The main features of the Gibraltar Tax system are as follows - No wealth tax, no inheritance tax, no capital gains tax and, in particular, no VAT. As a specialist, EU finance centre with an offshore capability, Gibraltar offers significant opportunities to a range of clients, corporate and personal, to take full advantage of the range of tax planning structures available.
Whilst the notion of tax and wealth planning has come under fire in recent years and many of the quintessential strategies applied in finance centres around the world fall foul of changing political and social standards, Gibraltar has emerged, by virtue of its modernised tax environment, as a centre for efficient yet OECD and EU compliant tax structuring.
Our expertise is second to none - we have assisted in a wide variety of tax planning and structuring scenarios, involving private individuals, business and charitable organisations to achieve maximum efficiency.
Private Client & Family Office
As a trust jurisdiction, Gibraltar offers many of the advantages of such a system whilst being in the EU, but remaining outside the Customs Union. Gibraltar is, and has been for many years, the ideal location for the structuring of private wealth of relocating or retiring high net worth individuals. Our comprehensive, common-law legal system based on that of England & Wales, provides other tools which are being used by clients in their structuring.
Funds & Protected Cell Companies
The establishment of funds-based, family wealth management and preservation solutions is a strategy that more and more clients are turning to post the crash of 2008.
Whether it's in the shape of a protected cell company, which allows, by statute, the effective ring-fencing of assets and investment classes/strategies, or the use of a private fund, families are taking control of their wealth using tax structures which are flexible enough for the increasingly complex modern high net worth family dynamic, yet robust enough to effectively protect the wealth and maximise tax efficiency.
We are pragmatic and practical about the advice we give - in order for tax planning to remain effective today, it is critical that business or personal affairs are conducted strictly in accordance with plans both made and stated.
International Tax Planning
Gibraltar's location in and membership of the EU represents a sizable tax opportunity for global business. Benefiting from the application of most EU legislation, using Gibraltar can mean tax neutral tax planning and important savings. Gibraltar offers some of the best EU-based solutions, unlike many of its competitors, bringing savings not just in tax, but in the cost of setting up and maintaining/administering such tax structures.
Gibraltar has a flat rate of 10% corporate tax payable across the board. Add to that the fact that no capital gains tax nor tax on 'passive' income is payable, and it's no surprise to see that Gibraltar's appeal continues to grow - membership of the EU means, e.g., that payment service providers can establish operations in Gibraltar, passport their services into the whole of the single market whilst enjoying the many advantages Gibraltar enjoys, not least the lack of VAT.
For private clients, the lack of capital gains, wealth or
inheritance taxes as well as the lack of payment of tax on passive
income' i.e.' dividend and pension income to name a couple,
allied to specialist tax regimes such as the
Category 2 individual status, means that there are many many
reasons to consider tax planning with Gibraltar in mind - not to
mention the 300 days of sunshine a year.
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.