Moving Your Business To Gibraltar
When considering moving your business, we can offer expert advice to ensure the transition is as seamless as possible.
ISOLAS prides itself on its commercial advice, close attention to detail, price transparency, global professional network and knowledge of the local marketplace and its dedication to leveraging information technology solutions for the benefit of the client.
For its size, Gibraltar boasts one the most diversified small economies in Europe with no over-reliance on any one pillar of its economy. Gibraltar’s economy is built on our offerings in the tourism sector, shipping and port services and, of course, financial services.
Financial Services and online gaming has, over the last 30 years represented a large part of Gibraltar’s economic development in the years following the UK Ministry of Defence’s downsizing of its presence in Gibraltar.
The taxation of the income for both individuals and companies is governed by the Income Tax Act 2010 (“Tax Act”), Rules and Regulations. The Tax Act introduced a system of self-assessment that requires both self-employed individuals and companies to calculate their own tax labiality for any year of assessment as well as make returns of their own income.
Classes of Income
The Tax Act sets out the following classes of income:
Companies are taxed on a territorial basis of taxation meaning that only income specified in Tables A to C that is accrued in or derived from Gibraltar will be subject to taxation in Gibraltar. Corporation tax is 12.5% on assessable profits, after allowable expenses.
Companies must file their tax returns within nine months after the date of its financial year end.
Tax on the income from employment is deducted from wages and salaries under the PAYE system.
Companies are required to make two tax payments on account, by 28 February and 30 September, in each year and each payment on account should be 50% of the tax paid for a relevant accounting period as defined within the Tax Act. Final payment of tax should by submitted with the company’s tax return and should be the tax liability for that year less the two tax payments on account made.
There is no VAT, capital gains tax, estate duty, wealth tax, or inheritance tax in Gibraltar.
“GIBRALTAR HAS ATTRACTED A STRING OF SPECIALIST BUSINESS EXECUTIVES WHO RELOCATE TO GIBRALTAR BECAUSE OF THE FAVOURABLE TAX REGIME AND BETTER QUALITY OF LIFE THAT THEY MAY BE ABLE TO TAKE ADVANTAGE OF.”
Double Taxation Agreement (DTA)
Due to the Double Taxation Agreement (DTA) between the Gibraltarian and UK Governments, Gibraltar is now well positioned to seek new DTAs with relevant jurisdictions globally.
The agreement, signed in London on 1 October and in Gibraltar on 15 October 2019, brought greater clarity for businesses operating in Gibraltar as bilateral taxation agreements remove barriers to international trade and investment and provide a clear framework for taxing businesses that trade between jurisdictions.
The deal also positions Gibraltar’s offering on a level playing field with competing jurisdictions that currently already have double taxation agreements with the UK. The agreement has highlighted Gibraltar’s commitments to the international standards of tax transparency and its reputation as a robust and reputable financial centre.