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Tax Minimization in Gibraltar

Updated on Thursday 06th May 2021

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Gibraltar is what economists call “a tax haven”, as many taxes that are imposed throughout Europe are not applicable here. If you are interested in company formation in Gibraltar, we advise you to invest here as the economic environment offers good business perspectives in terms of taxation and on tax minimization procedures.

Taxes in Gibraltar

With a special regime in terms of taxes, Gibraltar has no double tax treaties in force with any other country, but it has signed 27 information exchange agreements.

An entrepreneur who wants to register a company in Gibraltar can have a series of tax advantages, created as a measure to help local and foreign investors to obtain business profits in a developed market. Our company formation agents can offer you more information about the tax regime in Gibraltar.

Unlike any other European country, Gibraltar does not impose the following taxes:

• capital gains tax;

• wealth tax;

• sales tax;

• value added tax,

• withholding tax on dividends.

Our company registration agents have also prepared this video on the main tax minimization solutions available in Gibraltar:

Information exchange agreements in Gibraltar

Although Gibraltar hasn’t signed yet any double taxation agreements, investors can rely on the Gibraltarian taxation legal system, as the country has ratified 27 information exchange agreements, which apply the international rules stipulated by the European Union and Organisation for Economic Cooperation and Development.

The agreements signed by Gibraltar offer the legal basis under which various tax relationships between countries are established, presenting the provisions on taxes, loans or transfer of assets that avoid double taxation of income generated in Gibraltar by foreign companies. Our company formation team can provide you further information on this matter.

If you set up a company in Gibraltar, the taxes paid on the income of your company will be charged only on the income accruing or deriving from Gibraltar; the rule is applicable to all types of companies.

Gibraltar and its Category 2 status

The Category 2 status was given to Gibraltar in 1992, however the Rock was known as a special jurisdiction for high net worth individuals from way before that. Even if Gibraltar is a British territory, it has, in fact, a parliamentary democracy sustained through self-financing. Also, Gibraltar is the only jurisdiction to also have a special status within the European Union.

Gibraltar follows the British legal system, however adjusted to the local economy, which give the territory a great credibility when it comes to high net worth individuals who come here in order to protect their assets.

An important aspect to consider is that Gibraltar is not deemed a tax haven, which also makes a great place for investments.

Our Gibraltar company formation agents can offer information on the investment legislation for those interested in setting up businesses here.

Gibraltar, one of the most prosperous territories in the world

Gibraltar has earned this status because of several factors, one of the most important ones referring to the fact that it has the 4^th highest per capita income in the world – 94,000 USD – and one of the lowest unemployment rates at global level, which at this point is below 50 individuals.

Those who want to qualify as high net worth individuals in Gibraltar must:

- have assets worth more than 2 million pounds;
- must not be a Gibraltar resident when applying for this status.

As for the benefits under this status, the maximum tax applies is 30,000 pounds for the whole year. Also, the applicant has the right to buy or rent property in Gibraltar

Please contact our agents, if you need further details on the tax minimization system or if you need consultancy in opening a company in Gibraltar.

Our Articles:

Tax Minimization in Gibraltar

Taxes in Gibraltar

Information exchange agreements in Gibraltar

Gibraltar and its Category 2 status

Gibraltar, one of the most prosperous territories in the world

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