Why is Gibraltar an Attractive Country for Investors?

Updated on Sunday 12th July 2020

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Based on a recent report issued by the Organization for Economic Co-operation and Development (OECD), Gibraltar was the territory registering the highest growth in the last 20 years among all OECD countries. Gibraltar's Gross Domestic Product (GDP) has increased with approximately 35% in the last five years and it now ranks in the top 20 GDP growth on a global scale. Among the factors generating economic growth, the OECD announced an investment-oriented environment and the promotion of quality investment rather than quantity investment were at the base of Gibraltar’s transformation into an international business hub. 

Our Gibraltar company formation consultants can assist you in investing in Gibraltar.

What are the main advantages of investing in Gibraltar?

The first advantage Gibraltar offers to foreign investors is one of the lowest corporate taxes in Europe. With a 10% tax rate applied to companies, Gibraltar is now one of the most appealing countries in the European Union. Also, during the last few years, some of Gibraltar industries have developed, which made the British territory a suitable location for foreign businessmen to set up companies in.

Considering Gibraltar continued to grow while the other European countries faced difficulties during the economic crisis, foreign enterprisers may be assured they will benefit from a strong local market. The Gibraltar Government is now exploring new options for providing new investment opportunities for enterprisers in European, Asian and South American countries.

What are the most attractive investment industries in Gibraltar?

During the last few years, Gibraltar emerged as an important financial center in the region and started attracting high net worth individuals interested in the financial sector. The rise of this industry has generated the growth of other industries such as online gaming, tourism, shipping and even the real estate market has known a great expansion during the last 3 years.

Foreign investors opening companies in any of these industries can now benefit from corporate tax cuts for the company’s first year of activity and many other development incentives. The recent amendment of the Companies Law is also very helpful, as various registration requirements have been abolished.

Our company registration agents in Gibraltar can offer information on the new Companies Act 2014  and the procedures for investing in Gibraltar.

Gibraltar has a special status in the European Union

Gibraltar is quite unique due to its special status within the European Union. While its Commercial Code has its roots in UK Companies Law, it also contains the most important EU Directives in order to provide the most advantageous company registration facilities. Its access to the European Economic Area provides a large marketplace for foreign investors setting up companies in Gibraltar. Its geographical position also offers access to emerging markets in Europe and Africa.

Another key factor leading to Gibraltar’s development is its workforce. With specialists coming from all over the world to work in Gibraltar companies, the small territory provides now one of the largest talent pools in Europe.

The video below offer information about the main reasons for investing in Gibraltar:

Gibraltar has a thriving economy, as the Government invested heavily in several industries during the last few years. The number of foreign investors setting up companies in Gibraltar has also risen which has made it possible for completely different industries to grow. At the moment the most attractive investment fields to do business in Gibraltar are:
 

  • the e-gaming industry;
  • the investment funds sector;
  • the services industry;
  • the tourism sector.

Tourism has also led to the development of adjacent segments, such as retail and shipping.

The e-gaming field in Gibraltar

Perhaps Gibraltar is currently most famous for its online gaming industry which represents an important percentage of the small territory’s Gross Domestic Product (GDP). With an impeccable internet and communications infrastructure, Gibraltar will ensure the success of any company in the e-gaming industry. The taxation system and the regulatory framework also contribute to online gambling becoming one of the most attractive industries in Gibraltar.

Why invest in tourism in Gibraltar?

With a magnificent view and its proximity to Spain, Gibraltar has become one of the most sought touristic destinations in Europe in the last decade, which has transformed tourism into one of the most profitable industries on the Rock. Investors have taken this opportunity of setting up companies in the retail segment, in order to transform the small territory into an even more attractive destination.

The Gibraltar investment fund sector

Not many people are aware of the possibilities investment funds in Gibraltar offer. The following incentives have transformed the investment funds sector into one of the most attractive fields in Gibraltar:

  • the 10% tax rate on corporate profits;
  • the lack of VAT;
  • the swift procedure for setting up investment funds;
  • the attractive tax rates applied to specialists and skilled individuals.

Our Gibraltar company formation agents can offer more information on the potential of the investment industry.

The services sector in Gibraltar

One of the best investment industries in Gibraltar at the moment is the services one. With a highly skilled workforce, the Rock offers some of the best services in Europe whether we’re talking about the financial sector or other smaller industries. Thanks to the advantageous labor conditions, Gibraltar manages to attract specialized individuals from all over the world which has transformed the territory into the home of the most “internationalized” workforce on the continent.


The investment funds industry started to develop in 2016

Last year was an important year for the investment funds sector in Gibraltar, as the Financial Services Act was amended in order to make room for another type of investment fund: the Experienced Investor Fund. This has attracted the attention of various professional investors who have turned away from experienced countries like Luxembourg and headed towards Gibraltar. 

For details about the advantageous provisions for company incorporation within the new Company Act, you may contact our company incorporation agents in Gibraltar.
 

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,
• dividends,
• royalties.

Gibraltar’s credit ratings

With a low Country Risk Tier (CRT) issued by AMB, Gibraltar is currently one of the safest countries to invest in. With a small economy and a Gross Domestic Product (GDP) of over 2 billion USD, AMB assess that the safest investments are to be made in the tourism, financial services, online gaming and shipping industries. Also, being a member of the European Economic Area (EEA), the trade of goods and services is free of charge.

Another agency rating Gibraltar was Standard and Poor’s which provided a BB- rating for corporate investments last year. According to the agency, the recovery rating for Gibraltar over the next years is 3. With a BB- credit rating and a stable outlook, Standard and Poor’s predicts Gibraltar to have a “consistent” growth.

The last rating for Gibraltar issued by Moody’s was in 2013, when the agency assessed the Rock with a B2 rating, after the B1 rating issued in 2011.

Our local agents may also provide you customized company registration and accounting services.

 

 

Meet us in Gibraltar

Call us now at (+44) 203-287 0408 to set up an appointment with our lawyers who are handling company formation procedures in Gibraltar. Alternatively you can incorporate your company without traveling to Gibraltar.

As a our client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Gibraltar.

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