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European offshore Gibraltar

Is Gibraltar the best European offshore

19. 04. 2023
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Opening an offshore in Gibraltar in 2023 is an excellent option for international business. Among its advantages are low taxes, a favorable graphic position at the junction of Europe and Africa, political and economic stability, and developed infrastructure. Also worth mentioning is the support of business from the government and the high standard of living.

Tax policy

Gibraltar offers the lowest corporate tax rate in Europe, and it is just 10%. The only condition is that the company must not engage in banking or insurance activities. If that is the case, the rate is higher.

Other tax advantages of the jurisdiction:

  • No income or passive income taxes.
  • VAT is 0%, so companies may not pay for goods and services sold or provided in the jurisdiction. The exception is goods that are imported from abroad, as the treaty between Gibraltar and the EU applies a standard rate of 20% (groceries, clothing, books) and a reduced rate of 0 to 5%.
  • There is no investment tax, so investors can invest in businesses without fear of additional fees.
  • Jurisdiction has a double taxation treaty with many countries worldwide, allowing you to use this opportunity in planning for tax optimization.

Taxes for Non-Resident Company

A non-resident company is not subject to corporate tax at all. To obtain such a status, it must meet the following conditions:

  • The shareholder and directors must not be local residents.
  • The company is obliged to do business only outside Gibraltar. If it does decide to provide services in the jurisdiction, corporate fees will be paid only for profits generated in the domestic market.

An offshore company in Gibraltar in 2023 has other interesting advantages:

  • Dividends or interest paid to a non-resident are not taxed.
  • There are no withholding requirements on dividends.
  • No capital gains or inheritance tax applies.

Although there are no taxes, the non-resident company must pay a small annual fee and regular to the Registrar's Office.

Taxes for a resident company

If a company does business in Gibraltar, it is considered a resident and must obtain a license. It is also subject to a corporate tax of 10%.

Gibraltar and the EU

Although the UK has withdrawn from the EU, Gibraltar continues to be covered by some of the treaties that apply to the EU. In the near future it is planned to sign a treaty, under which the jurisdiction will become part of the Schengen area, facilitating convenient operation of the international companies.

It is also worth noting that after Brexit several separate agreements on Gibraltar have been adopted:

  • Gibraltar's airport and port have become border control zones. On the one hand, local border guards operate there under British law, on the other - Spanish customs under EU rules.
  • Gibraltar has agreed to use the standard external tariff and the EU's customs laws, i.e., to apply European Union taxes on VAT and excise duties.
  • An agreement was signed for cross-border employees, making crossing the border easier to get to work. 
  • An agreement was signed between the UK and Spain, under which customs conditions for importing goods remain the same as before Brexit.

How to open a company in a prestigious offshore

Contact IT-OFFSHORE to register an offshore company in Gibraltar in 2023.

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