Gibraltar has significant attractions to offer as a base for establishing a reinsurance or captive insurance company. Apart from the fact that it offers a tax free/low tax environment in which investment income can accumulate, it has the added advantage of being within the EU. The enactment of the Second and Third Insurance Directives has enabled Gibraltar insurers to apply to the FSC for authorisation to write direct business into the other Member States.

NB:The establishment of an offshore captive insurance company involves careful planning especially as regards the implications of the parents tax position which must be considered in detail.

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