Gibraltar Overview

Gibraltar is a British Overseas Territory, which means that it is under the sovereignty of the UK but it is not a part of the UK itself.

It is located near the southernmost point of the Iberian Peninsula. Its total land area is 2.6 square miles. Spain is the neighbouring country to the north. Gibraltar was ceded to Great Britain by Spain in 1713 under the Treaty of Utrecht and Spain has been trying to get it back ever since however the British government is committed to respecting the wishes of the Gibraltarians, as they generally oppose annexation by Spain or any shared sovereignty by Spain.

Gibraltar has been used by the British Armed Forces in the past and became an important naval base for the Royal Navy. It played a notable part in the battle of Trafalgar and its strategic value increased with the opening of the Suez Canal which meant that it controlled the important sea route to the other UK colonies like India and Australia.

On 10 September 1967, a referendum was held in which Gibraltarians were asked whether they wished to be under Spanish or British sovereignty. The overwhelming majority voted in favour of remaining under British sovereignty. Another referendum in 2002 rejected a joint sovereignty. This has cause strained relations between Britain and Spain. In 2006, talks were held in Cordoba between UK representatives, Gibraltar and Spain, which resolved many issues and finally removed many of the restrictions previously imposed by Spain.

The Head of State of Gibraltar is Queen Elizabeth II. The Queen is represented by the Governor of Gibraltar. The Governor’s role is mainly ceremonial although he appoints the Chief Minister and the government ministers. The unicameral parliament consists of seventeen elected members and is appointed for a 4-year period however the UK retains the responsibility for defence, foreign relations, internal security and financial stability.

The famous Rock of Gibraltar is made of limestone. It is 426 meters high and it contains tunnelled roads, which are mainly used by the military and are closed to the public.

Due to the lack of natural resources and water, large concrete or natural rock water catchments are used to collect water. Other methods used are two desalination plants, a reverse osmosis plant and a multi-stage flash distillation plant.

Traditionally the British military dominated the economy. This has diminished over the last couple of decades and Gibraltar currently has an extensive service based economy dominated by financial services and tourism. Many British and International banks have operations based in Gibraltar. Business is attracted by the regulated jurisdiction with its favourable corporate tax regime. Tourism and shopping are encouraged due to goods and services being VAT free.

The monetary unit of Gibraltar is both the pound Sterling and the Gibraltar pound. Notes issued by the government of Gibraltar are in circulation in Gibraltar but they are not accepted in the UK, however, sterling currency notes issued by the Bank of England are accepted in Gibraltar. Euros are also unofficially accepted.

Gibraltar is a member of the European Union.

Gibraltar is one of the most densely populated territories in the world. It has a population of 28, 875. The growing demand for space has lead to land reclamation as a solution. Gibraltarians are made up of the descendants of all the European immigrants that came to the country over the past 300 years and consists of a multi-cultural and multi-racial society with many different influences. The official language is English however Spanish is also widely spoken and many people are bilingual. Many other languages are also spoken due to the diversity of the population.

Gibraltar Non-Resident Companies Key Facts

• Name restrictions: Sensitive words include “Bank”, “Assurance”, “Insurance”, “Association”, “Royal”, “Imperial”, “Trust”, “Trustee”, “Holdings”, “Group”, “Europe”, “Gibraltar”, “International”. Any names that are similar or identical to existing company names are not permitted. Any name that suggests royal or government patronage will be rejected. Any name that implies an activity associated with the banking and finance industry is likely to be rejected.
• It takes approximately 5 - 8 days to incorporate a company with a requested name.
• Gibraltar non-resident companies are not subject to Gibraltar taxation provided it is owned by non residents, does not trade or derive income from within Gibraltar and does not remit income for withdrawal in Gibraltar. Companies receiving income outside Gibraltar will not be liable to tax in Gibraltar, unless such income is paid to owners in Gibraltar. There is no withholding tax on dividends paid to non-residents or on interest payments when the loan is provided outside of Gibraltar. There is no capital gains tax, sales tax or VAT. There is no wealth tax or inheritance tax. There is no capital duty on share transfers. There are no exchange controls and there are not limitations to transfer funds into and out of Gibraltar. No tax is applicable on foreign income.
• The standard currency is usually Sterling, but any other convertible currencies are permitted.
• The minimum authorised Share Capital for a Gibraltar Company is GBP £100 (eg. 100 shares of GBP £1 each). The minimum issued Share Capital in a Gibraltar Company with a Share Capital of GBP £100 divided into 100 shares of GBP £1 each would be one share of GBP £1.
• The minimum number of Shareholders is 1. The Shareholder may be the same as the Directors
• The Register of Shareholders is available on public file.
• Shareholders’ meetings can take place anywhere in the world.
• Bearer shares are permitted however they must be deposited in Gibraltar.
• The minimum number of Directors is 1. Corporate Directors are allowed.
• Directors’ meetings can take place anywhere in the world.
• Directors’ details are available to the public.
• A resident company Secretary is required which we will provide.
• It is required to file annual returns for Gibraltar non-resident companies.
• Filing accounts is required but in most cases abridged, non-audited accounts are acceptable. Audited accounts are only required for public and large companies. Accounts are not accessible by the general public.
• Beneficial owners are not disclosed to the Registrar.
• Changes in domicile are permitted.