Gibraltar is a peninsula at the southern tip of Spain with an area of approximately 7 sq. km. It has a population of some 30,000 although a substantial number of the working population commutes daily from homes nearby in Spain. A number of Moroccan, British and Indian expatriates live in Gibraltar.

Gibraltar is a British Dependent Territory and is a Crown Colony with internal self-government. It has its own elected House of Assembly, which legislates on domestic matters. It is a common law jurisdiction based on English Common and Statue Law with variations introduced by local legislation. The final court of appeal is the British Privy Council. Gibraltar is an associate member of the European Union and enjoys special status within the Community being exempted from the Common Customs Tariff, the Common Agricultural Policy and Value Added Taxation. Despite pressure from Spain over sovereignty and the EU over “unfair taxation practices” Gibraltar remains politically stable.

Income Tax is levied on resident companies and individuals at rates between 20-50 per cent. However, in return for an annual fee, currently £225 and due on the anniversary of incorporation (there are fines for late payment) Gibraltar companies can be declared exempt from paying tax. There is also an annual filing fee of £26. Exempt companies cannot trade in Gibraltar and are subject to a range of other requirements regarding management and control. Exempt companies are under attack from organisations such as the EU and the OECD and will be outlawed after 1^st January 2006. The Gibraltar government has plans to introduce a zero rate of tax for all companies but there are doubts over whether this will be ruled legal by the EU. Such a policy may not even be financially viable as, unlike the Isle of Man whose plans have been ruled legal, Gibraltar has no VAT system with which to raise income and so it is likely that other charges and requirements will be imposed to raise income. There is no requirement to file detailed financial statements but an abbreviated balance sheet is required from most companies and all companies must keep records to reflect its financial affairs.

Exempt Companies: The main attraction of Gibraltar as a financial centre is that its Exempt Companies can be managed and controlled from within Gibraltar, in contrast with most other jurisdictions, where companies managed from within are subject to Corporation Tax. Note: These will be phased out by 31st December 2007 (2010 for existing companies) and we do not routinely offer to form these.

Non-Resident Companies: These are becoming very popular as alternatives to the once popular Irish Non-Resident companies. No annual government fee is payable and audited accounts are not required.

Gibraltar is not party to any double taxation treaties so there is therefore no exchange of information with other fiscal authorities. Gibraltar companies can be especially good for purchasing properties in Spain.

Taxation/Accounts
Neither an exempt company nor a non-resident company has a liability to tax of any kind in Gibraltar (except payment of the annual duty in the case of an exempt company, which is, in any case, included in our fees). 

INCORPORATION TIMESCALE/NAMES