Gibraltar is a British Overseas Territory with a land area of just 2½ square miles (6 km²) and a population of c.30,000. It is located on the southern end of the Iberian Peninsula at the entrance of the Mediterranean. Gibraltar benefits from a diverse and extensive economic base. Its economy is based on general trade, the provision of financial services, communications, e-gaming, tourism and maritime activities.
Gibraltar is a self-governing, self-financing parliamentary democracy that is incorporated into the European Union by virtue of the UK’s membership. Under Article 299(4) of the Treaty of Rome – which established the European Community – the provisions of the Treaty are applied throughout the European Territories for whose external relations a Member State is responsible. As a result, Gibraltar-licensed banks, investment services firms, UCITS, insurance companies, reinsurance companies and insurance mediation firms benefit from access to the single European market and therefore a potential client base of over 500 million people.
A new corporate tax regime was introduced in January 2011. Tax is paid at a rate of 10% on any income accrued or derived in Gibraltar. Tax will not apply to non-Gibraltar sourced income, or to passive income – dividends, interest, royalties etc. Should the company derive income both in and out of Gibraltar, only the portion earned in Gibraltar will be subject to tax. In practice this means that most Gibraltar companies which do not trade with other Gibraltar resident companies or individuals are able to operate tax-free. Together with the fact that Gibraltar is a full member of the EU, this offers real and perceived advantages. Gibraltar is regarded as a “low tax” not a “no tax” jurisdiction.
There is no withholding tax on dividends, interest or royalties. There is no Capital Gains Tax (CGT) in Gibraltar, or any wealth, gift or other capital taxes. There is no Value Added Tax (VAT) in Gibraltar.
Personal income tax is charged on income accruing in, derived from or received in Gibraltar. It is likewise charged on certain income, accruing in, derived from, or received in any place other than Gibraltar by any person ordinarily resident in Gibraltar. “Ordinarily resident” refers to an individual who, irrespective of whether such individual is domiciled in Gibraltar or otherwise, resides in Gibraltar except for reasonable temporary absences. An individual that is a British subject or citizen of the Republic of Ireland who is employed in Gibraltar and resides in the surrounding area is also considered ordinarily resident. Gibraltar has introduced a number of tax incentives that allow certain categories of resident individuals to limit the total tax payable in any tax year, subject to certain criteria being met.
The Gibraltar Financial Services Commission must regulate any firm providing financial services to the public; details of regulated firms may be found at www.fsc.gi/fsclists/categorysearch.aspx
To date, Gibraltar has not signed any Double Tax Treaties but has entered into close to 100 Tax Information Exchange Agreements (TIEAs). Gibraltar is fully compliant with all international norms and meets the highest possible standards in relation to transparency and anti-money laundering regulations.
The land border with Spain is open 24 hours; the territory boasts an international airport with several daily scheduled flights to the UK. Facilities are available for executive jet users and Tangier (Morocco) lies across the Strait of Gibraltar, which is 9 miles (14 km) wide at its narrowest point.
The first Sovereign office was established in Gibraltar in 1987; today it is the largest group office employing close to 100 people. Sovereign is one of the most significant private sector employers in Gibraltar.
Gibraltar is located within the Central European Time Zone (CET), which is GMT+1. Daylight saving is observed during the summer months.
Registration Number 29296
Sovereign Trust (Gibraltar) Limited – Licensed by the Financial Services Commission as a Company Manager under Licence number FSC 00143B.02/99.
Sovereign Trust International Limited – Licensed by the Financial Services Commission as a Professional Trustee under Licence number FSC 00215B.02/99.
Government of Gibraltar – www.gibraltar.gov.gi
Gibraltar Chamber of Commerce – www.gibraltarchamberofcommerce.com
Gibraltar Financial Services Commission – www.fsc.gi
Gibraltar Finance – www.gibraltarfinance.gi