Although Gibraltar is not strictly an offshore tax haven, it remains a dream destination for many foreign investors considering company or trust formation. An efficient and sophisticated business environment, coupled with no wealth taxes, no gift taxes, no inheritance tax, no capital gains tax, or tax on bank interest.
Corporation tax in Gibraltar is charged on the income accruing in or derived from Gibraltar, on the profits or gains of a company or trust from any trade or business corporation at 12.5%.
If you’re considering how to set up a Gibraltar company then please contact us for expert advice and information.
A summary of Gibraltar Corporate Taxes is available here.
What makes Gibraltar so attractive?
The low tax rate and the absence of corporation tax for Gibraltar companies trading outside Gibraltar make Gibraltar an attractive place for doing business.
This is further enhanced by the fact that English is used for conducting business, which facilitates communication with other jurisdictions.
Gibraltar is now the only jurisdiction in the world that enjoys ‘passporting rights’ into the UK.
Post Brexit, the UK and Gibraltar governments agreed that Gibraltar licensed firms will continue to be able to provide their services into the UK market and set up branches in the UK on the strength of their Gibraltar licence.
For EU entities that have lost their right to passport into the UK, a new Gibraltar subsidiary can enable them to continue to access the UK market from a more tax efficient platform.
Is Gibraltar a stable country?
Gibraltar’s economy is powered by a diverse range of activities which broadly fall into four categories – tourism, financial services, online gaming and the port.
Gibraltar has remained open for business despite Brexit and the global pandemic and continues to experience healthy growth in GDP. The official currency of Gibraltar is Sterling and there are no exchange controls.
What are the most common types of formation in Gibraltar?
The following forms of entities are the most popular to incorporate in Gibraltar:
– Gibraltar non-resident company (offshore company)
– Gibraltar Limited Liability Company (LLC)
– Gibraltar Public Limited Liability Company (PLC)
– Gibraltar Branch
What are the main features of a Gibraltar non-resident Company (offshore company)?
– The Gibraltar non-resident company is a limited liability company that requires only one shareholder and one director. The require minimum share capital is GBP 1
– This business entity is incorporated in Gibraltar with the Company House Gibraltar but owned and managed by non-residents of Gibraltar whose meetings are also held outside of Gibraltar
– The non-resident company is not recognised as a taxpayer and enjoys tax-free status. Therefore, this is a simple and inexpensive offshore establishment available to Clients looking to incorporate a company in Europe
– In order to retain its non-resident status for tax purposes, the non-resident company may not trade within or remit income into Gibraltar
What are the main features of a Gibraltar Limited Liability Company (LLC)?
– A Gibraltar LLC requires only one director and one shareholder of any nationality. The minimum paid-up capital required in GBP 100
– If the company is making more than GBP 500,000 of sales per year, it is mandatory to appoint an auditor resident in Gibraltar who is registered and regulated by the Financial Services Commission.
– The company must submit annual audited financial statements.
What are the main features of a Gibraltar Public Limited Liability Company (PLC)?
– A Gibraltar PLC is required to appoint a minimum of two directors and seven shareholders of any nationality. The minimum paid-up capital required is GBP 20,500 and a company secretary must also be appointed
– It is not mandatory for a Gibraltar PLC to appoint a resident director
– A Gibraltar PLC must appoint a statutory auditor resident in Gibraltar who is registered and regulated by the Financial Services Commission.
What are the main features of a Branch in Gibraltar?
– Foreign companies are able to set-up a Branch in Gibraltar
– The Branch is required to appoint at least one corporate agent who should be resident in Gibraltar and authorised to accept service of any notice on behalf of the Branch
– The branch is treated as a separate legal entity and is subject to the standard corporation tax of 12.5% on income sourced within Gibraltar.
What is the regulatory environment like in Gibraltar?
The Government of Gibraltar applies the lightest of touches, and (subject to certain conditions) offshore companies paid no corporation tax at all. Today Gibraltar remains a business-friendly low-tax centre for those considering company or branch registration.
The Corporation Tax rate currently stands at 12.5%, there are low treaty Withholding Tax rates, and its regulatory requirements are now on a par with many other EU states. Our legal and tax experts can help you negotiate the various regulations and give friendly help and advice on the many benefits of company formation Gibraltar – contact us now.
How easy is it to close a Gibraltar company?
Please contact us in order to discuss closing your company in Gibraltar.
How easy is it to recruit staff in Gibraltar?
The economy has powered ahead in recent years, creating near-full employment and raising the stakes for foreign companies seeking to attract good staff. Having said this, the labour pool is generally well educated and rates of pay are comparative to the EU average. If you want the pick of the crop, our recruitment specialists are ready to help.
What about banking facilities in Gibraltar?
Gibraltar is an important regional investment centre and has developed sophisticated international banking facilities to support it. Many major international banks have branches here, together with local commercial banks, and the financial system which is supervised by the Gibraltar Financial Services Commission is robust.
For assistance with opening a bank account in Gibraltar, please contact us.