Why establish a fund in Gibraltar?
Gibraltar conforms to The Financial Services Commission (FSC) legislation which protects you from any financial loss, demonstrating Gibraltar’s willingness to avoid money laundering and monitor all its financial services providers. The extent of the FSC’s diligence is clear in the IMF evaluation on supervision of banking, insurance and anti money-laundering measures which was completed recently after a visit from the IMF.
The law in Gibraltar is based on the UK’s with some necessary local variations. Its highest court is the UK Privy Council and therefore the country’s laws are based on solid grounding.
Gibraltar’s tax regime allows various fiscal advantages both for the private investor and as an investment vehicle. Collective investment schemes are exempt from tax on their income and any dividends paid are free from withholding tax in Gibraltar so long as payment is made to a non-resident company or individual.
The complete absence of inheritance tax, capital gains tax and wealth tax is another advantage. Stamp Duty is payable on the initial share capital or on subsequent increases at a fixed rate of GBP10.
As an EU member, Gibraltar qualifies for the benefits of the European Parent Subsidiary Directive (EPSD). A scheme designed to remove taxes where a company establishes a subsidiary in another member state, it effectively waives withholding taxes between parent and subsidiary where the parent company holds a minimum stake in its subsidiary for a predetermined amount of time.
Setting up a fund in Gibraltar is easy, flexible and can be achieved within a reasonably short time frame. The application procedure has now been simplified to allow self-certification, resulting in automatic qualification within 14 days, once the FSC receives notification that the fund has been launched. You will need to appoint an established local lawyer to ensure the requirements are confirmed, along with two Gibraltar Directors, authorised by the FSC to be Custodians or Brokers. Finally you’ll need an FSC regulated Gibraltar Fund Administrator to run your fund.
It is possible to re-domicile an existing fund currently in another jurisdiction and move it Gibraltar.
Its geographic location, right on the southern tip of Spain, makes Gibraltar ideally situated for many investors resident in Spain or elsewhere in the EU.
Gibraltar is well served by a modern communications infrastructure and an international airport.
As a highly regulated, internationally recognised EU Financial Centre, Gibraltar indeed deserves more than a cursory glance when it comes to seeking a sound and competitive fund solution.