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Gibraltar: E-Commerce

What to Locate in Gibraltar

To date, e-commerce companies have tended to focus on marketing and selling as the most likely business functions to locate offshore, but there is no reason why procurement, administration, payroll and other corporate functions should not be based offshore.

Since physical distribution can be outsourced, and in some countries doesn't even amount to a taxable presence, the use of offshore is by no means limited to digitally-downloadable products. Still, there is no doubt that the greatest cost and tax savings are available to those companies whose products can be delivered electronically, as in the following list:

  • Retail businesses dealing in intangibles or intellectual property, such as software or music 
  • Electronic publishing enterprises 
  • Online reservations 
  • Telecommunications services 
  • Language translation services 
  • Education and Internet-based training 
  • Online gift certificates
  • Online brokerages and other financial services, including insurance 
  • Legal services 
  • Software and other technical support 
  • Research and online information services 
  • Internet Service Providers (ISPs) 
  • Metamediaries and access portals 
  • Corporate services
  • Data warehouse centres for processing and storing data 
  • Database management services 
  • Certification and verification services for business and consumer documents 
  • Hubs for secure transactions and communications 
  • Supply chain management centres 
  • Communications and billing hubs for fibre optic and satellite systems 
  • Network monitoring facilities and services

In the case of Gibraltar, its physical proximity to EU markets, and its excellent port facilities mean that it can also be used as a trans-shipment or physical distribution centre for many types of product. Gibraltar's attractions in this respect would be considerably enhanced if the problems with Spain were to be resolved. Bottlenecks at the border and Spanish obstructionism create unnecessary difficulties at present.

Indeed, so far Gibraltar has proven attractive mainly to betting and gaming companies and to financial trading operations.



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