Gibraltar Companies Have Compelling Advantages over Other Jurisdictions
Gibraltar is a British overseas territory that borders Spain on the south coast of the Iberian Peninsula. The British have had control over the region since 1704, when they captured it from Spain during the War of Spanish Succession. Today, Gibraltar’s sovereignty is a matter of contention between Britain and Spain, which both lay claim to it. However, Spain’s claim has been rejected by the European Union as well as the United Nations.
The country has a population of about 40,000 people and covers an area of roughly 3.5 square miles. There are more companies incorporated in Gibraltar than residents.
While small, Gibraltar has become an important financial centre in recent years and is ranked as one of the top 15 financial centres worldwide. It’s also an attractive place to set up a business thanks to its low taxes.
Gibraltar is not considered a tax haven due in large part to its tax transparency policy. Rather than attempting to facilitate tax evasion, Gibraltar takes a cooperative approach with other nations and acts responsibly in regards to international regulation. Gibraltar taxes its residents and local companies. It’s not a zero tax haven like Monaco.
That being said, Gibraltar is an excellent business haven. Let’s look at some of the benefits Gibraltar companies enjoy:
Gibraltar Companies Enjoy Tax Free Trading Outside Gibraltar
Gibraltar companies benefit from a corporation tax rate of only 12.5%, (increased from 10% in August 2021) which is one of the lowest corporation tax rates in Europe. But, it gets better if you’re not trading in Gibraltar. Any income earned by a Gibraltar company outside its jurisdiction does not have to pay taxes. Dividends, capital gains, interests and royalties are all tax free when the company is managed and trading outside Gibraltar. Any company that requires a license from Gibraltar will be considered to be fully taxable in Gibraltar.
English Language and Law
As Gibraltar is part of the United Kingdom despite its geographic location in the South of Spain it benefits from the English legal system and language. All documentation for Gibraltar companies is produced in English. You can navigate the filing of documents by yourself at Gibraltar’s companies house.
Ease of doing business
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. Moreover, Gibraltar boasts a stable economy and political system, which is ideal for businesses looking to set up operations there. Indeed, Gibraltar has been ranked as one of the world’s best places to start a company by Forbes magazine.
Gibraltar Companies benefit from Political and economic stability
A Gibraltar company offers the political and economic stability of being based in the UK with a number of tax advantages.
Gibraltar is a self governing British Overseas Territory which has enjoyed 300 years of stability as part of Britain. It’s also one of Europe’s most thriving economies, based on tourism, financial services and e-commerce industries. As such, it’s not part of the UK VAT system or the Eurozone.
Gibraltar is a good place to start a company
- Tax free trading for Gibraltar companies trading and managed outside Gibraltar
- Develop a good reputation by being in Gibraltar, an established center for offshore companies and businesses
- Enjoy low tax rates and pay only 12.5% on all income earned within Gibraltar
- English language and law
- Generous tax exemptions for executives and owners based in Gibraltar
Ease of Opening Offshore Bank Accounts for Gibraltar Companies
Gibraltar’s banking industry is small but mighty. The GFSC regulates all of its banks, and there are plenty of offshore banks to choose from. You can open an account in person or remotely (depending on the bank), but you’ll need to go in person if you want to set up a trust with your account.
Gibraltar has well-established commercial banks, which offer international banking services to foreign companies and individuals. This means that you can open an offshore account in Gibraltar and access your money from anywhere in the world through online banking facilities and ATMs. All banks offer internet banking services with a simple registration process and bank accounts can be opened remotely as long as you have all the necessary documents ready to submit via mail or email.
Bank secrecy laws are strict in Gibraltar and all communications between clients and banks are considered confidential unless otherwise specified by law. If you disclose any information to your bank regarding your finances, they cannot share this information with any third party—not even another branch of the same bank!
Minimal Filing Requirements in Gibraltar
Gibraltar companies are required to file annual returns with Companies House within 28 days of the anniversary of their incorporation date. Annual returns include information about shareholders, directors, and registered office address, along with any changes that have occurred over the year. Those who fail to file an annual return may be subject to fines or penalties.
If you want to maintain privacy it’s easy to use nominees as directors and shareholders. That way nothing will appear about you in the register of companies. There is, however, a register of beneficial owners.
Gibraltar has no exchange controls or restrictions on currency movement. Additionally, there are no interest restrictions imposed by Gibraltar laws on residents or non-residents alike. Gibraltar based companies can easily open accounts in Gibraltar and deposit money without fear of being penalized or having their funds seized by the government. Additionally, all banking information for Gibraltar companies remains confidential—even if the company is under investigation for allegations of tax evasion elsewhere in the world (so long as it does not directly involve Gibraltar).
Why do companies register in Gibraltar?
Gibraltar companies benefit from tax free trading on on profits generated outside Gibraltar. That combined with the English legal system makes Gibraltar an attractive place to incorporate an offshore company.
How many companies are in Gibraltar?
There are over 60,000 companies incorporated in Gibraltar. This makes Gibraltar one of the world’s leading offshore centres.
What industry is in Gibraltar?
Gibraltar’s biggest industry is financial services. It provides a haven for high net worth individuals and companies to optimise their tax planning.
What is a Gibraltar company?
Gibraltar companies are corporate entities incorporated under the laws of Gibraltar.
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Get in touch with us today to set up a Gibraltar company or discuss your options to reduce your tax rate to zero and protect your assets.