Gibraltar

Gibraltar Non-Resident Companies

Tax Have Jurisdiction

A non-resident company can be defined as a company which is incorporated in Gibraltar, owned by non-residents of Gibraltar and managed and controlled by directors who reside and hold board meetings outside Gibraltar. If such directors are located in a tax free haven then a non-resident Gibraltar company will be subject to a ZERO corporate tax rate.

A non-resident company pays Gibraltar corporation tax only on its income derived from or remitted to Gibraltar. In general, non-resident companies are similar to 'international business corporations' (IBC) and are generally used for 'holding' or low level consultancy purposes so full management services are not common, especially as Gibraltar has limited tax treaty protection. However, virtually all non-resident companies avail of our administration services from a convenient tax free location or sub-contracted out provider to ensure that corporate activities are separate from those of the beneficial owner.

Synopsis

Strategically important, Gibraltar was reluctantly ceded to Great Britain by Spain in the 1713 Treaty of Utrecht; the British garrison was formally declared a colony in 1830. In a referendum held in 1967, Gibraltarians voted overwhelmingly to remain British (Source CIA Factbook). Gibraltar is the only remaining colony in mainland Europe and still a source of dispute between Spain and the United Kingdom.

Star Ratings

Corporate registration efficiency

4

Cost

5

Confidentiality

4

Local Banking facilities

4

Legal system

5

Political stability

4

Reputation

3

gibraltar

Location

Gibraltar is located in the straits of Gibraltar, bordered by Spain to the north and by Morocco to the south. It has long been a key strategic location as it is the entry point into the Mediterranean Sea.

Relationship with the UK

Gibraltar is a full British colony with an autonomous local government – The local population mostly of Moroccan, Jewish, Indian and Spanish stock are fiercely proud of being British. English and Spanish are the two key local languages whilst Sterling is the local currency.

Treatment of Trusts in Gibraltar

Gibraltar Taxation of Trusts

Trust income is exempt from tax under the Income Tax (Allowances, Deductions and Exemptions) Rules 1992 provided:

  • the trust is created for and on behalf of a non-resident person; and
  • the income either accrues or is derived outside Gibraltar, or in the case of income received by a trust would, if it had been received directly by the beneficiary, not be liable to tax under the Income Tax Ordinance; and
  • save where a trust was created before 1/7/83, the terms of the trust expressly exclude residents of Gibraltar (as beneficiaries)

Vessel Registration

Gibraltar is one of the major vessel registration areas in Europe with competitive registration fees and local management facilities. All Gibraltar registered vessels have the right to fly the British 'Red Ensign' Flag but the fact that Gibraltar is not part of the EU VAT system can cause problems in certain circumstances. For more information please discuss with a SCF Consultant

Benefits

  • Non-resident companies are not subject to local corporate taxes
  • Normally tax free as non-resident companies are generally managed from tax free locations
  • No capital gains or inheritance taxes
  • English speaking
  • No VAT
  • Excellent communications
  • Favourable treatment of overhead trusts
  • Common law jurisdictions
  • It is a common law jurisdiction
  • Company law based on 1929 UK Companies Acts
  • A full member of the EU since 1973
  • All major UK banks represented
  • Major vessel registration 'flag of convenience' area
  • Good confidentiality provisions
  • Open border with Spain for many years

Double Taxation Network Treaty

Gibraltar does not have a double taxation treaty network save for a limited treaty with the United Kingdom

Administration & Accountancy Services

Managed Companies

SCF Accountancy & Law can provide Gibraltar companies either in a resident or non-resident format. In the case of resident 10% tax companies these generally do avail of our management services as such are required to show that full and proper management and control takes place in Gibraltar

Set-Up & Annual Maintenance Fees

Please see the separate Gibraltar Managed Company Quotation Leaflet

The Ownership of Gibraltar Companies

'Overhead' Discretionary Trusts or Private Interest Foundations:

For tax planning reasons, normally pertaining to anti-avoidance provisions in a beneficial owner's 'home' country or place of fiscal residence, and/or because of a need to 'ring fence' assets many clients owning a Gibraltar company (resident or non-resident) select to have it owned not by themselves but by an overhead discretionary trust or private interest foundation (PIF) normally located in a jurisdiction such as Panama or Liechtenstein (locally known as a Stiftung)

For more information on discretionary trusts and/or private interest foundations please refer to the separate information leaflets.