Together with the highly reputable British Isles of Jersey, Guernsey and the Isle of Man, the crown colony of Gibraltar belongs to High Disclosure Offshore Centres which provide for greater legal certainty. It is the only British offshore centre that is part of the European Union. It is the only British offshore centre that can and will increasingly be able to provide financial institutions with passporting rights and access to the single European market for financial services.

Insurance 

There is a general consensus that the GFSC, whilst always robust, is an accessible regulator applying proportionate as well as thorough regulation, and requests for changes to a licensed insurance company’s business plan are reviewed in a timely manner. As regulation becomes ever more onerous, and the industry demands swifter decisions in a competitive business environment, the ability to be able to easily access an insurance regulator is a key factor in the choice of an insurance domicile.

Technology

Gibraltar has a rich history of exploring the far reaching potential of emerging technologies for businesses and citizens. Most recently, Gibraltar has highlighted the potential for Distributed Ledger Technology to add significant economic, social, and technological value to the jurisdiction.

This section recounts the different stages of the journey we are on. The genesis with the creation of the Crypto Currency Working Group to the development of the innovative DLT Providers Regulatory Framework and with ambitious plans to further develop our leadership in this space.

Banking

Gibraltar is a long established centre for international banking services which started in the 19th century when banks were established here to service the demands of traders and international commerce at the entrance to the Mediterranean.

Today Gibraltar-based banks, made up of a combination of large global institutions as well as specialist private and investment banks and building societies, are able to provide a breadth of modern day solutions to their clients’ needs in all areas of finance. Collectively the firms are represented by the Gibraltar Bankers Association “GBA”.

Gibraltar’s economy and inward investment is largely attributable to four main pillars, these being financial services, gaming, tourism and the shipping industry. The economy shows consistent and strong growth year-on-year. This has been, inter alia, because of Gibraltar’s ability to maintain itself at the forefront of the regulatory environment and by embedding a culture of strong corporate governance. An excellent standard of local and international education at all levels ensures high standards of professional ability. 

Private Clients

Gibraltar is active in the private client market and is an attractive destination for the high net worth individual in terms of lifestyle and tax management. It is a cornerstone of the finance centres continued success. Firms in Gibraltar are able to offer a wide variety of tailored solutions catering for complex personal requirements. Included in these is a tax residence programme for high net worth individuals who relocate to Gibraltar, capping their income tax charge to a maximum of approximately £28,000 High earning professionals possessing specialist skills may also benefit from a reduced income tax charge under the HEPSS scheme.

Individuals who may wish to manage their affairs by way of a transparent and compliant trust, or company arrangement, also have a wide choice and excellent advice available via advisers in Gibraltar. Gibraltar provides other benefits including no capital gains tax and no inheritance tax.

There are 11 banks and building societies currently licensed in Gibraltar, employing over 500 people. They range from large global institutions to specialist private and investment banks and building societies and include the Gibraltar International Bank which opened it’s doors to business in April 2015. They provide a full breadth of solutions to their clients’ needs in all areas of banking

Pensions

Gibraltar’s pensions sector provides pension and savings plans for local pensions, imported pensions (“QROPS & QNUPS”) and for individuals working outside of Gibraltar that require a regulated pension plan in a domicile where both the pension administrators and trustees are regulated.  

The Government of Gibraltar places great importance on the regulation of the pensions industry and has worked closely with both the Gibraltar Financial Services Commission and the Gibraltar Association of Pension Fund Administrators to introduce new legislation and regulations in recent years to ensure that a strong and robust regulatory environment is maintained across all pension sectors.

Funds

Gibraltar is a popular jurisdiction for the establishment of investment funds and their managers, offering robust fund legislation, favourable tax advantages, efficient regulation, the flexibility of a small jurisdiction, quality infrastructure and the security of high regulatory standards which meet UK and EU requirements. Gibraltar’s funds and investments infrastructure has developed over the past decade.

During this time Gibraltar has become home to a broad spectrum of domestic and international companies, including banks, fund administrators, accountants, investment managers, fund managers, stock brokers, company managers, auditors and lawyers who comprise Gibraltar’s funds service industry. Gibraltar has an impressive pool of experienced service providers and offers political and economic stability on the European continent.

Fund Managers & Asset Managers

Gibraltar joined the EU with the UK in 1973 and consequently has transposed EU Directives into Gibraltar law. This has included:

• the alternative investment fund managers directive (AIFMD);
• the undertakings for collective investment in transferable securities directives (UCITS Directive); and
• the markets in financial instruments directives (MiFID).
• By virtue of Gibraltar forming part of the EU, Gibraltar fund and asset managers are able to passport across the European Union.

Fund and asset managers are taxed at the corporate rate of tax of 10% of profits. In addition, senior executives or managers who possess skills that are necessary to promote and sustain activity of particular economic value to Gibraltar or the firm, can obtain a special tax status known as High Executive Possessing Special Skills (HEPSS). This allows the individual’s personal tax liability to be capped at approximately £30,000 if the individual earns over £120,000 per annum.

The Gibraltar funds offering

Gibraltar’s fund products include both domestic regimes and regimes driven by AIFMD and UCITS and they can be managed by a third-party manager or self-managed by its board of directors:

Private Schemes;

• Experienced investor funds (EIFs);
• Retail schemes;
• Gibraltar qualified alternative investment funds (Gibraltar QAIF); and
• UCITS schemes.
• Gibraltar funds can be established using a variety of vehicles, this includes partnerships, companies and protected cell companies.

Private Schemes

A private scheme is a collective investment scheme that is not listed on a stock exchange and is not authorised to have more than 50 investors. A private scheme does not require authorisation by the GFSC and is considered unregulated.

Experienced Investor Funds

An EIF is a regulated collective investment scheme exclusively for investment by experienced investors. EIFs are designed to invest in a wide range of traditional and alternative asset classes, most recently this has included cryptocurrency and blockchain related projects. There are no restrictions in law as to the eligible asset classes for an EIF, and there are no diversification requirements within the relevant legislation.

One of the attractions of Gibraltar as a fund domicile is that no regulatory approval is required before an EIF can begin to raise capital and commence with its investment activities. Gibraltar is a unique jurisdiction on the European continent where an EIF may be launched based on a legal opinion that confirms the EIF has met all legal and structural requirements for its operations, and provided that the fund’s documentation is submitted to the regulator within ten business days of launch. The majority of EIFs make use of this preferred route, however, alternative or exotic fund structures and strategies are generally discussed with the regulator ahead of launch.

The key features of a Gibraltar Company Registration are:

• Gibraltar has a very good reputation and is a stable jurisdiction
• There is no VAT in Gibraltar – companies are VAT Exempt
• A Gibraltar company registration is completed remotely, no visits are required
• Having a director and shareholder who is resident in Gibraltar is not a requirement for a Gibraltar company formation 
• There is no minimum capital requirement
• A minimum of one director, one secretary and one shareholder must be appointed. A sole director cannot be appointed as sole secretary of the same company, however, if the company has two directors, one of them can be appointed as secretary as well

Together with the highly reputable British Isles of Jersey, Guernsey and the Isle of Man, the crown colony of Gibraltar belongs to High Disclosure Offshore Centres which provide for greater legal certainty. It is the only British offshore centre that is part of the European Union. It is the only British offshore centre that can and will increasingly be able to provide financial institutions with passporting rights and access to the single European market for financial services.

A number of factors make Gibraltar attractive for offshore business conduct; good geographical location and bilingual (English and Spanish) territory; cost effectiveness and attractive fiscal regime for offshore investors; excellent reputation, stable government and special status within the European Union; excellent infrastructure and communications; favourable tax status for offshore banks; no exchange controls.

Gibraltar also has an attractive trust regime. Trusts created by non-residents that generate overseas income are exempt from Gibraltar income tax.