Gibraltar Tax Exempt Company vs Gibraltar Non-Resident Company

Gibraltar Exempt company

The exempt company is usually preferred by clients who are permanently resident in a highly regulated, high tax country. Usually the core business of such clients would also be clearly located in their own country. Their personal and business affairs, including dealings with any foreign entities, would be highly scrutinized by domestic tax authorities. Quite often it would also be necessary to prevent any other third parties (like relatives, business partners or general public) from knowing of the relation between the client and the foreign company.

In such case, if an offshore company shall be involved to optimise one or another aspect of the clients' business, it is important that it cannot be easily traced back to the client. It is also important that the offshore company has a proper image of being a real, local, taxable entity in the place where it is registered - Gibraltar. Clearly, only a fully managed tax-exempt company would suit these requirements.

Gibraltar non resident company

The non-resident company is usually preferred by more relaxed clients whose personal or business circumstances allow them to be at relative ease from tax scrutiny. Such clients would often be individuals who spend most or all of their time outside their home jurisdiction - for instance, management consultants, software engineers or other professionals who tend to travel between various countries on short-term assignments. Just as well, a clients' business may be purely international and not particularly tied-up to his home country - like many internet businesses are. A non-resident company may also be sufficient for use by clients whose home country does not have the sophisticated management and control tax-rules - this is still the case in many countries of the world. And, finally, there is no need to use a sophisticated tax-exempt company when there is no tax planning purpose - for example, when the company is simply used as a personal asset-protection vehicle to passively hold some property or investments.

In all these cases the simpler, cheaper, non-resident company could be a choice well made. The non-resident company is not subject to the fixed rate annual duty and other fees which are payable by the exempt company.