Whether you represent a company looking for a tax efficient investment location or an international business seeking a strategic UK presence, Gibraltar offers a range of features and benefits for establishing a corporate entity.
A self-governing UK Overseas Territory located at the southern tip of the Iberian Peninsula, Gibraltar has transformed itself into a fully compliant financial services centre, specialising in insurance, shipping, asset management, gaming, distributed ledger technology (DLT) and FinTech.
It offers an environment that is dedicated to 'ease of doing business', featuring a favourable tax environment, a common law legal system, competitive operating costs, a productive, flexible and highly trained workforce, and a well-developed infrastructure with world-class support services.
Here's why Gibraltar could be the ideal location to set up your company:
- International Businesses – Gibraltar's strategic location at the crossroads of Europe and Africa, together with its special relationship with the UK, makes it an attractive gateway for international businesses aiming to tap into these markets. For EU entities that have lost their right to 'passport' into the UK, a new Gibraltar subsidiary offers continued to access the UK market. For non-EU entities, a new Gibraltar subsidiary offers access to the UK market but within a more favourable tax environment and with more competitive operating costs.
- Financial Services and Online Gaming Companies: Gibraltar is renowned for its well-established financial services sector and has also developed into the world's primary hub for online gaming gambling. The jurisdiction has a robust regulatory framework that fosters stability and credibility, making it an ideal location for businesses in these industries.
- Distributed Ledger Technology – Launched in 2018, Gibraltar's Distributed Ledger Technology (DLT) Regulatory Framework was one of the first pieces of legislation worldwide to cater specifically to DLT. It has created an efficient and secure regulatory environment for companies utilising DLT and has positioned Gibraltar as a jurisdiction that encourages innovation.
- Tax Efficiency: Gibraltar is a 'low tax' rather than a 'no tax' jurisdiction. It offers a highly competitive corporate tax rate, with some specific tax advantages for qualifying companies, particularly tbose engaged in international trade or financial services. Gibraltar does not levy withholding tax on dividends, interest, royalties or technical service fees, and there is no capital gains tax.
- Asset Holding Companies: In addition to the attractive corporation tax rate, Gibraltar has no inheritance tax, no capital gains tax, no VAT, and no withholding tax. Together with its stability and legal system, this has made it a favourite jurisdiction for asset holding companies and intellectual property holding companies, for individuals or businesses with international investments.
- World-class communications – Gibraltar's infrastructure, including communications and IT, is of high quality and resilience. Many blue-chip companies have been drawn to Gibraltar, allowing it to become a global leader in the online gaming market.
- High-Net-Worth Individuals: Gibraltar offers special residency regimes that are specifically designed to attract high-net-worth individuals (Category 2) and High Executives Possessing Specialist Skills (HEPSS). Together with the absence of wealth, capital gains and inheritance taxes, these make Gibraltar a very attractive home for entrepreneurs, for retirees and for suitably qualified individuals and their dependants who wish to enjoy the Mediterranean climate and lifestyle while managing their wealth more effectively.
- Shipping Companies: Gibraltar is a highly rated British Category One Red Ensign Register, that is also listed on the 'Paris' whitelist on Port State Control and qualifies under the US Coastguard 'Qualship 21' programme. The Gibraltar Maritime Administration (GMA) manages both the ship and yacht registers that benefit from a comprehensive framework of maritime legislation rooted in English Common Law, complemented by an exceptional legal and fiscal environment. These advantages are accessible to owners worldwide.
- Professional Service Providers: Gibraltar offers a huge range of professional service providers including lawyers, accountants, auditors, banks, e-money institutions, corporate service providers, professional trustees, payment services providers, fund managers, insurers, and investment firms. Regulation, primarily provided by the Gibraltar Financial Services Commission (GFSC), is pragmatic and principles-based when dealing with business activities, products and models.
- Entrepreneurs and Start-ups: Gibraltar provides a supportive environment for entrepreneurs and start-ups, offering a business-friendly approach, access to a well-regulated financial ecosystem, various financial incentives, reliable infrastructure and excellent opportunities for collaboration and networking.
It is essential for individuals and businesses to conduct thorough research and seek professional advice before deciding to set up a company in Gibraltar or any other jurisdiction. Legal, tax and financial considerations should be carefully evaluated.
How Sovereign can help
With over 35 years of experience in the Gibraltar market, the Sovereign Group offers a first-class suite of corporate and private client services. We can assist you to select the most effective and efficient legal entity for your business and will then form and register that entity in Gibraltar in line with local laws and regulations.
As well as providing the necessary expertise in administering and managing companies, we offer the support to help businesses to maximise opportunities and achieve long-term sustainability, from full back-office solutions to assistance with tax and regulatory compliance.
This includes bookkeeping and accounting, payroll and HR, insurance, banking introductions, pensions, intellectual property protection, obtaining local licences and permits, executive relocation and specialist tax advice.
Our Private Client services assist families and entrepreneurs around the world to structure their assets to support personal, family, commercial and charitable interests. We can advise on all aspects of the design and implementation of structures from a broad range of vehicles in Gibraltar and elsewhere, including trusts, companies, partnerships and foundations, which can be tailored to meet a client's diverse personal and business needs.
HNWIs and their families can benefit from substantial tax advantages if they move their residence to Gibraltar, which also serves an attractive base for the registration of commercial and pleasure yachts.
Sovereign has also established Sovereign Wealth in Gibraltar as a stand-alone, fully regulated asset manager to provide services to Sovereign Group clients. Gibraltar-based Sovereign Marine Services (SMS) also provides a wide range of marine and professional services to yacht owners, yacht managers and yacht brokers worldwide.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
