derived from inside Gibraltar. It enjoys a solid global reputation for stability and efficiency with robust infrastructure and prudent regulation. GFSB MEMBERS BENEFIT FROM: In Gibraltar there are two types of companies: resident and non-resident. Business language. %PDF-1.5 %���� 336 0 obj <> endobj xref 336 32 0000000016 00000 n Gibraltar affords special status, known as Category 2 status, to individuals whose net worth exceeds £2,000,000. 0000037401 00000 n Doing Business in Gibraltar 2016 has been written for Moore Stephens Europe Ltd by Moore Stephens Limited. Gibraltar’s high quality schools have curriculums based on those in Britain, though interestingly, secondary school grades are consistently higher than the UK average. A company is considered resident if its administration and operation is controlled from inside Gibraltar. English is normally used for business, but Spanish may be used for business connected with Spain. Gibraltar encapsulates approximately 29 kilometres (18 miles) of roads, including tunnels which go through the Rock itself. Brexit fears have not slowed foreign investment, which grew in 2017 and Gibraltar’s impressive advances in the blockchain sector continues to make headlines and has resulted in a massive surge in interest in the jurisdiction. Source: Spotlight, Gibraltar Residential Market 2016, Savills. Review of Data Irregularities: Report prepared by Management of the Development Economics (DEC) Vice-Presidency, the World Bank Group. Unlike a trust, a foundation has legal personality and can hold assets as legal and beneficial owner. They are also subject to an annual tonnage tax. Interest Loan interest is only taxable at the rate of 10% to the extent that it is received or receivable by a Gibraltar registered company from another company and exceeds £100,000 per annum or, constitutes a trading receipt. 4. Gibraltar’s banking industry is extremely business-friendly and enjoys a positive reputation globally. EY Gibraltar tax alerts and other documents. Property in Gibraltar, both residential and commercial, has always been in high demand and therefore represents a very smart investment. Businessmen and women are expected to dress smartly in Gibraltar, with most men wearing suits to the office. Registering a place of business is generally more appropriate for non-trading entities with no selling activity in Gibraltar. The sale or transfer (except between spouses) of property within Gibraltar is subject to stamp duty; the amount is variable and is based on the value of the property and sale price. 0000037738 00000 n Tourism and retail are two significant contributors to Gibraltar’s economy, particularly where both areas intersect, with a steady stream of tourists year-round shopping for VAT-free bargains on jewellery, electronics, fashion and cosmetics. The proposal, which featured in Bloomberg, would see Gibraltar-based insurers opening offices in the neighbouring La Linea De La Concepcion, which would, in turn, provide additional employment and investment to the Spanish border town. Banks and investment firms must also submit to an Independent Capital Adequacy Assessment Process (ICAAP) review and acquiesce to the FSC’s ruling on capital. The primary characteristic of a Foundation is that it exists and operates as a separate legal personality, with the ability to hold and manage property in its own name. Gibraltar currently has 27 Tax Information Exchange Agreements and enjoys full OECD, IMF and FATF “white list” status. Immigration and the right to enter Gibraltar are governed by the Immigration Control Ordinance. Gibraltar’s forward-thinking approach to crypto has been mirrored by its banking industry; at the time of writing both Turicum Private Bank and Gibraltar International Bank have announced their readiness to provide banking services to crypto businesses and individuals. Therefore a company that is resident in Gibraltar, but derives all profits from outside the jurisdiction, will not be liable to pay tax on this income. Establishing Residency. There are no restrictions on doing business with certain countries or jurisdictions in Gibraltar. Dress Businessmen and women are expected to dress formally and conservatively in Gibraltar, with most men wearing suits and ties to the office. Gibraltar companies may also undertake court-sanctioned cross-border mergers, schemes of arrangement, amalgamations and reconstructions. Doing Business in Gibraltar 2013 has been written for Moore Stephens Europe Ltd by Moore Stephens Limited. Company Gibraltar’s GDP per capita during the same period was £56,612. The handbook was written to give the busy executive a quick overview of the investment climate, taxation, forms of business organisation and business accounting practices in Gibraltar. It has endured fourteen sieges, Barbary pirate raids, Napoleonic wars, Axis aggression and a 16 year border blockade by the Franco regime. Foundation The Private Foundations Act 2017 came into force in April 2017 allowing for the establishment of foundations in Gibraltar. Spain, by contrast has a much higher unemployment rate and Andalucía, which borders Gibraltar, is its worst affected region. Doing Business and Investing in Gibraltar. 0000003507 00000 n Its most prominent feature is the Rock of Gibraltar, a towering monolith of limestone some 426 m (1,398 ft) in height. Investors in Gibraltar are entitled to support through the European Regional Development Fund (ERDF), for business development, tourism, technology-transfer and infrastructure projects and the European Social Fund (ESF), for training and retraining projects. There is no restriction on the maximum number of shareholders that Gibraltar registered private or public companies may have. Gibraltar’s official currency, the Gibraltar Pound, is minted in Gibraltar and shares parity with the British Pound – both currencies are legal tender in Gibraltar. Trustees, however, can be resident in Gibraltar. 0000006909 00000 n British embassy or high commission Includes contact details for the Office of the Governor. Benefits of Doing Business in Gibraltar Forming a company in Gibraltar is relatively simple and has quite a few advantages compared to other EU jurisdictions. Business hours 9am to 5pm from Monday to Friday. Gibraltar also has its own University of Gibraltar, which opened in 2015. Dress. 0000001720 00000 n Gibraltar’s EIF regime was introduced in 2005, and its popularity has helped boost the growth of Gibraltar’s fund industry. A solid global reputation, strong regulation, competitive taxation, world class infrastructure, consistent economic growth and an efficient, stable and business friendly government – just some of the reasons why Gibraltar continues to attract global investors and entrepreneurs looking to establish a competitive business presence. The airport also caters to charter/private flights, as well as cargo planes and military aviation. Cross-border discussions are also underway to find a mutually beneficial solution that safeguards jobs in the insurance industry. The Port of Gibraltar is the largest bunkering port in the entire Mediterranean Sea. Gibraltar’s fascinating culture and history and stunning landscape, combined with its sunny climate, makes it a popular tourist destination, with over ten million visitors arriving in 2016 alone, resulting in a total revenue of £211.9 million. The Gibraltar International Magazine's home page has the most accurate and up to date Information, now available to you with the click of a mouse. Doing Business and Investing in Gibraltar 4 The firms of the Pricewaterhouse Coopers global network (www.pwc.com) provide industry focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders No VAT, no capital gains tax, and 10% corporation tax make the territory ideal for international business. Management Review of Data Irregularities in the Doing Business Reports from 2016 to 2020: Verification Report. Spanish may be used in dealing with companies from that country that operate in Gibraltar. 0000006581 00000 n BUSINESS PRESENSE • Gibraltar is an excellent hub for the establishment of international business. Gibraltar is also the perfect place to raise a family, it’s safe, friendly and immaculate with plenty to entertain the little ones ones too. • Stable, business-friendly and non-bureaucratic government legal system based on English Common Law and Pound Sterling as currency. Download the guide. 0000042378 00000 n Doing business in Gibraltar: This guide is prepared by Gibraltar office of Baker Tilly . Gibraltar’s small size and close-knit community delivers considerable speed to market with easy accessibility to key decision makers in the jurisdiction. It enjoys a solid global reputation for stability and efficiency with robust infrastructure and prudent regulation. Dividends are taxable in the hands of individuals who are ordinarily resident in Gibraltar unless the dividend arises from companies quoted on a recognised stock exchange, in which case this is not taxable. Dividend Receipts Income tax is not charged on dividends received by a company. Private funds are funds offered to a restricted class of up to 50 investors. Gibraltar weathered the financial crisis with barely a blemish and enjoyed steady growth, year on year, with a GDP of £1.9 billion from 2016 and 2017. wheels in motion. As a result the jurisdiction hosts some of the most prominent industry names including PwC, Deloitte, KPMG, Lloyds, Barclays and Royal Bank of Scotland. EY Doing Business in Gibraltar 2016 - 2017 Published on Dec 12, 2016 Published annually by #EY #Gibraltar a comprehensive summary of the areas and benefits of doing business in #Gibraltar Income Tax Individuals based in Gibraltar pay tax on income earned from between July 1st of one year, to June 30th the following year. online casinos and bookmakers) based in Gibraltar are also liable to a 1% tax on income up to a maximum of £425,000. Protected Cell Company (PCC) Under the Protected Cell Companies Act 2001, a new form of company was introduced in Gibraltar, the PCC. Foundations operate much like a company; they must keep detailed accounts and supply financial statements to Companies House. 0000003603 00000 n Economic and political outlook. 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