Brexit Contributed to Gibraltar's Economic Growth in 2016
The UK leaving the EU was not bad news for everybody, as it brought a surprising upsurge in Gibraltar’s economy right after the announcement was made. In fact, the last six months were good for businesses in Gibraltar which registered higher incomes thanks to the “community spirit” which has helped local traders. Our company registration agents in Gibraltar can assist foreign investors seeking to relocate to the Rock in order to open companies.
The low taxation system and the community have helped Gibraltar companies
It came as a positive surprise for everybody when one of the largest financial companies in Gibraltar announced the figures registered by the economy in the last few months, considering the announcement of UK’s exit of the European Union. The last two quarters, equivalent to the last six months of 2016, brought an increase in Gibraltar companies’ income. according to the report. The growth was based on the community’s efforts to purchase services and goods from local companies which has helped both large and small traders.
The low taxation system was another factor leading to this increase, as lower taxes and the great number of tac exemptions have encouraged investors to open companies in Gibraltar and thus injecting more capital into the country’s economy.
Our Gibraltar company formation consultants can offer information on the Rock’s taxation system.
Gibraltar has to work out cross-border commute for workers
Gibraltar has a low active population on the labor market and the increasing number of companies will lead to demands for more workers which will most likely create difficulties for cross-border commuters from Spain once the Brexit is completed. However, the government is confident that there are solutions which will benefit both foreign workers and local companies.
A possibility which is entertained by both the Gibraltar and the Spanish governments is a separate agreement which would allow Spanish employees of Gibraltar companies to cross-border without any visa requirements, however this will be determined over the next two years.
Foreign investors interested in opening companies in Gibraltar can rely on the company registration services offered by our local representatives, so do not hesitate to contact us.