ISOLAS LLP are proud to be part of a working group alongside the HM Government of Gibraltar, The Hon Nigel Feetham KC MP, the Gibraltar Financial Services Commission, and industry leader Bullish – that will develop the world’s first regulatory approach to crypto clearing, applying existing financial services principles to a new kind of market activity.

Read more in the official announcement from Bullish here:

This initiative marks a significant milestone in building on Gibraltar’s established regime to regulate clearing activity for digital assets, mirroring structures found in traditional finance but tailored to the nuances of the digital asset space.

Our involvement underscores ISOLAS LLP’s commitment to shaping the future of fintech and blockchain regulation.

To help explain why this matters, we have created a short video featuring our Senior Partner, The Hon Albert Isola CBE, former Minister for Digital and Financial Services, sharing insights on this first-of-its-kind development.

A new law, the Income Tax (Amendment No. 2) Act 2024, has been passed, updating the Income Tax Act 2010. It introduces a tax on profits from selling certain residential properties in Gibraltar, known as “taxable properties.”

WHAT COUNTS AS A TAXABLE PROPERTY?

• Any residential property in Gibraltar except:
  • Primary residences (homes you live in)
  • Commercial properties
  • Hotels
  • Properties built before 1 January 1988 and owned since then
  • Retirement homes
  • Churches or religious houses
  • Residential properties sold by the estate of a deceased person.

WHEN DOES THE NEW TAX APPLY?

The tax applies only if you:

1. Own or hold five or more taxable properties (directly or indirectly), or
2. Have owned a total of five or more taxable properties over five consecutive years (basis periods).

A basis period is the tax year (1 July to 30 June for individuals, or a company’s accounting period).

The tax starts from 1 January 2025, not the originally proposed 1 August 2024.

IMPORTANT DETAILS ABOUT THE NEW TAX:

1. Retrospective Calculation:
   • Properties you owned or sold in the five years before 1 January 2025 count toward the “five or more properties” threshold, but sales before 2025 are not taxed.
   • Example:
     • If you sell two properties in 2024, they will not be taxed.
     • But if you sell another property in 2025 (after reaching the five-property threshold), that sale will be taxed.
2. Off-Plan Properties Included:
   • This applies to properties under construction or not yet built if you sell on the benefit of your Purchase Agreement to someone else before completion with the developer.
3. Share Sales Count:
   • Selling shares in a company that owns a property is also taxable if the property sale meets the threshold.
4. Anti-Avoidance Rules:
   • If you transfer property to “connected persons” (e.g., family or related entities) to avoid the tax, those properties still count toward the threshold.
5. Future Exemptions:
   • The Government may add new property exemptions to the list with Parliament’s approval

Key Takeaways:

• If you own five or more taxable properties (or reach this total over five years), profits from selling any of them may be taxed as of 1 January 2025;
• Even if you no longer hold five properties, past ownership in the five-year window still counts; and
• Includes off-plan properties and property share sales.

ISOLAS expertise recognised by Legal 500 as six additional individual rankings are added to their already impressive list of accomplished lawyers.

Senior Partner, The Hon Albert Isola CBE, is ranked as ‘Hall of Fame’ for Fintech, the highest accolade Legal 500 offers. Albert joins Partner Jonathan Garcia who maintains his rank as ‘Leading Partner’ within this space.

Jonathan Garcia himself is also recognised this year within the Investment Funds space achieving the rank of ‘Next Generation Partner’.

Senior Partner Peter Isola moves up to ‘Hall of Fame’ within Commercial, Corporate and M&A alongside Partner Steven Caetano who maintains his ‘Leading Partner’ status.

Peter also maintains his position as ‘Hall of Fame’ within TMT and ‘Leading Partner’ within Gambling Law and Private Client.

In addition to Steven’s long-standing ranking in Commercial, Corporate and M&A, and Gambling Law as a ‘Leading Partner’, he is now also recognised as ‘Leading Partner’ within TMT.
Partner Adrian Pilcher achieves ‘Leading Partner’ for Tax alongside Stuart Dalmedo who maintains his position as ‘Next Generation Partner’ within this sector. ISOLAS LLP also improve their firm ranking for Tax as a Tier 1 Firm.

Adrian also maintains his rank as ‘Leading Partner’ within Private Client together with Partner Emma Lejeune.
Partner Christian Caetano now joins Christian Hernandez as ‘Leading Individual’ within Banking and Finance.

Managing Associate Nicholas Isola is recognised by Legal 500 as a ‘Leading Associate’ within Real Estate and Construction along with Associate Louise Anne Turnock who is recognised for her expertise in all things Tax.

Along with the new, and existing entries mentioned above, Mark Isola KC continues as ‘Recommended Lawyer’ within Dispute Resolution together with The Hon Neil Costa who maintains his ranking as ‘Leading Partner’ within this sector.

James Montado maintains his position as ‘Next Generation Partner’ within Dispute Resolution together with Samantha Grimes as ‘Recommended Lawyer’ and Associate Danielle Victor as ‘Leading Associate’.

Samantha Grimes is also recognised as a ‘Leading Partner’ within Real Estate and Construction together with Sarah Bray as ‘Next Generation Partner’ and Katrina Isola as ‘Leading Associate’.

All in all, ISOLAS can boast a total of 36 rankings made up of 11 Firm rankings and 25 individual rankings, including 3 Hall of Fame, 8 Leading Partners, 5 Next Generation Partners and 4 Leading Associates.
ISOLAS CEO Marcus Killick OBE said “This is a true testament of ISOLAS, and the teams, expertise and knowledge in their respective areas of expertise. We must thank our clients for their continued trust and support over the years.”

A Bill which amends the Register of Property Occupation Act 2021 was recently enacted as the Register of Property Occupation (Amendment) Act 2024 (“the Act”) to regulate short-term rental properties in Gibraltar.

Short-term rental accommodation services are described in the Register of Property Occupation (Amendment) Bill 2024 as “the short-term letting of accommodation, through an online short-term rental platform” such as Airbnb, “or any other means” in respect of which all of the following criteria must be met:

– the service is entered into for monetary payment or any form of consideration;
– the guest does not use the accommodation as their only or principal home;
– the accommodation must not be shared with the host for the principal purpose of advancing the guest’s education;
– the service is provided exclusively for tourism or business purposes; and
– the service must not be provided for a period exceeding 30 days per stay.

Property owners offering short-term rentals will now need to be registered and inspected before advertising their properties. Hosts of short-term rentals which were rented prior to the commencement of the Act, must also notify the Registrar within three months of the commencement of the Act. This measure aims to guarantee that all guests staying in these properties receive safe and high-quality accommodation, and hosts are properly accounting for their rental income. There will also be a registration fee involved, the amount of which has not yet been confirmed.

The Registrar is the person who is appointed by the Minister pursuant to section 6 of the Register of Property Occupation Act 2021.

Hosts who fail to allow for an inspection and/or in respect of the notification to the Registrar provides knowingly false information will be guilty of an offence and are liable on summary conviction to a fine up to level 4 on the standard scale.

Hosts of short-term rental accommodation services shall notify the Registrar of their service, who may approve, approve on a temporary basis, approve subject to conditions (whether temporary or not), reject the property’s use for such services or request further information. There is also an appeals process if a property is rejected.

Every host must submit a return to the Registrar, which shall contain details of the number of guests, the length of stay of each of the guests and the total revenue received. The Registrar may share this information with the Income Tax Office.

ISOLAS Partner Adrian Pilcher, Step Chair Gibraltar, is speaking at the Step Global Congress in Rome.

Adrian will be a panelist at the “Trusts and Values-Based Investment Decisions’ panel” focusing on the balance between ethical investing and maximizing returns. The session will explore the implications for trustees globally and the potential for trust law reforms.

Adrian is recognised as an industry leader by Chambers and Partners and Legal 500. Highly respected as an expert in this sector, his presentation will provide valuable insights on issues impacting the industry.

To register and secure your seat click ➡ https://congress.step.org/about-congress

ISOLAS Partner Samantha Grimes spoke at the first Senior Public Service Conference 2025 organised by HM Government of Gibraltar.

Over 150 delegates attended the day session, where Samantha spoke on Employment Law and explored practical applications in the workplace. Focusing on the differences between contractual and non-contractual employment documentation and how these impact workplace policies, employee rights, and employer responsibilities.

Samantha’s presentation also delved into the definition and scope of Employment Law, that provides a framework for rights and responsibilities between employers and employees, including key legislation, standards, and core principles.

Speaking after the event Samantha said “It was wonderful to have the opportunity to speak to so many senior civil servants. I would like to personally thank the Chief Secretary, Glendon Martinez, for having given me this opportunity to speak.”

Marcus Killick dissects the impact of Brexit on Gibraltar. Despite initial concerns, this resilient jurisdiction has adapted to the challenges, discovering new opportunities and strengthening ties with the UK. Explore the entrenchment of passporting rights and a double taxation treaty, providing security for financial services and gaming businesses. Witness the development of new markets outside the EU and the welcoming environment for Distributed Ledger Technology. However, lingering storm clouds loom, with the vulnerability of a fluid border and the potential damage caused by political maneuvers. Discover how Gibraltar reinvents itself, embracing change while navigating uncertain waters.

Read the article: The Perfect Storm or Perfect Summer – The impact of Brexit on Gibraltar

(Article first published in the IFC Review, 2020.)

Any views and opinions presented in this article belong to their author and do not necessarily mirror those of ISOLAS LLP. Due to the rapidly evolving nature of legislation, the content provided should not be taken as legal advice. ISOLAS LLP does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information. 

Marcus Killick, CEO of Isolas LLP, discusses the evolving landscape of international financial centres (IFCs) and their role in today’s interconnected global economy.

The interconnectedness and interdependence of the global economy necessitate the existence of well-regulated IFCs. While challenges persist, IFCs have evolved to meet international standards and provide valuable services. Instead of wishing for their disappearance, the legal industry should recognise the vital role played by compliant IFCs in supporting international trade and economic growth.

Read the article: International Financial Centres – Be Careful What You Wish For

(Article first published in the IFC Economic Report, 2019.)

Any views and opinions presented in this article belong to their author and do not necessarily mirror those of ISOLAS LLP. Due to the rapidly evolving nature of legislation, the content provided should not be taken as legal advice. ISOLAS LLP does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information. 

A survey suggests that people with higher childhood IQ scores tend to be economically conservative and less likely to blame foreigners or support income redistribution. However, the rise of populist movements challenges the influence of intelligence on economic perspectives. International Financial Centres (IFCs) face threats from capital flow restrictions and tariffs, which harm global trade and diminish the need for their services. Increased transparency has also reduced IFCs’ appeal as safe havens. Protectionist agendas are a further threat to IFCs by hindering global trade. To survive, IFCs must adapt to new market dynamics and support different trade flows.

Read the article: Barbarians at the Gate – The populist Attack on Globalisation and its Threat to Smaller IFCs

(Article first published in the IFC Review, 2019.)

Any views and opinions presented in this article belong to their author and do not necessarily mirror those of ISOLAS LLP. Due to the rapidly evolving nature of legislation, the content provided should not be taken as legal advice. ISOLAS LLP does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information. 

The article discusses the issue of conflicts of interest, particularly in the context of Non-Executive Directors (NEDs) serving on multiple boards. Marcus Killick highlights the importance of preventing conflicts and the need for NEDs to manage their time effectively to fulfil their fiduciary responsibilities.

The article also addresses the concept of “chronic” conflicts, where an NED’s conflict persists on a permanent basis, potentially impairing their ability to perform their duties adequately. Regulatory concerns about “overboarding,” where NEDs take on too many roles, are mentioned, as is the need for NEDs to consider these issues seriously. The piece underscores that NEDs, especially those on the boards of licensed entities, should be cautious about the impact of conflicts and time management on their role, as regulators are increasingly focused on holding them accountable.

Read the article: Managing conflicts

(Article first published in Gibraltar International, 2018.)

Any views and opinions presented in this article belong to their author and do not necessarily mirror those of ISOLAS LLP. Due to the rapidly evolving nature of legislation, the content provided should not be taken as legal advice. ISOLAS LLP does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information.