Gibraltar as an offshore financial centre

Gibraltar is an offshore financial centre. Gibraltar emerged as an offshore tax haven in 1967, with the enactment of the Companies (Taxation and Concessions) Ordinance. This tax law is set against a background of administrative and legal systems derived from the English law. The Gibraltar Companies Act, governing all general aspects of company formation in Gibraltar, is based almost entirely upon the Companies Act 1929 of England, as amended and enhanced by Ordinances passed by the Gibraltar House of Assembly.

Under the Gibraltar Companies (Taxation and Concessions) Ordinance 1967, several categories of Gibraltar companies enjoy exemptions and concessions from domestic taxes. These are the non-resident, tax-exempt and qualifying companies.

In particular, the Gibraltar non-resident company is largely similar to the extinct UK and Irish non-resident companies. The Gibraltar tax-exempt company combines the features of full tax-exemption with the option to fully manage and administer such company from Gibraltar. The Gibraltar qualifying company can choose a desired level of corporate taxation depending on its requirements.

The offshore financial services sector in Gibraltar is closely regulated by the Gibraltar Financial Services Commission (FSC). The FSC supervises all Gibraltar banks, investment businesses, insurance companies and corporate service providers. Offshore company management licenses in Gibraltar are only issued to firms and individuals who have satisfied extremely stringent professional, legal and financial requirements.

The primary aim of such regulation is to ensure that the interests of the clients of the Gibraltar offshore sector always remain protected in the best possible way. Similarly important, it also ensures that the jurisdiction is not used to facilitate or conceal any criminal activity, like terrorism, drugs trade or fraud. Again, this is in the best interests of the customers who enjoy the tax benefits provided in Gibraltar while the clean reputation of Gibraltar also implies stability and good name for their business.