Setting up a Family Office in Gibraltar

No. Gibraltar is a specialist onshore finance centre which has, for many years now, complied with all its international obligations on compliance and tax information exchange. Gibraltar is an OECD white-listed jurisdiction which, in addition, was deemed ‘largely compliant’ by the OECD Global Forum in the latest Peer Review of tax information exchange carried out by a team of expert assessors from the Forum. This places Gibraltar on a par with the USA, Germany, the UK and Spain. The review included an on-site visit to Gibraltar by a Global Forum assessment team in 2019. Further information on this can be viewed here. In addition to the international obligations, Gibraltar was and will remain fully compliant with all relevant European Directives on financial services despite its departure from the EU. Gibraltar, its government and the professional fraternity, remains committed to the adoption and implementation of the highest standards of regulation in financial services, as it has always done, and will continue to do so post-Brexit.

Gibraltar is not a ‘no-tax’ jurisdiction – it is a ‘low-tax’ jurisdiction. Gibraltar is a self-governing overseas territory with full constitutional power to levy taxes. Gibraltar offers a competitive tax environment in both the personal and the corporate context. Personal taxes are low across the board, with an effective rate of income tax of only 25% on all incomes up to £500,000. All companies in Gibraltar pay only 15% tax on profits. However, Gibraltar has no wealth tax, no inheritance tax, no capital gains tax and no tax is payable on what is deemed ‘passive income’ (subject to provisions relating to non-Gibraltarian residents not in posession of a CAT2/HEPSS certificate, or otherwise in ‘true third party’ employment), which includes pension income.

Yes. If you work and you generate income in Gibraltar, that income is subject to tax calculated on rates relevant to the particular tax payer. Gibraltar levies tax based on where the income arises and not on the basis of residency. Where a cross-border worker works in Gibraltar and lives in Spain, for example, the Treaty between the U.K. and Spain in relation to tax in Gibraltar applies such that Spanish tax residents working in Gibraltar will be required to pay the difference between the tax payable in Gibraltar and the tax payable in Spain.

No and Yes. Gibraltar only taxes income that accrues in or derives from Gibraltar. Tax on non-Gibraltar source income is therefore not generally payable in Gibraltar, and that extends to non-residents who may generate some income in Gibraltar, as long as they do not trade in Gibraltar for more than 30 days a year.

Those deemed ordinarily resident in Gibraltar, pay tax in Gibraltar on their worldwide income.

As a general rule, for the purposes of income tax in Gibraltar, ‘ordinarily resident’ means an individual who, irrespective of whether such an individual is domiciled in Gibraltar or otherwise, in any year of assessment is present in Gibraltar for a period of at least 183 days in aggregate or is present in Gibraltar in excess of 300 days in three consecutive years. ‘Non-resident’ means any person other than a person ordinarily resident.

The corporate rate of tax in Gibraltar is 15%. Corporation tax in Gibraltar is charged on the income accruing in or derived from Gibraltar, on the profits or gains of a company or trust from any trade or business. The rate of 15% is subject to exceptions that apply in respect of utilities and/or companies enjoying a dominant position in the local market– these entities pay income tax at 20%.

None.  Capital Gains Tax is not payable in Gibraltar.