Open a Foundation in Gibraltar

The Private Foundation Ordinance of 1999 was until recently the main legal framework regulating the establishment of foundations in Gibraltar. Under this law, foundations are defined as “vehicles for holding private assets” for the benefit of certain individuals or classes of persons. In 2010, the Gibraltar Income Tax Act included foundations in the same category as trusts. Compared to trusts, foundations are separate legal entities and the assets they protect have specific purposes. The foundation has its own corporate structure and management.

Foreign investors seeking to set up a foundation in Gibraltar can do so by incorporating one of the following types of companies:

• -          company limited by guarantee with a share capital,
• -          company limited by guarantee without a share capital.

For assistance in setting up any of the companies above you can request the services of our Gibraltar agents in company registration.

Registering a foundation in Gibraltar

The company limited by guarantee is the only legal form the EU acknowledges a foundation established in Gibraltar. In order to open a foundation in Gibraltar, the following conditions must be fulfilled:

• -          the form of incorporation must be a company limited by guarantee with or without a share capital,
• -          the name of the company must contain the word “foundation” at the end,
• -          the Memorandum must specify the company’s object of activity is to maintain the assets of certain persons,
• -          the company must have a Gibraltar resident as director or shareholder.

Our agents in Gibraltar can prepare the Memorandum of a foundation. 

You can watch the video below for more information on how to open a foundation in Gibraltar:

The advantages of setting up a Gibraltar foundation

Among the advantages of opening a foundation in Gibraltar are:

• -          it is a good way of protecting family assets,
• -          it is an effective means against debt collection procedures,
• -          it can be used as an estate planning solution,
• -          it can be used as a tax planning method.

Another advantage of a Gibraltar foundation is that the name of the shareholder can remain undisclosed to the public.

Under the Income Tax Act, Gibraltar foundations can benefit from tax exemptions. Our Gibraltar agents can explain what the tax benefits of foundations are. You can also contact us for help in setting up a foundation in Gibraltar.