Let me ask you one question. What is your idea of Gibraltar? Although many of us know the name, few can show the country on the world map and an even smaller number of people will tell you what the nation is famous for. In the meantime, this tiny British Overseas Territory sitting at the southern tip of the Iberian Peninsula is home to diverse flora and fauna, including the Barbary macaques, which are a major tourist attraction. The Gibraltar Nature Reserve encompasses much of the Upper Rock area and provides a habitat for a variety of bird species and native plants.
Tourists will no doubt be captivated by not only the country’s unique nature but also its distinctive culture. The must-see attractions like St. Michael’s Cave, the Great Siege Tunnels, Europa Point, and the Gibraltar Museum showcase the territory’s legacy and scenery.
Despite its size, Gibraltar has a diverse economy, driven by tourism, gaming, financial services, and shipping. It is a popular destination for entrepreneurs and investors looking to establish non-resident companies that conduct their business activities outside of Gibraltar and are not subject to local taxation.
Why non-resident companies choose Gibraltar in 2024
In 2024, registering a non-resident company in Gibraltar is even more advantageous, as the territory will soon complete a transition period following its departure from the European Union (EU) along with the United Kingdom (UK) at the end of 2020. With this, Gibraltar will get more autonomy to design its own policies that suit its specific interests, while maintaining a close cooperative relationship with the above jurisdictions.
Given the above, it is hardly surprising that more and more entrepreneurs are flocking to Gibraltar to set up a foreign company there. Let’s take a closer look at why businesses find Gibraltar such a draw for non-resident company registration:
- Low or No Taxes: In 2024, non-resident companies in Gibraltar still enjoy the same tax exemptions and incentives they have had since before Brexit. Exempt from corporate income, capital gains, withholding, and value-added tax (VAT), as long as they do not derive any income from sources within Gibraltar or have any physical presence or permanent establishment in the territory, they benefit from significant tax savings and successfully optimize their profits. As a bonus, Gibraltar imposes neither exchange controls, wealth or inheritance tax, nor stamp duty on non-resident companies.
- Ease of Incorporation and Administration: Non-resident companies benefit from the simple and efficient incorporation and administration procedures in Gibraltar. This practice has continued since before Brexit. The requirements for incorporation are easy to meet, including the need for at least one director and one shareholder, who can be the same entity, alongside the appointment of a local registered agent and office. With a minimum share capital of only EUR 100, non-resident entities are spared the obligation of filing annual accounts or audits unless they engage in regulated activities. Exemptions from holding annual general meetings or maintaining statutory records further alleviate administrative burdens and reduce costs.
- Reputable and Stable Jurisdiction: As a self-governing territory with its legal system rooted in English common law and its own parliament authorized to enact legislation, Gibraltar provides certainty and legal clarity for businesses. The nation’s commitment to international norms is underscored by its status as a signatory to various treaties and conventions, including the OECD Model Tax Convention, the European Convention on Human Rights, and the UN Convention on the Rights of the Child.
- Access to Markets and Opportunities: As Gibraltar prepares to negotiate fresh trade and cooperation agreements with the UK, the EU, and other jurisdictions, non-resident businesses may anticipate expanded access to markets and brand-new opportunities in 2024. Prioritizing its largest trading partner, the UK, and its subsequent market, the EU, Gibraltar aims to keep its existing ties while venturing into untapped markets in Africa, Asia, and the Americas. The country uses its location, connectivity, and niche sectors to boost its potential. As a hub for e-commerce, online gaming, fintech, and blockchain, it leads in innovation and growth, offering attractive prospects for non-resident businesses in promising global markets.
What businesses choose Gibraltar in 2024
While registering a non-resident company in Gibraltar benefits various businesses across industries, some entities and individuals gain the most from this strategic decision. Keep in mind that it is one of the leading jurisdictions for online gaming, hosting some of the world’s largest and most reputable operators and platforms. Gibraltar offers them a flexible regulatory framework that supports the development and innovation of the online gaming industry, as well as a competitive tax regime charging a flat rate of 1% on gaming revenue, capped at EUR 425,000 per year.
Having introduced the world’s first rules and regulations for distributed ledger technology (DLT) in 2018 as well as the one for initial coin offerings (ICOs) in 2019, Gibraltar offers a supportive and innovative environment for fintech and blockchain businesses, plus a low tax regime that exempts DLT and ICO activities from corporate income tax, capital gains tax, and VAT.
A major hub for shipping and maritime activities, Gibraltar boasts the Mediterranean’s largest bunkering port and a wide range of services for vessels and crews. Its shipping registry is competitive and transparent, while the nation’s tax regime exempts shipping profits from corporate income tax, capital gains tax, and VAT. This is what attracts maritime enterprises to the jurisdiction.
Gibraltar is also an ideal place for asset protection and estate planning. With a range of legal structures like trusts, foundations, and companies, the country allows you to efficiently protect assets and wealth. It offers confidentiality, security, and a low-tax regime allowing non-resident entities not to pay a variety of taxes, including those on corporate income and capital gains. You won’t also be subject to any withholding tax or VAT.
Gibraltar’s status as a reputable financial center makes it particularly appealing to banks, asset managers, investment firms, and insurance companies. These entities benefit from the jurisdiction’s regulatory stability, access to EU markets, and extensive network of double taxation treaties, enabling them to offer a wide range of financial products and services to clients worldwide.
Need to set up a business in the jurisdiction? For fast and easy non-resident company incorporation in Gibraltar, get in touch with the International Wealth team today!
