Taxation of Non-Resident Company

A Gibraltar non-resident company is not subject to local corporate tax, except for the part of profits passed to Gibraltar. It means that those companies may not be taxed without local bank accounts.

Non-resident companies do not pay annual duty or other fees payable by local resident companies. A non-resident company pays an annual tax of GBP 200.

According to Gibraltar Law, there is no Capital Gains Tax or Inheritance Tax applicable in Gibraltar. Gibraltar companies are not liable to income tax on non-Gibraltar source income, investment income or stamp duty other than an initial stamp duty of GBP 10.00 on incorporation. There are also no gift taxes or wealth taxes in Gibraltar.

Recent Budget measures announced by the Gibraltar Government provided for:

- abolishing of taxation on dividends paid by one Gibraltar Company to another Gibraltar Company;

- abolishing of taxation on dividends and interest paid by a Gibraltar Company to a non-resident recipient.

- abolishing of the requirement to withhold tax on dividends in accordance with Section 39 of the Gibraltar Income Tax Ordinance.

- abolishing of Stamp Duty on all transactions other than those relating to property situated in Gibraltar.

A company which is incorporated in Gibraltar (whether or not exempt), owned by non-residents of Gibraltar and managed and controlled by directors who reside and hold board meetings outside Gibraltar is considered to be non-resident.