Company structure in Gibraltar
Legal basis - Common Law
Legal framework - Companies Act 1930
Company form - Private company limited by shares (Ltd)
Responsibility - The liability of shareholders is limited to the amount of their shares.
Social capital - The equity is divided into shares of a fixed amount. Shares can be awarded at face value or at a premium and can be fully or partially paid for. Bearer shares are not permitted.
There is no minimum share capital, but two shares must be issued. Usually the standard share capital is £ 2,000 which does not need to be paid up.
Shareholders - A Gibraltar company can be formed by one or more natural or legal persons, residents or non-residents. Shareholder details are made public.
Administrators - A company must have at least one director, who can be a natural or legal person, resident or non-resident. Details of the directors are made public.
Secretary - The company appoints a secretary who can be a natural person or a legal person.
Registered address - A company must have a registered office in Gibraltar.
General assembly - Each year, each company must hold a general meeting as an annual general meeting. The AGM can take place anywhere.
Electronic signature - authorized.
Re-domiciliation - In / out redomiciliation is generally permitted in / to a country recognized by Gibraltar for the purpose of re-domiciliation, the EEA and British Commonwealth member countries as well as most other financial centers.
Conformity - Each company is required at least once per calendar year to submit an annual report and accounts. Tax resident companies must submit an income tax return each year.
Unless a business qualifies to be a small business, the business must appoint an auditor and submit audited accounts.
Key figures of Companies in Gibraltar
|Subcontinent||Europe (outside the European Union)|
|Population||36,974 inhabitants (2019)|
|Population growth||1.55 % / year|
|Density||5,437.35 inhabitants / km²|
|GDP||2.827 billion $USD (2018)|
|GDP / capita||84,198 $USD (2018)|
|GDP growth||6.00 % / year (2018)|
|Life expectancy||79.40 years (2016)|
|Birth-rate||14.70 ‰ (2014)|
|Fertility rate||1.91 children / woman (2016)|
|Mortality rate||7.50 ‰ (2014)|
|Child mortality rate||6.00 ‰ (2016)|
|Literacy rate||100,00 % (2019)|
|Change||Gibraltar pound (£ GIP)|
|HDI||0,961 / 1 (2008)|
|Nature of State||United Kingdom Overseas Territory|
|Head of state||Queen Elizabeth II; Governor Ed Davis|
|National Holiday||September 10 (1967 sovereignty referendum)|
|Codes ISO||GI, GIB|
|Tourists||99,722 people (2016)|
Gibraltar is a small overseas territory of the United Kingdom (6.8 km2) located to the south of the Iberian Peninsula, bordering the Strait of Gibraltar, which connects the Mediterranean to the Atlantic Ocean. It corresponds to the Rock of Gibraltar and its immediate surroundings and is separated from Spain by a border of 1.2 kilometers. It faces Morocco, located in Africa, on the other side of the strait.
Located within a large urban area of about 300,000 inhabitants (grouping Algeciras and La Línea de la Concepción), Gibraltar forms a British enclave in southern Spain. A kind of thorn in the Spanish side, because this tiny strategic area is claimed by this country, which was ceded to the British in 1713. The planned exit of the United Kingdom from the European Union has revived the debate on trade relations between Spain and the small territory, sources of tensions between the two countries. Spain wants to have a right of scrutiny over the application in Gibraltar of any agreement, in particular trade, between the United Kingdom and the European Union. Madrid offers shared sovereignty, so that Gibraltar can remain within the European Union. What London categorically refuses.
This region is strategic, especially militarily, because it is a control point for the passage of ships between the Atlantic and the Mediterranean, and between Europe and Africa.
Military activities and related shipyards have long been the mainstay of the economic activity of the small territory. Now, services, including tourism but especially finance, have taken over. Gibraltar is indeed considered a tax haven.
The proximity to Spain greatly favors tourist visits, although few people stay overnight on the “Rock”. About 10 to 11 million people visit the territory each year, but only 100,000 of them are counted as foreign tourists (the official definition of which requires that they stay at least one night there).
Corporate Taxation in Gibraltar
Corporate tax rate (IS)
|Global CIT rate (%)||25|
Corporate tax (IS) due dates
|CIT return deadline||Usually five months after the end of the company's fiscal year.|
|CIT final payment due date||Tax is due within two months of the date of the assessment.|
|Estimated due dates for CIT payments||In principle, within two months but the taxpayer can choose to pay in monthly installments.|
Personal income tax rate (PPI)
|Global PIT rate (%)||49,50|
Personal income tax (PIT) due dates
|PIT return due date||May 1|
|IRP final payment due date||Payment of the IRPP is due within six weeks of the date of the notice of assessment.|
|Estimated PIT Payment Due Dates||Estimated income tax payments are due in terms of one-month payments in the event of a provisional tax assessment issued in the year to which the tax assessment relates.|
Value added tax (VAT) rate
|Standard VAT rate (%)||21|
Withholding tax rate (WHT)
|WHT rate (%) (Div / Int / Roy)||Resident: 15/0 * / 0 *;
Non-resident: 15/0 * / 0 *
* As of January 1, 2021, there is a conditional WHT on interest and royalties, please refer to the section on withholding tax.
Capital gains tax rate (CGT)
|Corporate capital gains tax rate (%)||Capital gains are subject to the standard IS rate (25%). Capital gains on eligible participations are exempt from tax by virtue of the participation exemption.|
|Tax rate for individual capital gains (%)||N / A|
Wealth / Equity Tax Rate
|Global wealth / equity tax rate (%)||The Netherlands has no wealth tax, but it does have a tax on a fixed return on wealth. The overall effective tax rate is 1.60% on the value of a person's savings and investments.|
Rate of inheritance and gift tax
|Rate of inheritance tax (%)||40|
|Gift tax rate (%)||40|