Gibraltar's Common Law legal system makes it an excellent jurisdiction for the establishment of trusts. Gibraltar was the first jurisdiction to enact legislation to remove the effects of an old Elizabethan statute so that a trust may be settled in Gibraltar and the assets within that trust placed beyond the reach of future creditors of the settlor providing the settlor clearly remains solvent having settled the assets. Because of this legislation, Gibraltar is regarded as the most suitable jurisdiction for such trusts.

Trust deeds can be drawn up with a considerable degree of flexibility. The Valmet Trust Company Limited is available to act as Trustee or CoðTrustee of any trusts in Gibraltar.

Trust Deeds are not required to be filed for public inspection, except where the Trust invests in local land, and there are no duties or taxes to be paid on establishment. There is no requirement upon a Trustee, unless imposed by the Trust Deed, to have a Trust audited. Trusts are however usually audited as a matter of good business practice.

Taxation of Trusts

Providing the beneficiaries of a Gibraltar Trust reside outside Gibraltar and are not Gibraltarian, the trust assets are free of all Gibraltar taxation.

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.