The Rock's unique location on the Spanish mainland allows its four and a half million visitors a year easy access to the Spanish and Portuguese tourist resorts of the Costa del Sol and Algarve. For those with an interest in golf Gibraltar provides an ideal set off point being within twenty-five minutes of several of Europe's major golf courses including the 1997 venue for the Ryder Cup, "Valderrama".
Gibraltar has been a Crown Colony of the United Kingdom since 1713, enjoys political stability, and its sovereignty is assured by the Gibraltar Constitution in which Britain undertakes never to enter into arrangements which would place the people of Gibraltar under the sovereignty of another state against their freely and democratically expressed wishes. Defence, foreign policy and internal security remain the responsibility of the United Kingdom who appoint the Governor as the representative of the Crown in Gibraltar.
In all other matters however, Gibraltar is self-governing. Laws, known as Ordinances, are passed in the Gibraltar House of Assembly, a freely and democratically elected Assembly consisting of fifteen elected members and two nominated members. It enacts laws independently of the United Kingdom and maintains an independent tax status (a freedom which has greatly helped its development as a financial centre). The legal system is based on the common law and statute law of England, with the ultimate court of appeal being the Privy Council, in effect the UK House of Lords.
Gibraltar is a member of the European Union unlike Jersey, Guernsey and the Isle of Man which only have associated status. It is a dependant territory of the United Kingdom and has full access to the Single Market by virtue of the United Kingdom's membership under Article 227 (4) of the Treaty of Rome and the UK Act of Accession. However, under Article 28 of the 1972 UK Accession Treaty the Common Customs Tariff, the Common Agricultural Policy and the harmonisation of turnover taxes in particular value added tax, do not apply in Gibraltar.
The strategic value of the Rock of Gibraltar has meant that the Rock was developed as a military fortress. A Moorish Castle and surrounding fortifications dating back to 1292 dominate the entrance to the old town. The town itself is encircled by bastions and defensive walls that climb high up into the Rock. Up until the early 1950's the role of the community was traditionally to furnish the garrison with supplies.
The end of Gibraltar's military era has coincided with a boom in business activities in which financial services have taken the lead in providing the new pillar of strength for Gibraltar.
The absence of any exchange control restrictions, together with exemptions and concessions from domestic taxes for certain categories of companies, non-resident individuals who do not work in Gibraltar and trusts administered for non-residents has created many opportunities for offshore investors and led to substantial growth in the financial services sector.
A wide range of international banks provide both domestic and off-shore banking facilities on the Rock. 1992 saw the implementation by the House of Assembly of the new banking ordinance which brings Gibraltar's banking legislation in line with current EU banking directives. The ordinance is administered by the Commissioner of Banking with the day-to-day supervision being carried out by the Banking Supervisor.
The conduct of insurance business is regulated by the Insurance Companies Ordinance 1987 and its subsidiary legislation. The framework laid out within this ordinance is fully consistent with EU life and non-life directives. Insurance business is licensed and controlled by the Commissioner of Insurance who is charged with the administration of the ordinance and its regulations.
The expansion of Gibraltar's finance sector has seen major infrastructural works allowing Gibraltar to boast up-to-date sophisticated digital communications, its own international airport and modern office and residential accommodation at very reasonable prices.
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.
For further information about Gibraltar, please contact:
Bruno G R Callaghan Managing Director Willis Corroon Management (Gibraltar) Limited Suite 18, Portland House Glacis Road Gibraltar Telephone No: (350) 51801 Facsimile No: (350) 51802or visit the Willis Coroon web site, at Click Contact Link
For further information on Captive Insurance in Europe enter a text search "Willis Corroon" and "Business Monitor".
Business briefing Publishing Ltd, 1997 Tel +44 (0) 171 820 7733
