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Gibraltar: Offshore Investment

Introduction

Although residents of Gibraltar pay reasonably high income taxes, and there is estate duty, there are several tax-efficient mechanisms for making investments through Gibraltar.

Non-residents are taxable on their income received in Gibraltar, but not if it is channelled through a trust. Also bank interest is exempt from tax, although the EU's Savings Tax Directive, which came into effect in July, 2005, means that payments of interest and other savings returns made to EU citizens are reported to their home tax authorities.

Residents have traditionally been able to make use of High Net-Worth Individual (HNWI) status, and some expatriate executives were given tax-privileged regimes; in both cases the total tax bill was capped, so that additional income over the cap was free of tax.

High Net-Worth Individuals have traditionally been permitted to hold shares in an exempt company, and to hold deposits in Gibraltar banks; income from these sources has only been taxable (for the company) if paid to the HNWI for his own use in Gibraltar.

 

 

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