Why set-up in Gibraltar ?
Contributed by: Adrian Oton of Europe Emirates Consultancy
14 April, 2009
Contributed by: Adrian Oton of Europe Emirates Consultancy www.uae-eu.com
If you are reading this then it is likely that you are considering setting up a business in Gibraltar. The following points should help you make that decision to invest or conduct business in a jurisdiction of internationally noted quality:
An excellent hub for the establishment of international business in areas as diverse as financial services, trading and e-commerce, light manufacturing, shipping, property development and tourism
A highly developed business services infrastructure, where you can Passport your EU licence in financial services such as insurance and reinsurance, EU-wide pensions, banking and funds administration, amongst others
Distribute competitively priced VAT-free products and services to the markets of the EU and AfricaInvest or conduct business in a low-tax jurisdiction with a profit-oriented capital base at low levels of corporate tax, all in a stable currency â Â£ Sterling GIP â with few restrictions in moving capital or repatriating dividends
A legal system modelled on the English structure contributes to making Gibraltar the highly regulated, globally acclaimed jurisdiction it is today
A variety of interesting fiscal products ranging from lucrative fundsâ development and administration to customised financial solutions such as international tax planning strategies, along with monthly tax-free registered debentures â stable bonds with an attractive non-taxable fixed rate
A high-quality environment for corporate accommodation as well as modern services and workspace for manufacturing and distribution; together with an effective, modern communications infrastructure. The necessary business support services are also available on site
Stable political and economic environment already appreciated by established investors and customersBenefits from membership of the EU including access to the EU financial servicesâ market
Enhanced, weather-protected port facilities outside of the European Customs Union make Gibraltar ideal for cruise liners and cargo handling/logistics Gibraltar is one of the worldâs leading bunkering centres
An international airport with scheduled flights to the United Kingdom, along with proximity to Spanish regional airports at MÃ¡laga, Seville and Jerez.One of Europeâs most advanced fibre-optic telecommunications networks, providing quality solutions for business requirements
Multi-skilled, suitably qualified workforce with training assistance to update skills in accordance with the investments opportunities that arise.
A harmonious, multicultural and English-speaking environment, (as favoured by most international businesses), providing pivotal access to regional markets in Mediterranean Europe and North Africa. The majority of people in Gibraltar are at least bilingual
The Common Agricultural Policy, Value Added Tax and the Common Customs Tariff do not apply to Gibraltar as it falls outside the EU Customs Union. Classified as a developing country, Gibraltar is entitled to preferential trade tariffs under the Generalised System of Preferences (GSP)
Legislation is in place to encourage High Net Worth Individuals (HNWI) and High Executive Possessing Specialist Skills (HEPPS) to establish tax residency in Gibraltar, affording them the opportunity to have the tax payable on their income restricted to a maximum amount
Gibraltar relishes from warm summers and mild winters - 300 days of sunshine - and a high quality of life with many sports and leisure facilities both in and around Gibraltar.
In short, whatever your reason for establishing yourself or your business in Gibraltar, the Rock has something for everyone.
Tax Efficient Residency
If you have substantial assets and you would like to maximise your tax efficiency or protect your assets, you may want to consider becoming a resident of Gibraltar under the Qualifying (Category 2) Individual Rules (âthe Rulesâ).
Gibraltar is a very attractive jurisdiction from a tax efficient perspective. It is a white listed jurisdiction and one of the very few in the EU with such attractive Rules. In addition there is no Capital Gains Tax, Inheritance Tax or Value Added Tax in Gibraltar.
In order to qualify for Category 2 status, you must satisfy certain criteria including the purchase or rental of a suitable property and have a minimum of Â£2million in net assets. Once a Category 2 individual, the tax savings available to you are substantial as you would only be taxed on the first Â£70,000 of your worldwide taxable income, irrespective of how much your income actually is. The annual tax liability currently ranges between Â£20,000 and Â£24,500.
Since you are taxed on your worldwide income, the advantages of becoming a Category 2 individual extend to your estate planning and may incorporate any corporate structures that you might have in place.
Becoming a Category 2 resident in Gibraltar will also allow you to enjoy its proximity to historical and cultural Andalusia and its Costa del Sol as well as the Algarve, with their beaches and leading golf courses, whilst still availing yourself of Gibraltarâs British influence and sound financial centre, thus allowing you to combine tax efficiency with pleasure, making Gibraltar the perfect choice for you.
How could we help you?
Our services would include assisting you with your application and helping you to search for a suitable property whilst liaising with estate agents and your lawyers. Furthermore, we can tax efficiently plan your wealth from an international perspective thereby ensuring that you do not trigger deemed tax residency in another jurisdiction.
On an ongoing basis we can provide you with property management services as well as annual tax services including the filing of your annual tax return and provision of any other tax advice you may require.
For further information or initial free consultation please contact:
Europe Emirates Consultancy
Tel: +971 470 50044
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