Gibraltar


ESSENTIAL FACTS

LOCATION: 36 08 N, 5 21 W
Gibraltar is on he southernmost tip of Spain; the Strait of Gibraltar between Gibraltar and Morocco links the North Atlantic Ocean and the Mediterranean Sea.

POPULATION: 27,967

CURRENCY: Gibraltar pound (GIP). This is equal to the British Pound (GBP).

LANGUAGE: English (official), Spanish, Italian, Portuguese

CLIMATE: Gibraltar has a Mediterranean climate, with mild winters and warm summers.

EDUCATION: Over 80 percent of the population has been educated.

PUBLIC HOLIDAYS: National Day, 10 September (1967)

HISTORY AND GOVERNMENT

HISTORY
Because of its geographic location as the gateway to the Mediterranean, Gibraltar has been of particular importance to both Spain and Great Britain, the latter of which gained possession of it in 1713. To this day, Spain and Great Britain negotiate over the dependency although its citizens in Gibraltar have spoken loudly and clearly of their desire to stay associated with Great Britain. Spain grants airspace, customs fast tracking and communications reciprocity; England allows employment benefits to Spanish citizens working in Gibraltar.

POLITICAL SYSTEM
Being a UK dependency, the chief of state is the Queen. IN Gibraltar she is represented by a Governor. The head of government is called the Chief Minister, and the cabinet is called the Council of Ministers. The legislature is a unicameral Parliament.

JUDICIAL SYSTEM
The judicial branch of the Gibraltar government consists of the Supreme Court and the Court of Appeal.

COMMERCE AND TRADE

COMMERCIAL ACTIVITY
Agriculture: None
Industry: Tourism, banking and finance, ship repairing, tobacco

TRADE PRACTICES
Exports: Petroleum, manufactured goods to the UK, Spain, Germany, Turkmenistan, Switzerland, Italy
Imports: Fuels, manufactured goods, and foodstuffs from Spain, Russia, Italy, UK, France, Netherlands, US

BANKING, FINANCE AND INVESTMENT

FINANCIAL FACTS
Gibraltar once again benefits from their strategic geographic postion, with revenue being derived from shipping, trading, offshore banking, and as a convenient destination for international meetings, exhibitions and conferences. Tourism has been hitting all-time highs thanks to passenger cruises adding Gibraltar to their port lists.

Fiscal year: 1 July - 30 June

FOREIGN INVESTMENT
With the Gibraltar government eager to keep unemployment at their current 3 percent low, most incentives for foreign investment are tied into creating employment for the population. Besides contributing to the economy, offshore companies are expected to offer at least two residential units, assets, employment and a new industry to Gibraltar.

REAL ESTATE
The Gibraltar government gives significant tax advantages to real estate purchases by a Gibraltar-based company. Real estate purchases also allow the buyer to receive instant Gibraltar residency.

LABOR

LABOR LAWS
A company Payroll Tax is paid by employers each year for every employee on their books.

IMMIGRATION

EMPLOYMENT
Gibraltarians take precedence in employment considerations; if there are no qualified applicants, a non-resident can receive a work permit and be hired for the position. EU residents are never denied work permits within Gibraltar.

RESIDENCE
Gibraltar considers individuals as residents once they are in Gibraltar for more than 183 days during any fiscal year. Also, non-residents who purchase property in Gibraltar receive instant residency.

BUSINESS

BUSINESS ENTITIES
Offshore companies incorporated in Gibraltar follow one of the following frameworks: Qualifying Company, Gibraltar 1992 Company, Non-resident Company, or Exempt Private Company.

A Non-resident Company’s income earned outside of Gibraltar is tax-exempt. Qualifying Companies set their own rate of taxation, which can be as low as 0 percent and as high as 35 percent. Gibraltar 1992 Companies are used for those entities that see to move dividends through Gibraltar, thus paying only 1 percent withholding tax due to the way the tax laws are structured.

Exempt private companies are the most popular offshore business entity, as there is no income tax, withholding tax, stamp duty and other taxes for at least 25 years (depending on approval from the Financial and Development Secretary).

TRUSTS
Both residents and non-residents of Gibraltar can establish a Gibraltar Trust, but the beneficiaries must be foreigners who are non-resident in Gibraltar. If the assets are in a Gibraltar bank, the interest is tax-exempt; all other income earned outside of Gibraltar is also tax-exempt.

TAXATION

PERSONAL TAXATION
Personal taxes are not levied on those making less than GIP7,000 a year. Other taxation is structured depending on whether the person is considered a “high net worth” individual, a resident, an expatriate, etc. Non-residents are taxed only on income earned in Gibraltar.

CORPORATE TAXATION
All Gibraltar-based companies pay a Business Property Occupation Tax; it is no less than GIP150 and no more than GIP300. Financial services entities pay no less than 8 percent and no more than 15 percent on profits.

A Non-resident Company’s income earned outside of Gibraltar is tax-exempt. Qualifying Companies set their own rate of taxation, which can be as low as 0 percent and as high as 35 percent. Gibraltar 1992 Companies are used for those entities that see to move dividends through Gibraltar, thus paying only 1 percent withholding tax due to the way the tax laws are structured.