In accordance with the Companies (Taxation and Concessions) Ordinance, companies formed in Gibraltar may apply for exemption from Gibraltar taxes under a special 'exempt' status provided:-

  • The company has a minimum issued capital of o100 all of which has to be issued.
  • No Gibraltarian or resident of Gibraltar own shares in the company either directly or beneficially.
  • The company does not carry on business or trade with Gibraltarians or residents of Gibraltar (except other exempt companies).
  • No beneficial ownership of the shares of the company are transferred without the approval of the Financial & Development Secretary. Nominee shareholders may be used.
  • A minimum of one director is appointed who may reside in or outside Gibraltar and who may be a body corporate. Board and shareholder meetings, including A.G.M.s, may be held anywhere.

The exempt status runs for 25 years from the date granted providing the fixed annual fee (presently o225) is paid and the company continues to comply with the legislative requirements. Application for exempt status is made to the Financial and Development Secretary accompanied by references on the beneficial shareholders from a banker, a lawyer or an accountant.

Should a tax exempt company fail to pay the annual fee, its exempt status will lapse automatically but the status may be reinstated upon payment of the outstanding tax exempt annual fee plus a penalty, presently 100% of the outstanding fee.

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.