Gibraltar is a member of the European Union that has developed as an international offshore centre within Europe. Gibraltar is developing the financial sector of economy, taking full advantage of the EU directives, including Banking Ordinance, Insurance Companies Ordinance and a Financial Services Ordinance.

The UK enhances the reputation of Gibraltar as an offshore centre, by supervising the Gibraltar Financial Services Commissioner and the membership of that commission. Gibraltar legislation continues providing favorable tax conditions for offshore operations, and during the last years the jurisdiction has reached even more popularity.

Gibraltar corporation remains free of taxation if it stays in compliance with the 'Non-Resident' rules of the jurisdiction. Gibraltar non-resident company very often is used by clients whose home country does not have the sophisticated 'management and control' tax rules. To obtain the status of offshore non-resident company and not to be taxable in Gibraltar, the company must satisfy certain criteria: it must be owned and controlled (directed) by persons who are not resident in Gibraltar, must not trade in Gibraltar and must not remit income to Gibraltar. Subject to Gibraltar offshore incorporation, the company will be considered 'non-resident' if these criteria are satisfied.

Also, all Gibraltar companies are exempt from capital gains tax, gift tax, wealth tax and value-added tax. At the moment, Gibraltar non-resident company is probably the most cost-efficient offshore vehicle in Europe, competing very well worldwide under this criteria.