The Key Benefits of Gibraltar
No Capital Gains Tax
With no Capital Gains Tax in Gibraltar, buying and selling any property (investments, shares, real property) at a profit has no adverse consequences. Gibraltar offers considerable opportunity to venture capitalists and entrepreneurs planning to set up, or grow businesses for a gain.
Gibraltar’s exemption from EU harmonisation taxes, specifically VAT, gives companies trading from Gibraltar an important competitive edge being able to pass on savings to customers of between 15-20%.
No Inheritance Tax
With no inheritance tax or estate duty, Gibraltar is an excellent jurisdiction for estate planning and controlling family wealth.
Low Corporation Tax
The standard rate of corporation tax is 10%. However, only income accrued or derived in Gibraltar is taxable in Gibraltar. Consequently, a company that accrues its income overseas will not be taxed on that income in Gibraltar.
Low Personal Income Tax
There are two distinct systems that the tax payer can elect to come under;
Allowance Based System; or
Gross Income Based System.
In essence, all taxpayers will pay an effective rate of tax of less than 25% and the Government of Gibraltar is committed to reduce this amount further.
Category 2: High Net Worth Individuals Tax Status
Individuals, who are able to meet the criteria, can enjoy a low rate of income tax. Only the first £80,000 of assessable income is taxable, which means a maximum amount of tax payable annually of £27,560 (minimum amount set at £ 22,000). In addition Category 2 individuals are not required to abide by any rules regarding residing a minimum number of days in Gibraltar, which can be very attractive to individuals who travel frequently. This special tax status has proved to be a very powerful tax planning tool for high net worth individuals.
Stable Government & Economy
Gibraltar is an autonomous self-sufficient territory that has been British since 1704. In 2001, 99% of the electorate voted in favour of retaining our modern, non-colonial relationship with the UK. Today Gibraltar enjoys a vibrant, modern, democracy whose security is guaranteed by our Constitution.
Gibraltar is an International British Finance Centre of excellent standing with the Financial Services Commission having an enviable reputation as the financial services regulatory body.
Regularly audited and recognised by international bodies such as the IMF, OECD and FATF, Gibraltar is considered a low tax onshore territory and is on the OECD white list of jurisdictions.
A picture of the Union Jack with a gavel and block laying on it.
Gibraltar’s legal system is based on English common law and modelled on the laws of England & Wales. Nevertheless, there are local differences derived from modifications or exclusions by Her Majesty in Council or an Act passed by the Parliament of Gibraltar. In the main, such distinctions reflect compatibility with the local social, political and economic models and define Gibraltar’s separate legal jurisdiction.
All Gibraltar lawyers and accountants are trained in the United Kingdom which ensures parity with UK counterparts and enhances Gibraltar’s enviable reputation for professional services. Additionally, there is a close similarity in court systems and procedures which provides familiarity to both UK professionals and clients alike.
Gibraltar has its own High Court and Court of Appeal with the ultimate appeal Court being the Privy Council (equivalent to the UK Supreme Court, formerly the House of Lords).