A company incorporated in Gibraltar or the registered branch of an overseas company may, subject to certain conditions, apply for Qualifying Company Status. A company or registered branch holding such status will be liable to taxation on its profits at such a rate as may be prescribed on the granting of the tax exemption certificate. The tax rate applied will not exceed 35% and will be dependent on the type of activity the company engages in. Once issued a qualifying company certificate is valid for 25 years.


The benefits deriving from qualifying status are the following:

  • The company or registered branch will be liable to taxation on its profits at a low prescribed rate.
  • Fees payable to non-residents (including directors) and dividends paid to its shareholders are subject to withholding tax at the same prescribed rate as the company.
  • There is no Estate (Death) duty on the value of shares on the death of a shareholder.
  • There is no stamp duty on the transfer of shares of a qualifying company.


  • A qualifying company can be resident, managed and controlled in or from Gibraltar without affecting its qualifying status. There are no restrictions as to the nationality or residence of its directors.


  • In circumstances where the intended operations require a "bricks and mortar" presence in Gibraltar such as in the provision of financial services or import/export activities then such operations would obtain qualifying company status as opposed to Exempt Company status.
  • Qualifying companies are also of particular benefit in situations where a subsidiary company needs to make income remittances to a foreign parent and is required to have suffered tax at a certain level to escape further taxation in the home country.


For a company to obtain and retain its qualifying company status, it must fulfil the following conditions:

  • It must at all times have a paid up share capital of £1,000 or the foreign currency equivalent thereof.
  • It must deposit £1,000 with the Gibraltar Government as security for future taxes.
  • It must pay a fee of £250 for a qualifying certificate.
  • No Gibraltarian or Gibraltar resident may have a beneficial interest in the shares of the company.
  • The company may not, without the prior consent of the Gibraltar Financial & Development Secretary, trade or carry on business in Gibraltar, with Gibraltarians or residents of Gibraltar. It may, however, trade with other exempt or qualifying companies.