10 reasons to move your company to Gibraltar

10 reasons to move your company to Gibraltar

Relocating your company to Gibraltar may be the wisest business move you have made for a long time! This thriving jewel in the Mediterranean has become an anchor point for many global companies and a hub of technology sector.

1. The Economy

Gibraltar is a modern economy with one of the highest GDP per capita in the world. It has successfully developed niche industry appeal in areas such as online gaming and more recently, cryptocurrency systems and has well developed banking, insurance and financial sectors. Unemployment is less than 1.5% and the economy is robust by any standards.

2. Favourable tax regime

A low corporation tax of 10% is only payable on income which accrues in or is derived from Gibraltar.

Therefore, many companies are not liable to pay tax in Gibraltar as they do not do business inside the Gibraltar economy. This particularly suits many online companies.

In order to take advantage of this generous tax regime, a large number of companies move certain operations such as marketing, logistics, planning, software development and service that do not require a physical local presence to Gibraltar. In this way, they can invoice their parent company for these services and make a substantial saving on tax.

Gibraltar also has no VAT, no capital gains tax, no tax on investment income and not even stamp duty on the transfer of shares in any Gibraltar company or fund to worry about.  That makes a Gibraltar company or trust the ideal vehicle for holding a bank account, dealing in stocks and shares, holding portfolios of investments and for purchasing other financial products.  All interest earned as well as any capital gains or other profits are entirely free of tax. Naturally many banks and financial institutions have a presence in Gibraltar.

You should also read more about personal tax in Gibraltar and see whether the gross income based system or the allowance based system will work to your best advantage.

3. The Workforce

Gibraltar has one of the most diversified and skilled local workforces in Europe, boosted by more than 13,000 every day from across the border with Spain. Gibraltar also attracts talent from all over the world, offering residency to overseas non-eu workers.

Gibraltar has a minimum wage of £6.75 per hour (£263.25 per week) and average annual earnings are £29,575 (2017).  Of the 24,000 workers in Gibraltar, only 24 are registered as unemployed.

With a dynamic and skilled workforce and a huge pool of multilingual talent just over the border, Gibraltar has enviable human resources available to companies of any size.

4. Infrastructure

Gibraltar has always been known for its strategic position and this is as important to business now as ever it was to Generals of the past. Geographically part of mainland Europe, it has excellent transport links directly to the UK from its own airport, or to any of 120 destinations from the neighbouring airport in Malaga.

Public services in Gibraltar continue to modernise and the housing stock is increasing to provide some respite to the growing demand.

From a business perspective, Gibraltar offers high speed connectivity which many of its companies rely on as well as a clean, ordered society with an extremely low crime rate.

5. Security

A low crime rate, a stable but steadily growing modern economy and a cultured society make Gibraltar a secure environment to do in business in every way. Unlike many tax havens, Gibraltar is internationally accepted by the banking sector and its companies trade globally. The one fly in the ointment of security was the impending Brexit agreement, however Gibraltar sees advantage in its position in the new order.

6. Language

Not to be underestimated for a financial centre, English is the key language and the language of Gibraltar. Many people also speak Spanish and there is a huge pool of multilingual labour living on the Costa del Sol and within commuting range.

7. Property

The commercial property market in Gibraltar is limited by its size. Most commercial space is dedicated to offices although there are industrial units, retail as well as food and beverage premises available.

The increase in the stock of grade A office space has been easily met by demand, with new developments fully sold long before completion.

The other side of the economy serves the resident and tourist industries and there has been no large increase in the amount of retail or entertainment space available.

In both sectors, prime property attains its premium and past steady market growth combined with a bright economic future for the Rock assure their continued return on investment values.

8. Residency

Gibraltar is increasingly popular as a second residence in Europe. Investors with £2 million in net assets can qualify for Category 2 immigration status, allowing them to come and go as they please and only pay a maximum capped tax of £29,880 on income. Category 2 residents are able to claim indefinite permanent residence in Gibraltar, as long as they can prove their qualifications remain intact every three years. In exchange, they are subject to no minimum stay requirements in the territory.

To qualify for second residency in Gibraltar, you only need to purchase or rent an “approved” house in the territory that will be used for you and your family’s exclusive use.

As a primary residence, Gibraltar offers an excellent personal tax regime, a wide range of job opportunities and an excellent quality of life.

9. Ease of reporting

Only medium sized or large companies with turnovers over £6.5m need to file detailed financial annual statements.  Smaller companies have only to present a very simple abridged balance sheet which is quick and simple to prepare.

Privacy can be maintained through nominee services which are recognised in Gibraltar.

10. The locality!

With the best weather in continental Europe, the tiny Rock of Gibraltar is a great base from which to explore southern Spain and beyond! The swanky shops and lifestyle of Marbella are a short trip away, yet take another direction and you will soon be sampling a local wine in the surroundings of a traditional whitewashed village. From the worlds best golf courses, to bustling cities like Barcelona, Gibraltar is a gateway to the riches of the Costa del Sol.

Gibraltar offers a great lifestyle for both business owners and their employees. The contrast with living in cold northern climes is enormous one of the many reasons why Gibraltar has become such a popular home for relocating companies.

Leave a Reply

Your email address will not be published. Required fields are marked *