Gibraltar is mythologically known as one of the Pillars of Hercules. It has long been regarded as an important military bastion due to its strategic location at the entrance to the Mediterranean. Gibraltar has been British since 1704 and has been a part of the European Union since 1973.
Gibraltar has a vibrant financial services industry which benefits from the advantages of operating in a small jurisdiction with strong international links and a solid regulatory infrastructure. The Government of Gibraltar has transposed into law all financial EU directives to date and complies with all international anti crime legislation. In the past, Gibraltar has been endorsed by the International Monetary Fund (IMF) as a jurisdiction with a robust regulatory environment in the areas of banking, insurance and anti-crime activities.
Gibraltar maintains itself at the forefront of international cooperation and is a member of the Financial Action Task Force (FATF) through Moneyval, the anti-crime monitoring body of the Council of Europe. Gibraltar remains committed to tax transparency and has implemented both FATCA and CRS legislation. The Government has signed numerous Tax Information Exchange Agreements (TIEA’s) with key countries and remains committed to continuing this trend.
In 2009, Gibraltar succeeded in joining the OECD tax information exchange white list, an important step towards shaking off its former ‘tax haven’ label.
Nevertheless, Gibraltar still has a very attractive tax regime for companies and individuals resident in Gibraltar. There is no value added tax, wealth tax, capital gains tax or inheritance tax. Companies pay 10% corporation tax and the highest income tax bracket for individuals is 28%.
Despite a robust regulatory infrastructure it is still easy to do business in Gibraltar. This is a testament to the enthusiasm, vitality and expertise of the local financial service providers who can rely on the Government and the local regulator to afford them the support and flexibility required to make ours a successful financial centre. The next few years will bring about many challenges to the jurisdiction in the shape of Brexit. The industry is already working closely and tirelessly to meet these challenges and is confident that we are well equipped to overcome them and continue to be as solid as the rock we live on.