Gibraltar is part of British dependent territories which borders with Spain in the European continent. Gibraltar is also known as the Rock and has a population estimated to be at 30,000. The official language is English. Gibraltar has over the years developed as one of the world’s tax havens. Gibraltar is also known to provide offshore services such as the incorporation of offshore companies, offshore banking, insurance and investment fund management among other services. The economy of Gibraltar depends heavily on its offshore financial sector. Tourism also contributes to economy of the territory. Gibraltar is a favorite among cruise stops in Europe.
As a low tax offshore center, Gibraltar imposed a low tax on all companies. As of 2011, there is no distinction between onshore and offshore companies. The once popular Gibraltar Tax Exempt Company, Gibraltar Non- Resident Company is being phased out. All Gibraltar companies pay a flat low tax of just 10%. Incorporation of business entities in the tax haven of Gibraltar can take up to one (1) week and is quite inexpensive. Business corporations incorporated in Gibraltar must not engage in trade in the offshore jurisdiction if they want to be offshore companies for tax purposes. Income remitted by non- resident companies to tax haven Gibraltar will be taxed by the authorities.
One of the primary characteristics which define a tax haven is the absence of tax or a very low tax regime. Tax haven Gibraltar imposes a flat low tax of 10% on all offshore business companies or Gibraltar nonresident companies. All offshore companies incorporated in Gibraltar are obligated to pay an annual license fee to the government. The annual fee is set at a fixed rate.
The tax haven of Gibraltar is one of the top offshore tax havens for doing offshore banking in the European continent. Offshore bank accounts in tax haven Gibraltar are not subjected to taxes. Incomes in offshore bank accounts and interest gained are not taxed in Gibraltar. Persons can open confidential bank accounts at Gibraltar offshore banks. Offshore bank accounts can be established for offshore corporations and individuals in the tax haven of Gibraltar.
Gibraltar as a tax haven and an offshore jurisdiction has branches of many of the world’s leading banks providing offshore banking services in the territory. Offshore banking is well known to provide privacy and confidentiality to its customers and in the offshore tax haven of Gibraltar this is no different. Tax haven provides secrecy, confidentiality and privacy for clients a characteristic which they receive much criticism for but is highly regarded by offshore clients. Gibraltar has banking secrecy laws in place to protect the owners of offshore bank account holders. According to offshore banking legislation of the jurisdiction information surrounding bank account holders and offshore bank accounts are to remain confidential.
Tax haven Gibraltar goes to great lengths to provide privacy for clients. When incorporating a Gibraltar non-resident corporation the names of the beneficial owners are not shown as public record in the jurisdiction. Company legislation in tax haven Gibraltar dictates that there is no need for the names of Gibraltar company owners is submitted to the Registrar of companies. To provide even more privacy nominee shareholders and directors can be used. Only one shareholder and one director are needed to incorporate a Gibraltar offshore corporation. The strict offshore laws of tax haven Gibraltar states that information concerning Gibraltar offshore companies is private. Information can only be given out if the Gibraltar Supreme Court gives out a court order.
The tax haven of Gibraltar has not signed any double tax treaty with other countries. The tax haven of Gibraltar has not signed any information exchange treaties with other countries which mean that information regarding offshore clients is safe and will not get back to their country’s tax authorities. This is all part of tax haven Gibraltar way of maintain privacy for its offshore clients.
Gibraltar as a tax haven provides quality and efficient services to clients from around the world. The tax haven of Gibraltar has all the characteristics of a good tax haven. Offshore clients can be guaranteed that they will save on tax and at the same time receive asset protection.