Legislation related to foreign investments in Gibraltar
Updated on Thursday 14th December 2017
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Gibraltar has a low tax regime, which offers a great business environment to foreign investors who are interested in opening a company here. The Gibraltarian tax system offers the potential of business development for foreign investments as it is considered an international financial center, and a “tax haven”.
Economic Highlights Related to Foreign Investments in Gibraltar
At the International Monetary Fund World Economic Outlook Database on Gross Domestic Product, Gibraltar was placed on the 3rd place, with a GDP growth estimated at 10.4% for the financial year 2014/2015, generating an increase in the levels of employment. As such, the economic environment offers good prospects for company formation in Gibraltar.
When setting up a company in Gibraltar, you should know that the state is VAT free and the corporate tax is established at the rate of 10%, under the Income Tax Act 2010.
Through the European Union’s tax directive – such as Parent& Subsidiary Directive and Interest& Royalties Directive, foreign companies operating in Gibraltar aren’t the subject of taxation for the following:
• withholding tax on interest,
The video below shows the main advantages foreign investors who open companies in Gibraltar have:
Company Entities in Gibraltar
If you want to set up a company in Gibraltar, you can choose from the following available entities:
• private limited companies, that must have at least one director,
• private limited companies by shares, which require that the shares of the company to be deposited in a bank in Gibraltar,
• public companies, which must have at least seven shareholders,
• limited partnership, which requires that the principal office to be in Gibraltar.
In Gibraltar, the audit procedure is performed only for the company with a taxable income over 1,250,000 GIP (Gibraltar pounds). Amongst the states of the European Union, Gibraltar has a unique status and approach to business environment and, although it doesn’t have any tax treaties concluded with the EU member states, it has 27 tax information exchange agreements, which facilitate the foreign investments here.
With a growing economy, Gibraltar represents an attractive business environment, especially for industries such as tourism, gambling, shipping and financial sector.
If you need further information on law tax regime when setting up a company, you can contact our company formation agents in Gibraltar.