Brexit had its impact on Gibraltar as the country had some time to cease to be a part of the European Union. However, it is still a part of the European Economic Area and the Schengen Agreement. The country is entitled to determine its own tax rates and taxation policy without any dependence on the UK legal system.
A local company will be required to pay a corporate tax rate of 10%, which is not very high. Besides, the VAT rate equals zero, which is definitely good news for entrepreneurs.
Non-resident taxes that generate income abroad are not liable for the local taxes, so you may consider Gibraltar a zero-tax jurisdiction.
Foreign Company in Gibraltar: Details
A company is considered foreign (or non-resident) in Gibraltar if it is under no obligation to pay local taxes. In what cases does it happen?
- The company’s beneficial owner is not a Gibraltar resident
- The company’s directors/shareholders reside in any other country than Gibraltar or are professional (nominee) directors/shareholders
- The company does not derive any income in Gibraltar and fully operates outside its territory
- The company has no physical presence in Gibraltar
The company that satisfies these requirements is not liable for corporate tax. As for other possible taxes (VAT, tax on dividends/interest payable to resident/non-resident companies and individuals, capital gains tax, inheritance tax), they equal zero in Gibraltar for any person.
Here are some important details for those wishing to start a company in Gibraltar:
- The details of the directors and shareholders are entered into the register of companies.
- You can use the nominee services. However, you will need to disclose the beneficial owner’s identity to the registrar. Failure to do so or attempts to conceal the details will mean that you will not be allowed to use the nominee’s services.
- The minimum number of key persons required to form a company in Gibraltar is 1 director and 1 shareholder, and these can be individuals or legal entities. You will also need to hire a secretary.
- A registered office, a seal, and statutory books are mandatory for a Gibraltar company.
- Balance sheets and other accounting documents need to be properly maintained and duly signed by the company director. The audit is not mandatory.
Sounds like exactly what you need? Please get in touch with our experts for more details.
Open a Corporate Account for Your Gibraltar Company
Your Gibraltar company, like any other business, will need a corporate bank account. However, if you decide to turn to the local bank, its employees will look not only at the fact that your company is incorporated locally but also at the place of the beneficial owner’s residence. The banks of Gibraltar will set different requirements on the basis of this information, and the conditions for some jurisdictions will be much tougher.
We strongly recommend booking an individual session with our expert before you proceed to open a bank account. We will analyze your situation, including the beneficial owner’s country of residence, activities your Gibraltar company is going to engage in, and the goals you intend to achieve, and shortlist suitable jurisdictions and banks where it will be most beneficial and convenient for you to set up a business account.