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Why incorporate a company in Gibraltar?

Phil Cartwright 15 November 2022 2 min read
Why incorporate a company in Gibraltar?

Gibraltar-rock-and-ape

Gibraltar is an excellent location for company formation. Geographically, Gibraltar is located at the southern tip of the Iberian Peninsula and has a population of just over 33,000. Gibraltar is a British Overseas Territory but self-governed, operates common law legal system mirrored on the UK and 2.5 hours from the UK via aeroplane. There is an hour difference in time from the UK which means communication can be maintained easily with the rest of Europe. Gibraltar has a corporation tax rate of 12.5% which ensures it is attractive to set up a business from. Gibraltar also has other advantages such as no capital gains tax, no inheritance tax and no VAT. Gibraltar’s main industries are tourism, financial services, online gambling and bunkering.

By Phil Cartwright Head of Business Development

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Frequently Asked Questions

How does Gibraltar’s tax regime differ from other jurisdictions for company formation?

Gibraltar offers a corporation tax rate of 12.5%, which is lower than many European jurisdictions. In addition, there is no capital gains tax, no inheritance tax, and no VAT, making it an attractive location for company incorporation.

What are the main industries that benefit from incorporating in Gibraltar?

The key industries in Gibraltar include tourism, financial services, online gambling, and bunkering. These sectors take advantage of the territory’s regulatory environment and tax structure.

How does Gibraltar’s legal system impact company operations?

Gibraltar operates a common law legal system based on the UK model, providing a familiar legal environment for businesses accustomed to British legal principles. This may reduce legal uncertainty for companies with UK or international ties.

What geographic and logistical factors support business in Gibraltar?

Gibraltar is located at the southern tip of the Iberian Peninsula, close to major European markets and approximately 2.5 hours by air from the UK. There is only a one-hour time difference with the UK, facilitating communication with the rest of Europe.

Are there inheritance or capital gains taxes applicable to companies in Gibraltar?

Companies in Gibraltar are not subject to inheritance tax or capital gains tax. This policy enhances the territory's appeal for international business structuring and estate planning purposes.

PC

Written by

Head of Business Development

Experienced and motivated individual with a demonstrated history of working in the financial services industry in Gibraltar for 26 years. I structure high net worth individuals' wealth using a vast array of worldwide contacts in addition to managing their trusts, companies, funds, QROPS and QNUPS from Gibraltar. I have been involved in many property holding structures working with many different tax advisors throughout my career. I specialise in setting up Gibraltar businesses and provide advice on relocation and residency in Gibraltar.

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