Taxation

Gibraltar provides an attractive fiscal environment for business and investors. Key incentives include:

• No value added tax (VAT) or other sales taxes
• No capital gains tax
• No wealth tax
• No exchange controls
• No inheritance or gift taxes or estate duty
• Tax efficient opportunities for structuring business

Incentives for individuals working in Gibraltar

Under certain circumstances Individuals possessing special skills may be granted a special tax status which restricts the amount of income tax chargeable on their emoluments.

Incentives for high net worth individuals who become resident in Gibraltar

Provided certain conditions are met, a high net worth individual's income tax liability in Gibraltar will be restricted to minimum of £10,000 and a maximum of £20,000 per annum. No withholding tax on interest earned on local bank deposits by non-residents.

Corporate Tax

Several fiscal structures are available which allow investment holding or other niche activity to be zero rated for tax purposes. In other circumstances even a trading company can attract very low tax if the company meets criteria set by the Government. Applications for exempt or special tax (Qualifying) status are made to the Tax Licensing Unit of the Ministry of Trade and Industry. The corporate structures which give rise to the possibility of application for special fiscal status are set out in legislation. Further information is available on request.

Company formation and management

A company can be formed in Gibraltar within a minimum of 24 hours. Established companies may be purchased directly. The criteria for forming a company are as follows:

There must be a minimum of one shareholder, either corporate or individual

There must be a minimum of one director, either corporate or individual

The company must maintain a registered office within Gibraltar

The management of the Company is the responsibility of the directors

In Gibraltar a large number of firms licensed by the Financial Services Commission (FSC), offer management services, as well as a variety of other services to companies.

Trusts in Gibraltar

Whilst Gibraltar has been established for many years as a recognised centre for company management, it is also an excellent jurisdiction in which to create tax exempt trusts for succession planning. Gibraltar trust law, both in respect of statute and principles of equity, closely follows UK models. There are minor differences (for example, the UK perpetuity period is a maximum of 80 years whereas it is 100 in Gibraltar) but the similarity of substance is particularly advantageous for advising solicitors familiar with UK trustee practice. Gibraltar has had Asset Protection Trust law for several years. This enables the trustees to register the trust voluntarily with the Gibraltar authorities and, by complying with the requirements of the law, ensure that the assets in that trust will not be voidable by future creditors of the settlor. Any potential settlor is wise to take tax and legal advice in his or her country of residence and, in Gibraltar, to consult a qualified practitioner with a proven track record in the provision of trusteeship.