Offshore Taxation in Gibraltar

Gibraltar non-resident companies are not subject to taxation in Gibraltar on income received or derived outside the jurisdiction - that is, if the company is owned and controlled (directed) by persons who are not resident in Gibraltar, does not trade or carry on business in Gibraltar or with residents of Gibraltar, maintains its Company Register, Registered Office and Resident Secretary in Gibraltar, and if the company does not remit any income to Gibraltar.

There is no taxation on investment income even if this arises in Gibraltar. Gibraltar has a reputation of an excellent and cost effective bilingual jurisdiction within the EU but with special status, regulated according to UK and EU standards.

Gibraltar non-resident companies are not liable to taxation on income that is derived from or received outside Gibraltar, or if income does not arise directly or indirectly through their Gibraltarian agents. Assessments on non-resident companies may be made in their own name or in the name of their agent in Gibraltar.

Money held in a bank of Gibraltar by a non-resident company is liable to taxation, so it is better to have bank account out of Gibraltar.

Gibraltar resident company is taxable at 35% of local trading profits, but not subject to tax on income outside Gibraltar or on investment income earned within Gibraltar. There are no double tax treaties between Gibraltar and any other countries, neither exchange controls.

There are no special rules applying generally to the foreign or Gibraltarian employees of offshore operations - they should pay tax according to the normal rules if they are resident in Gibraltar; however there are some special arrangements for expatriate executives and other workers with specialist skills. A non-resident individual will be taxed on income derived from, accrued in or received in Gibraltar.

Trust income is exempt from tax under the Income Tax Rules 1992, provided that the trust is created by or on behalf of a non-resident person; and the income either accrues or is derived outside Gibraltar. In the case of income received by a trust would, if it had been received directly by the beneficiary, not be liable to tax under the Income Tax Ordinance. Interest income received from a Gibraltar bank is usually exempt from taxation.

Taxes and Fees

0.5% of Authorized Capital a fee payable at incorporation;

GBP 30.00 - Annual Filing Fee payable to the Registrar of Companies;

GBP 200.00 - Annual Tax paid by non-resident companies.

GBP300.00 - Annual Registration Fee, paid by the branches of overseas incorporated companies, which have to be registered with the Registrar of Companies.