The Gibraltar Product

Why Gibraltar?

“Gibraltar is a modern, vibrant jurisdiction with a robust, prosperous economy”

The following points should help make that decision to make an investment in Gibraltar or conduct business in or from a jurisdiction of internationally noted quality:

• An excellent hub for the establishment of international business in areas as diverse as Financial Services & E-Commerce, Trade & E-Trade, Communications & E-Gaming, Maritime Services, Light Industry, Property Development and Tourism & Transport.

• Highly-developed, business services infrastructure where it is possible to passport an EU licence in financial services such as insurance and re-insurance, EU-wide pensions, banking and funds administration, amongst others.

• Distribute competitively priced VAT-free goods and services to the markets of the EU and Africa.

• Invest or conduct business in a quality low-tax jurisdiction with a profit-oriented capital base at low levels of corporate tax, all in a stable currency – £ Sterling GIP – with few restrictions in moving capital or repatriating dividends.

• A legal system modelled on the English structure contributes to making Gibraltar the well regulated (but not over regulated), globally acclaimed jurisdiction it is today.

• A variety of interesting fiscal products ranging from lucrative funds’ development and administration to customised financial solutions such as international tax planning strategies, along with monthly tax-free registered debentures – stable bonds with an attractive non-taxable fixed rate.

• A high-quality environment for corporate accommodation as well as modern services and workspace for manufacturing and distribution, together with an effective, advanced communications infrastructure (necessary business support services are also available on site).

• Start-up incentives, including a start-up rate of 10% applicable to any new businesses established in Gibraltar after 1 July 2009.

• A stable political and economic environment, which is already being enjoyed by established investors and customers.

• Benefits from EU membership, including access to the EU financial services’ market

• Enhanced, weather-protected port facilities outside of the European Customs Union make Gibraltar ideal for cruise liners and cargo handling/logistics (Gibraltar is one of the world’s leading bunkering centres).

• An international airport with scheduled flights to the United Kingdom in conjunction with proximity to Spanish regional airports at Malaga, Seville and Jerez

• One of Europe’s most advanced fibre-optic communications networks, offering quality solutions for business requirements.

• A multi-skilled, suitably qualified workforce with training assistance to update skills in accordance with the investments opportunities that arise

• A harmonious, multicultural and English-speaking environment, as favoured by most international businesses, providing pivotal access to regional markets in Mediterranean Europe and North Africa (the majority of people in Gibraltar are at least bilingual).

• The Common Agricultural Policy, Value Added Tax and the Common Customs Tariff do not apply to Gibraltar since it falls outside the EU Customs Union. Classified as a developing country, Gibraltar is entitled to preferential trade tariffs under the Generalised System of Preferences (GSP).

• Legislation is in place to encourage High Net Worth Individuals (HNWIs) and High Executives Possessing Specialist Skills (HEPSS) to establish tax residency in Gibraltar, affording them the opportunity to have the tax payable on their income restricted to a capped amount.

• Gibraltar relishes from warm summers and mild winters – 300 days of sunshine – and a high quality of life, with a wide variety of sporting, cultural and entertainment facilities, both in and around Gibraltar (an enviable lifestyle with the professionalism and vibrancy of a modern location).
In short, whatever the reason for establishing a business activity in Gibraltar, the Rock has something for everyone.

The Gibraltar Product

“Gibraltar is internationally acclaimed as a successful, buoyant and mature centre with highly developed infrastructure and proficient human resources that meet the requirements of those seeking to establish a sound British/European operation”

As a product, Gibraltar PLC has a lot to offer to the global marketplace, summarised in the segments that follow.

Financial Services

“Gibraltar’s financial services is a thriving sector and one of the main pillars of the economy, which is well placed for further growth and development”

• The Finance Centre – the Finance Centre is well placed to continue to develop and grow on the back of the new tax regime. A new era now unfolds for Gibraltar’s finance centre, with the implementation of an enticing fiscal package that includes exceptional tax statuses for Qualifying individuals, HNWIs and HEPSS, low income-based tax rates as well as a 10% Corporation tax rate as from 1 January 2011.

• Taxation – Gibraltar offers a good number of favourable tax incentives:

- Tax efficient opportunities for structuring businesses, with a 10% Corporation tax rate
- Special tax statuses for Qualifying individuals, HNWIs and HEPSS
- No Inheritance Tax or Estate Duty
- No Wealth or Gift Taxes
- No Capital Gains Tax
- No VAT or other Sales Taxes
- Minimal Stamp Duty rates
- No tax on Bank interest
- No tax on listed investment income
- Import Duty mostly at rates 0% - 12%
- Online Gaming Tax is levied at a rate of 1% of relevant income, i.e. gaming yield for online casinos and bets placed for online bookmakers, capped at £425,000 with a minimum payable of £85,000.

• Passporting – Passporting enables companies established within an EEA territory to provide services anywhere within the EEA based on the authorisation they receive from the member state where they have their head office. Therefore, Gibraltar-based companies will be able to do business in EEA States either by setting up a branch in the appropriate territory or by providing particular services, without having the additional administration or cost of being obliged to establish a licensed presence in each of the individual territories where the services are to be provided.

The following services can be passported from Gibraltar:

- Insurance
- Insurance and reinsurance mediation
- Banking
- Investment Services
- Funds Management

• Domiciliation – A company may be domiciled in a jurisdiction other than that in which it is incorporated. This legislation enables insurance companies currently domiciled in other jurisdictions to re-domicile in Gibraltar, thereby gaining direct access to the European Economic Area.

• Legislative Status – Gibraltar is unique in its status as a modern, international financial centre located within the European Union but with a separate legislative structure based on British common law.

• Insurance Services – The creation of a single European insurance market allows benefits to both buyers and sellers of insurance products and services, particularly in the field of captive insurance operations.

• Trusts – The trust is widely used in Gibraltar as a tax-planning vehicle. Under Gibraltar Law, a trust enjoys exemption from Gibraltar Income Tax on income received by the trust where it is created by or on behalf of a non-resident person and the trust expressly excludes residents of Gibraltar as beneficiaries.

• Dividends – Except in the case where the income forms part of the company’s trading receipts, dividend income from companies listed on a recognised stock exchange is not taxable in Gibraltar. There is no withholding tax on dividends paid. However, a company must submit a return of any dividend paid within 30 days following the year end of each year of assessment. There is no liability to tax for dividends paid to a person who is not resident in Gibraltar. There is no tax on dividends paid by one Gibraltar Company to another. Dividends received from participating interests or from any subsidiaries in the participating interest group are not liable to taxation in Gibraltar. A participating interest exists where there is a direct or indirect shareholding of at least 10%, as from 1 January 2009, in a company registered in the EU (or a company that is registered in a country that has a bilateral agreement with the EU).

• Regulation – The Gibraltar Financial Services Commission is a member of the International Organisation of Securities Commissions and has attained ISO 9001(2000) certification.

Maritime Services

“Gibraltar is an important British/European ‘white list’, non VAT port that provides a comprehensive range of first-rate maritime services”

• The Port of Gibraltar – The Port of Gibraltar, which lies on the western side of the Peninsula at a latitude of 30°09’N and a longitude of 05°20’W, is perfectly positioned to service the over 90,000 vessels of all types and sizes that transit the Strait of Gibraltar. It is a non VAT Port that has developed into a one stop shop that provides a wide range of first class services. Quality and convenience are the keywords most often applied to Gibraltar by those who have benefited from the advantages of Gibraltar as a centre for ship services.

• A strategic geographical location with natural weather protection – Gibraltar is located at a crossroads of Mediterranean and Atlantic shipping lanes and is accessible by land, sea and air. It thus caters for regional and worldwide logistical flows. Furthermore, the natural protection afforded by the Rock is complemented by a system of sea defence works, comprising the Western Arm of the North Mole, the Detached Mole and the South Mole.

• Gibraltar is a bunkering giant – Gibraltar's bunkering companies supply all grades of cost-effective marine fuel from 30 CST to 380 CST and there are constant quality checks made by each company. Bunkers are normally delivered by barge while the vessel is at anchor in Gibraltar Bay, but they can also be delivered at berth in the harbour. A Bunkering Code of Practice, which was introduced by the Gibraltar Port Authority, also benefits the ship bunkering industry and its customers.

• Attractive cruise destination – As a cruise destination, Gibraltar benefits from a modern, enhanced cruise terminal facility with a level of service that matches international standards. Gibraltar offers top quality maritime services, a rich variety of attractions as well as a non-VAT port with duty-free shopping. The special character of Gibraltar – its history, geography and culture, together with its unique landscape and architecture – has made it a major draw for visitors.

• Yachting – With its spectacular setting, strategic location and top-class services, the jurisdiction is an established port-of-call and a popular base for yacht cruising. Yachting facilities in Gibraltar include a choice of three marinas (Marina Bay, Ocean Village and Queensway Quay) with a service and support network that would grace many larger ports. The Gibraltar Maritime Administration (GMA) is expanding its portfolio to include commercially operated yachts. Technical standards, comprising codes of compliance, govern these registrations. The GMA registers private pleasure yachts of any size.

• Off-port limits services for ships on the move – Gibraltar has various specialist operators with the expertise to provide off-port services en route between the Atlantic and the Mediterranean. Ships can receive provisions, stores, mail and charts – and even crew changes –without coming off charter or leaving international waters. Regarding crew changes, Gibraltar’s international airport and excellent road links makes it easy for crew to be flown or driven home at the end of their tour of duty.

• Ship registration – The Gibraltar Ship Register is an ideal choice for the prudent ship owner that wants to posses the prestige and reassurance of belonging to a British register and flying the Red Ensign without incurring high costs. It is a Category 1 Register within the Red Ensign Group and is the only EU Register, apart from the UK, in this category. Vessels flying the Gibraltar Red Ensign are British, recognised as EU ships, which have the same access to cabotage trade as any other EU member state – a clear advantage when trading in and around Europe.

• Security – The ISPS (International Ship & Port Facility Security) Code applies in Gibraltar. It is aimed at enhancing the security of ships and port facilities. The Cruise Terminal and Port itself is a restricted area with a visible but discreet security presence on the land side, while harbour waters are patrolled continuously by law enforcement agencies.

• Ship arrests – Gibraltar has built an enviable reputation as an ideal jurisdiction for ship arrests. It has become a world leader in this special area of maritime expertise thanks to a legal system known and respected for its speed and efficiency.

• Cargo handling/logistics – Gibraltar has a licensed stevedoring company, which provides an important service in terms of handling seaborne cargo. The transhipment of steel, general cargo and containers is carried out both at anchor and alongside. Warehousing and dedicated logistics operations are at hand to attend to any forwarding needs.

• Anchorage – Gibraltar has a good anchorage on its eastern side for vessels awaiting orders or in lay-up, while the Bay is normally used for delivering maritime services to vessels at anchor.

• Shipyard support/Ship repair – In addition to the major shipyard facilities of Gibdock, with a skilled team of bilingual project managers and craftspeople with world-class levels of experience for projects of all sizes, the Port is home to other companies offering ship repair and engineering services. Other firms deal with vessel repairs both at anchor and alongside. Riding squads are available for voyage repairs, leaving the ship at its next port-of-call. Urgently needed spare parts can usually be delivered within a matter of hours. Gibraltar’s international airport makes it simple for local companies to airfreight supplies.

• Ship agency – A large number of reputable ship agents are active in Gibraltar, dealing with ships of all types and sizes. These companies have all the experience and expertise needed to arrange port services tailored to the needs of individual ship owners. Many ship agencies also have offices in other regional ports for prompt and easy access to support services.

• Chandlery – There are local retailers and dealers that offer a full range of attractively priced provisions, supplies, equipment and maintenance products.

• Pilotage – This service is compulsory on arrival for berthing, unberthing and shifting anchorage.

• Waste agency – A treatment plant for ships waste is located on the North Mole. It can handle oily water (sullage) and grey waters both from vessels and land-based establishments. The plant meets the enhanced European Union discharge directive, which sets standards considerably higher than those of many existing facilities elsewhere.

• First-rate legal and financial services – World-class status has been claimed by Gibraltar’s maritime expertise in legal and financial services.

• Ferry service – A regular ferry service is available between Gibraltar and Algeciras.

• VTS system – Gibraltar’s VTS plays a key role in the safe and efficient handling of vessels, using the latest technology to keep a 24-hour watch on all shipping traffic including bunker barges. Officers can identify and track each vessel on their radar screens, which are updated 20 times per minute.

Tourism

“Gibraltar’s popularity with visitors is enhanced by its breathtaking scenery, varied wildlife, impressive architecture, friendly people and duty-free shopping experience”

• Location – Situated at the south-western tip of Europe, the Rock of Gibraltar is an impressive sight whether it is seen from land, sea or air. On one side, it is a perfect picture of serenity, with lazy, sandy beaches basking in the Mediterranean sunshine. On the other reside the bustling town, booming business centre and busy harbour of Gibraltar. Together, they offer an enviable lifestyle with the professionalism and vibrancy of a modern, thriving location. Added to this are the numerous, varied benefits that come naturally to a unique place that relishes from warm summers and mild winters – around 300 days of sunshine – and a high quality of life, with a wide variety of sporting, cultural and entertainment facilities, both in and around the Rock. Gibraltar is particularly an ideal place for those interested in ecotourism, historical sightseeing, leisure pursuits or duty-free shopping.

• Some of Gibraltar’s key advantages for visitors comprise:

- The majority of people in Gibraltar are at least bilingual, able to speak English and Spanish. Gibraltar is thus able to communicate, interact and cater for a wide variety of international visitors.
- The town centre is within walking distance of the cruise terminal, the airport and the land frontier.
- Main visitor attractions and amenities are clustered in a small area. This affords visitors the time to fit a lot of them into a typical cruise call or daytrip
- Wide choice of duty-free shopping
- Gibraltar has an enviably low crime rate and efficient British-style police and emergency services

• Accessibility by land, sea and air – Gibraltar is accessible via:

- The land frontier that is accessible 24 hours a day by car, bicycles or on foot
- The international airport
- Cruise-liners, ferry, yachts and other vessels

• Immigration – A valid EU passport is sufficient to gain entry; exceptionally visitors may require a VISA or similar, which can be sought by contacting the Civil Status and Registration Office on Tel: +350 20051725 or +350 20076945, if not send in an email via info@investgibraltar.gov.gi and an InvestGibraltar Officer will find out for you.

• Local amenities for visitors – Visitors to the Rock can make use of the following services:

- Internet Café for Internet access and networked games
- Public phones and toilet facilities
- Numerous hotels, bars and restaurants to appease the majority of tastes
- Transport offered by buses, car rentals and taxis, which also offer Rock Tours
- Numerous public parking amenities
- Modern General Hospital

• Proximity to North Africa and Spain – With growing international interest in African holidays and to Andalucía’s white villages, Gibraltar is an ideal base to launch day excursions, especially for the English-speaking people. There is potential to set up Morocco/Gibraltar or Spain/Gibraltar 2-centre holiday packages.

• Conference Centre – Its unique geography, pleasant climate and vibrancy as a modern, thriving location makes Gibraltar an ideal conference centre, with a good number of elegant hotels and suitable locations that can perfectly cater from small meetings and seminars to larger events and conventions.

• Tour Operators – Tour operators looking to invest in Gibraltar have a wide range of opportunities, as well as the use of Gibraltar’s resilient and first-class communications for those operators that would like to set up an online venture.

• Heritage Tourism – Gibraltar is steeped with over 100,000 years of history, which makes the Rock and the surrounding area one of the longest inhabited places in Europe. It has a friendly, local museum and library at the disposal of those that wish to investigate its mammoth history further. Numerous sites are of international importance and are ideal for those that look for short yet inspiring and worthwhile breaks. Walking Tours are also available, where participants go leisurely, fascinating walks to various sites of interest, including Rock and Fortress Tunnel Tours. There are likewise organised tours available for people that would like to visit the enchanting Lower St. Michael’s Cave. One of the sites visited during the tour is a beautiful underground lake and, fortunately for partakers, photography is permitted. Additionally, Gibraltar’s taxi drivers are typically experienced guides that possess an extensive knowledge of Gibraltar’s history, flora and fauna, the legends, the sites, and more importantly, where to take the best and most memorable pictures.

• Eco-Tourism – A large population of wild dolphins (three species) can be found in the Bay of Gibraltar. Whales migrate through the Strait of Gibraltar, including the largest mammal of all, the Blue Whale. The Botanical Gardens, and the Upper Rock Natural History and Heritage Park offer many botanical opportunities. Furthermore, as the Strait of Gibraltar is the narrowest crossing point for over 200 species of birds migrating to and from Europe and Africa, the Rock offers unrivalled bird watching opportunities. The Apes Den similarly provides visitors the rare opportunity to see and interact with semi-wild, charismatic primates. These animals are one of Gibraltar’s main attractions, drawing an increasing number of aficionados from all over the globe. The exploration of Gibraltar’s spectacular underwater world is another growing market, with more than 30 wrecks, reefs and pinnacles to choose from. Gibraltar thus offers excellent sport for beginners, experienced open water and wreck divers alike. Furthermore, visitors are pleasantly surprised to learn that Gibraltar has six beaches around its shoreline. Four of these, Sandy Bay, Eastern Beach, the picturesque village of Catalan Bay, and Western Beach, are sandy. Throughout the year, a delightful sub-tropical climate, consisting of pleasant winters, exquisite springs and shining summers, make the beaches and nearby amenities a popular attraction.

• Shopping – Gibraltar is a shopper’s heaven and still continues to offer duty-free goods despite changes elsewhere in Europe. Prices at the airport, notably for tobacco and spirits, are among the least expensive in the world. All shops are normally open by 10am and stay open all day through to 7pm on weekdays, though many close Saturday afternoons and remain closed on Sundays. Main Street, Gibraltar’s principal shopping thoroughfare, runs almost the length of town and the shops are filled with goods of all kinds at attractive prices. Turn off Main Street into the little lanes and alleys and there are even more shops. Items to look out for include jewellery, both precious and semi-precious, watches, fine glassware and porcelain, leather goods, perfumes, silks and cashmere. An electrical shopper’s paradise, Main Street shops also offer computers, cameras, optical equipment, TV’s, radios and hi-fi systems. Gibraltar is VAT-free, thus, people find that their money goes further when they visit the pedestrianised shopping area in the heart of the town, whilst enjoying the excellent shopping experience.

• Leisure & Recreation – There are no shortages of places to go out in Gibraltar, day or night. Whether wining and dining or going out for a simple drink is on the cards, there is an abundance of places to go. For those that enjoy good food and drink, Gibraltar’s café society and dining al fresco will not disappoint. International cuisine such as Italian, Indian, French, Moroccan, English, Spanish, Peking and Szechuan are just some of the options on the menus of Gibraltar’s first class restaurants. Gibraltar’s marinas and larger hotels all offer resident cocktail bars, providing comfortable and sophisticated surroundings.

For a more informal evening, choose from a selection of lively cosmopolitan wine bars or traditional pubs, if not opt to dance into the small hours at one of Gibraltar’s nightclubs or enjoy a flutter at The Gala Casino club, sited at the effervescent Ocean Village Leisure Island. Casemates Square, positioned at the entrance to Main Street and Irish Town, is filled with fashionable outdoor restaurants, cafés and bars, and is another hub of nightlife. The King’s Bastion Leisure Centre on Queensway also offers a wide range of entertainment facilities for all the family to enjoy.

• Sailing – It is difficult to imagine a better place to learn to sail than Gibraltar. The climate is mild and warm and the Bay is sheltered, though for the avid sailor, the open ocean is naturally close by. The sailing centres in Gibraltar offer a full range of courses, from Competent Crew to the most advanced RYA qualifications.

• Marriage – The fact that couples can get married in 24 hours and that there is no need for residency requirements, paired with a pleasant, stunning location that has a British legal system, are just a few of the many reasons why hundreds of couples travel to Gibraltar to exchange vows and get married. Gibraltar has stimulated demand and opportunities for a wide spectrum of businesses within the wedding and event-organizing sector, including paperwork, catering, photography, flowers and the bridal suite. The latter has triggered new developments such as hotels that have become potential wedding venues to cater for this market, which is increasing at an exponential rate.

Property Development

“Commercial and residential properties in Gibraltar have been developed to suit all pockets, ranging from the affordable to the luxurious, but always to a high standard”

• Development Aid – Any person or company planning or in the process of carrying out a development within Gibraltar can apply for a Development Aid Licence. The purpose of Development Aid is to essentially encourage investment in Gibraltar through the development of a project that will produce a tangible and significant benefit to the local economy. This Aid can be given in the form of:

- Tax relief on Capital Expenditure
- Import Duty Exemption (special conditions apply)

• Facade Improvement Scheme – Tax relief is provided to homeowners, landlords and tenants who improve the appearances of the facades of their buildings.

Trade, Funding and E-Commerce

“Gibraltar’s professional base and state-of-the-art, resilient infrastructure is of high quality and excellent repute, effectively catering for a wide range of e-business models to EU standards; the jurisdiction is a global leader in the virtual gaming industry”

• City Break Shopping – All goods available in Gibraltar are VAT free

• Tourism – 11.5 million visitors annually

• Funding Schemes – The schemes fund projects that focus on economic development:

- EU Funds
- 2007 – 2013 Operational Programme for Gibraltar
- 2007 – 2013 Objective 2 Programme
- 2007 – 2013 Objective 3 Programme

• Digital, satellite, mobile, Internet, ISDN; whatever is required, Gibraltar has it. Gibraltar’s infrastructure is of high quality and good repute. This also applies to its communications and IT. It is likewise highly praised for the availability of electronic services, its quality of regulation and its resilience. The bigger blue-chip companies acknowledge this and have made Gibraltar their online gaming hub, to the extent that Gibraltar has become a global leader in the virtual gaming industry.

• E-Commerce House – A business entity that is licensed by the Royal Gibraltar Post Office will be able to trade from Gibraltar and not be liable to pay corporation tax.

• E-Commerce Operations – Since manufacturing, packaging, delivery and fulfilment as well as several other physical operations can be outsourced to other countries, the use of Gibraltar as a convenient location for e-commerce is by no means limited to downloadable goods, services or transactions. However, the greatest cost and tax savings are indeed available to those businesses whose products can be delivered electronically. Examples of possible e-commerce operations include:

- Business advice and management
- Corporate services
- Data warehouse centres for processing and storing data
- Database management services
- Certification and verification services for business and consumer documents
- Server hubs for secure transactions and communications
- Design and Marketing services
- Financial services such as banking, investment, insurance, stocks and shares, etc.
- Market Research and Customer Relations services (E-CRM)
- Electronic publishing
- Online media services such as news, sport, etc.
- Online reservations for travel, entertainment, leisure, etc.
- Communications services
- Language translation services
- Education and Internet-based training (E-learning)
- Legal services
- Software research & development services
- Research and online information services
- Internet Service Providers (ISPs)
- Community and vertical portals
- Retail & wholesale businesses dealing in intangibles or intellectual property such as software or music
- Search engines and directories

• Capable Physical Infrastructure – All the physical facilities are in place to host a wide selection of e-business types to EU standards, including first rate for communications, telephone and online gaming operations. Gibraltar’s Internet Service Providers (ISPs) provide complete packages for businesses that require high quality solutions for their IT and communications requirements.

• Unique Location – Gibraltar’s unique situation as an associate member of the EU whilst being exempt from VAT makes it a valuable location for e-businesses.

• Telecoms Liberalisation – The Communications Act 2006 provides a level playing field with regards to communications and e-business/e-commerce establishment.

• E-Gaming – The establishment of several blue-chip gaming companies together with the flourishing financial services sector has meant that Gibraltar provides and maintains state-of-the-art technologies to cater for these businesses. Low tax is levied on annual turnover normally up to a capped limit. Only companies with a reputable standing and a proven track record in gaming are being licensed.

• Web Services – All of Gibraltar’s ISPs (Internet Service Providers) are able to offer professional hosting services. Whilst internet services can be supplied from and to virtually anywhere in the world, an internet business based in Gibraltar is able to engage efficient and experienced local specialists that provide a wide range of quality services, including professional web design, hosting and administration.

• Competent English Speaking Workforce – Though most people in Gibraltar are bi-lingual, this is a big incentive when structuring a technology-dependent business, as English is the main business language in Europe if not the world.