A focus on Gibraltar Residency

02 Dec 2022

Gibraltar boasts an excellent reputation way beyond its borders. This British Overseas Territory is often chosen by high-net-worth individuals, entrepreneurs and companies looking to relocate abroad. Here are some of the benefits of relocating to Gibraltar.

UK-based Legal system and regulatory environment

Gibraltar’s legal system is based on England's common law and statute law. In 1962 the English Law (Application) Ordinance was passed, declaring the extent to which English law is in force in Gibraltar.

The Financial Services Commission (FSC) is the statutory body regulating Gibraltar's financial services industry. The FSC is required by statute to match the UK’s robust standards.  

In January 2018, Gibraltar became the very first jurisdiction globally to introduce legislation around Distributed-Ledger-Technology (DLT), and has since asserted its position as a leading blockchain and virtual assets hub.

Low tax jurisdiction

Gibraltar has a low tax regime and multiple Information Exchange Agreements, making it a reputable jurisdiction. Individuals and companies pay income tax on local earnings but not on any foreign income.

Gibraltar’s corporate tax rate is 12.5% on profits that accrue or derive in Gibraltar. A company is considered resident if its administration and operation is controlled from inside Gibraltar. In addition to the low base rate, there are many other tax advantages to relocating to or setting up a new business in Gibraltar. Residents of Gibraltar pay no:

  • Inheritance tax
  • Gift tax
  • Capital Gains tax
  • Wealth taxes
  • Tax on interest income or income derived from listed securities.

 

Self-government and a stable economy

Through its constitution, Gibraltar enjoys self-governance. It has its own Parliament and democratically-elected government, which sits for a four-year period.

Gibraltar’s stable economy has adapted and diversified over the last three decades with its stable political environment. Today, its economy is driven by an established financial and professional services industry and strong maritime, gaming and tourism sectors.

Increasingly, Gibraltar’s cutting-edge telecoms infrastructure and world-first DLT regulations framework are making Gibraltar an attractive base for companies operating within new technology spaces such as blockchain, fintech and insurtech.

 

Excellent quality of life

Gibraltar’s year-round sunshine make it a good choice if you enjoy outdoor activities like going to the beach, hikes and dining al-fresco. English is the official language spoken here and you can expect more familiarities with the UK’s education, legal and healthcare systems.

Gibraltar’s 34,000-strong population reflects the multi-faith, multicultural communities you would expect from larger cities, making it an enriching, diverse place to call home. Its diverse culinary scene reflects its history of being one of the Mediterranean’s most important trading posts – you can eat proper British fish and chips one night, Moroccan tagine the next and Indian tapas the next.

There are many ways to travel in and out of Gibraltar. It shares a land border with Spain, sea connections with Morocco and its own airport that boasts regular direct flights to a number of cities in the UK.

Aidan Plows
Associate, Barrister-at-Law

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