The new 2016 Budget doesn’t bring good news for small and medium-sized companies in Gibraltar only, but also for foreign investors seeking to build real estate on the Rock. According to officials, the new Budget contains a measure which provides for tax-free property rentals in Gibraltar. Our company registration agents in Gibraltar can offer more information on the incentives available for businesses on the Rock.
The new measure to be implemented by the Gibraltar Government provides for 24-months tax credits for real estate developers building new properties and renting them over the following 30 months. The new measure was welcomed by both companies operating in the real estate industry in Gibraltar, but also by employees commuting from Spain to the Rock on a daily basis.
The new measure is meant to attract both foreign investors who are interested in real estate development on the Rock, but also to prepare the real estate market for the incoming Brexit. According to specialists, Gibraltar could face a wave of incoming British citizens once the UK leaves the EU.
Not only the real estate industry will benefit from assistance from the central authorities, as the Government wants to consolidate the whole country’s economy by implementing new supportive measures.
Gibraltar companies applying for planning permits pursuant to the provisions of the Town Planning Act will benefit from a 200% credit od the architect’s fees. The application must be submitted within 2 calendar years and the companies must own the respective properties. The maximum credit to be obtained is capped at 5,000 pounds and can be recovered during the first three years through their tax returns.
Apart from companies, partnerships and sole traders in Gibraltar may also apply for 100% recovery of their capital allowance during the first year of operations.
The new 2016 Budget contains very advantageous benefits for start-up companies, so if you want to open a company in Gibraltar now is the time to do so. For assistance with the Gibraltar company incorporation process, feel free to contact us.