GIBRALTAR Non-Resident

GIBRALTAR

NON-RESIDENT TAX FREE COMPANIES

SYNOPSIS – This self-governing British Overseas Territory located on the southern tip of Spain is world famous for its Rock, caves and defensive history. As with Jersey, Guernsey and the Isle of Man it is an English-speaking common-law jurisdiction with an excellent safe and stable regulatory environment provided by the Gibraltar Financial Services Commission. According to the World Bank, its current population is 39,329 but this is greatly increased on a daily basis due to the influx of both Spanish workers and tourists. Apart from tourism and selling tax free goods, the Territory has also developed a world-renowned reputation in international tax planning.

Population: 39,329 (2025)

Size: 6.8 sq.km

Capital: Gibraltar

Economy: The local economy mostly consists of the services sector including company formation and management. In addition to financial services shipping, tourism and online gambling licenses are all major economic contributors. On a per capita wealth basis Gibraltar is one of the wealthiest countries/territories in the world.

Taxation: Gibraltar operates a territorial tax system meaning that non-resident companies are not subject to the local corporate tax rate of 15%. In effect, despite needing to maintain and submit annual accounts and make companies house submissions like all other Gibraltar companies, they can be considered de facto Gibraltar IBC companies. On an individual level, taxation is on a worldwide basis on income from employment or self-employment if a person is ordinarily resident in Gibraltar. There is however no tax on capital income including wealth taxes, capital gains, sales or value added tax. In addition, there are special dispensations available for wealthy expatriates deciding to ordinarily reside in Gibraltar.

Confidentiality: Confidentiality levels are high provided nominee directors, secretaries and shareholders are used.

Banking: There are a number of well-known British, private and international banks operating in Gibraltar. However, the minimum deposit requirements are generally quite high (sometimes as high as £500,000.00 plus) resulting in many non-resident companies opening up accounts outside of the jurisdiction.

Synopsis: Gibraltar non-resident companies are very attractive alternatives to international business corporations (IBC’s). The reason is that although they are slightly more expensive and administratively burdensome, they nonetheless have a better reputation and are well regulated.