Benefits of Gibraltar's tax system for foreign businesspeople
There are some peculiarities of registering a company in Gibraltar in 2021. This jurisdiction is small, but of strategic importance. The territory is considered to be low-tax and provides favorable conditions for non-residents to open a company.
The basis of the economy in the territory is made up from tourism and income from offshore enterprises. Gibraltar's tax system is especially attractive to foreign businesses. To clarify the nuances of opening a company in Gibraltar, contact our experts at IT-OFFSHORE.
Features of taxation
Many businesspeople are interested in Gibraltar's tax system in 2021. This jurisdiction ceased to be considered an offshore zone in 2014. The corporate tax rate in the territory is 10%. Most of the jurisdiction's income comes from tourism activities and the financial sector.
Registering a business here is especially relevant for non-residents, as in this case, the corporate tax rate will be 0%. In order for a firm to have tax-exempt status, it must not conduct business activities in the territory or have deposits in local financial institutions. In this case, it will be possible to avoid paying VAT and levy on dividends, inheritance, and capital gains.
Other advantages of opening:
- There are no state tax audits;
- It is possible to use nominal service;
- It is possible to open an account in many countries;
- Offshore registration procedure is relatively fast;
- There are no currency controls.
Most often businesses from abroad register gambling business or IT companies, firms specializing in distance selling, etc.
Requirements for companies
Before you start registering a firm, you need to choose the most appropriate legal form. It is possible to open a business in the form of a partnership, private or public company with limited liability, as well as one with share capital.
Non-residents have the right to register branches or representative offices. It is important that some forms of business require a special license. A non-resident company will have tax-exempt status if the beneficiaries and directors are not resident in the territory.
The registration procedure includes several steps. First, the name is checked at the registry, and then a package of documents is prepared. Duties and fees must be paid. Then the information is entered into the register and the founding documents are received.
Jurisdiction has a good reputation, due to which local companies can become customers of many banks. It is important that the ownership structure and business development plan are as transparent as possible. It is possible to open an account either in person or remotely, depending on the chosen financial institution.