Whether you’re a business owner looking to set up a company in Gibraltar, or you’re just looking for a new place to call home, here we set out just some of the many advantages of company formation in Gibraltar or taking up residence in Gibraltar.
Crypto, Blockchain and Trading Digital Assets
In 2018, Gibraltar became the first country in the world to provide a purpose-built regulatory framework for businesses using blockchain or distributed ledger technology (DLT).
This framework regulates firms carrying out by way of business, in or from Gibraltar, the use of DLT for storing or transmitting value belonging to others.
The Gibraltar Financial Services Commission has so far approved 14 cryptocurrency and blockchain firms under this innovative licensing regime.
Pedigree and legacy
Gibraltar offers a well-regulated, transparent and internationally cooperative jurisdiction with access to financial markets, including the right to access the UK market in financial services.
It has a common law legal system and a highly developed professional infrastructure. It is a domicile of choice for many financial services including companies, funds, traditional and alternative investment management, insurance companies and private clients.
Favourable tax regime
Gibraltar’s transparent, low-tax regime offers many advantages. The standard corporate income tax (CIT) rate is 12.5% and companies are taxed on a territorial basis, such that only income that is accrued and derived in Gibraltar is taxed in Gibraltar.
There is no VAT in Gibraltar, no capital gains tax, and no form of inheritance, wealth or gift tax. Most passive investment income – bank interest, dividends from companies listed on a recognised stock exchange, or dividends paid to non-residents – is not taxable in Gibraltar. Retirees pay zero tax on income from pensions.
A stable and resilient economy
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.
Unfettered access to UK markets
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.
Gibraltar is a self-governing and self-financing British overseas territory located at the southern tip of Spain, that enjoys a Mediterranean climate and a unique mix of cultural influences. English is the official language, though Spanish is spoken fluently by most residents.
Safe and secure with very low crime rates, despite the expansion of high-paying employment in Gibraltar and its development as a centre of wealth, Gibraltar’s prime property market still offers value.
Gibraltar’s location allows easy access to Spain, Portugal and North Africa, while its international airport offers flights to and from several UK destinations, as well as Morocco. Gibraltar has a deep seaport and is an attractive and convenient port of call for merchant vessels, cruise liners and yachts.
Attractive residency regimes
Gibraltar offers special residency regimes that are specifically designed to attract high Net Worth Individuals (Category 2) and High Executives Possessing Specialist Skills (HEPSS).
These make Gibraltar a very attractive home for entrepreneurs, suitably qualified individuals and their dependants, or for retirees that wish to enjoy the Mediterranean climate and lifestyle whilst living in an international finance centre with a favourable tax regime.
The Qualifying (Category 2) Individuals Rules provide for a well-established regime that limits income tax for High-Net-Worth Individuals wishing to reside in Gibraltar.
To qualify an individual is required to verify that he or she has a minimum net wealth of £2 million and is of good character. A Category 2 resident’s assessable income is generally capped at £105,000, giving (at current rates) a minimum annual tax liability of £32,000 and maximum of £37,310. Family income may be included.
The HEPSS rules are for employees who earn more than £160,000 per annum in Gibraltar and possess the specialist skills necessary to promote and sustain the Gibraltar economy or develop and achieve growth in a particular area that the Government is seeking to facilitate and encourage. Prescribed assessable annual income is capped at £160,000, giving (at current rates) an annual tax liability of £39,940.
The Sovereign Group offers a first-class suite of corporate and private client services.
With over three decades of experience in the Gibraltar market, we will assist you to select the most effective and efficient legal entity for your business and will then form and register that entity in Gibraltar in line with local laws and regulations.
As well as providing the necessary expertise in administering and managing companies, we offer the support to help businesses to maximise opportunities and achieve long-term sustainability, from full back-office solutions to assistance with tax and regulatory compliance.
This includes bookkeeping and accounting, payroll and HR, insurance, banking introductions, pensions, intellectual property protection, obtaining local licences and permits, executive relocation and specialist tax advice.
Our Private Client services assist families and entrepreneurs around the world to structure their assets to support personal, family, commercial and charitable interests. We can advise on all aspects of the design and implementation of structures from a broad range of vehicles in Gibraltar and elsewhere, including trusts, companies, partnerships and foundations, which can be tailored to meet a client’s diverse personal and business needs.
HNWIs and their families can benefit from substantial tax advantages if they move their residence to Gibraltar, which also serves an attractive base for the registration of commercial and pleasure yachts.
Sovereign has also established Sovereign Wealth in Gibraltar as a stand-alone, fully regulated asset manager to provide services to Sovereign Group clients.
Please get in touch to find out more about Gibraltar and the many ways in which we can help.