The New Private Foundations Law in Gibraltar
The Private Foundations Law is a legislative project initiated several years back and passed at the end of 2017. The bill for this law was presented by the Minister of Commerce in March last year and was amended a few times in order to keep up with the international standards requirements before being passed. Below, our company formation consultants in Gibraltar offer an overview of the Private Foundations Act.
The Gibraltar law to cater to the needs of several industries
The Private Foundations Act was proposed as a reform which would help the financial services industry, but also those of trusts, fiduciary services and family offices. One of the main concerns of the legislators was to comply with international compliance and transparency standards which is why the new law required a lot of work.
In the end, the law was passed in 2017 and the definition of a Gibraltar foundation under it is that of a legal entity established with the purpose of offering certain assets for a well-defined purpose. The main characteristic of a private foundation in Gibraltar now is that the administration of the assets will be secured through a contract and not based on the fiduciary duties of the counselor. Also, a private foundation will be deemed as legal entity without shareholders, just like in other European jurisdictions. For that reason, it will be registered with the Public Register in Gibraltar.
Another aspect covered by the new law refers to the fact that private foundations in Gibraltar must have a council or a board of counselor with at least one local company with a professional trustee license as a part of that board.
Our company registration consultants in Gibraltar can assist those who want to set up foundations in the Rock.
The Private Foundations Act led to alterations in other Gibraltar laws
The creation of this act brought certain modifications to other laws, among which the tax legislation and financial services one. The following laws were amended in order to accommodate the creation of private foundations in Gibraltar:
- - the Income Tax Law of 2010;
- - The Rats of Tax Rules;
- - the Financial Services Law;
- - the Financial Services Regulation related to the Conduct of Fiduciary Services Business.
For full information on the new Private Foundations Law, please contact our representatives in Gibraltar.