Fund Setup in Gibraltar: Unlocking Investment Opportunities

Setting up an investment fund in Gibraltar offers a unique blend of tax efficiency, regulatory stability, and strategic market access. Whether you are a fund manager, institutional investor, or entrepreneur, Gibraltar provides a robust financial ecosystem to support your investment goals.

Why Choose Gibraltar for Fund Setup?

Gibraltar stands out as a premier jurisdiction for fund establishment, offering several key advantages:

1. Tax Neutrality & Efficiency

Investment funds in Gibraltar benefit from a 0% tax rate under Rule 3(17) of the Income Tax Rules, covering capital gains, interest income, securities trading, financial instruments, real estate, and distributions. With no VAT, withholding tax, or inheritance tax, investors can maximize their returns.

2. Supportive Regulatory Framework

Funds operate under a well-defined legal structure governed by the Gibraltar Financial Services Commission (GFSC), ensuring a transparent and business-friendly environment.

3. Fast & Cost-Effective Setup

Gibraltar offers one of the most efficient and cost-effective fund setup processes globally, reducing the time-to-market for fund managers.

4. Established Financial Ecosystem

Backed by the Gibraltar Funds and Investments Association (GFIA), the jurisdiction boasts a deep network of legal, audit, and compliance experts.

5. Strategic Market Access

Located at the crossroads of Europe and Africa, Gibraltar maintains strong ties to the UK, providing unique opportunities for global investors.

Fund Types in Gibraltar

Investment funds in Gibraltar can be structured to meet various investor needs and regulatory requirements. Below are the main fund categories:

1. Private Funds

Private funds are designed for a limited number of investors (maximum 50) and operate with minimal regulatory requirements. These funds are ideal for:

• Friends & family investments
• Family offices
• Startups building a track record before transitioning into an EIF

Key Features:

• Restricted to an identifiable category of investors
• No mandatory audit, banking, custodian, or directorship requirements
• Can be structured as Limited Companies or Limited Liability Partnerships (LLPs)
• Eligible to convert into an EIF after 12 months

2. Experienced Investor Funds (EIFs)

EIFs cater to sophisticated investors, requiring a minimum investment of €100,000. They are subject to GFSC regulation, ensuring investor protection and fund integrity.

Key Features:

• No limit on the number of investors
• Can be structured as Limited Companies, LLPs, or Protected Cell Companies (PCCs)
• Mandatory IFRS audit and banking/custodian arrangements
• Requires two EIF-approved directors
• AIFMD opt-out available, with post-launch notification to the GFSC

Private Fund Structures

Private funds in Gibraltar offer tax efficiency, flexibility, and reduced regulatory burdens. Common structures include:

1. Private Fund (Limited Company)

• Traditional corporate structure with non-voting participation shares for investors
• Fund holds voting shares and acts as the Corporate Investment Director
• Investors participate through segregated share classes, allowing multiple trading strategies

2. Limited Liability Partnership (LLP)

• Provides limited liability while maintaining tax transparency
• Shared decision-making among partners
• Suitable for professional investment teams

EIF Structures

EIFs offer a regulated framework for sophisticated investors. Available structures include:

1. Standalone EIF (Limited Company)

• Managed by a corporate director
• Requires two EIF-approved directors, a fund administrator, and an auditor
• Investors participate via shares
• Exempt from capital gains and investment income tax

2. Limited Liability Partnership (LLP)

• Combines limited liability with tax transparency
• Suitable for professional investment teams

3. PCC EIF (Protected Cell Company)

• Allows legal separation of assets and liabilities within distinct cells
• Each cell operates independently, offering risk segregation
• Ideal for multi-strategy funds

4. PC LP EIF (Protected Cell Limited Partnership)

• Combines tax benefits of an LLP with the asset segregation of a PCC
• Investors can choose specific cells
• Taxed at the partner level

Steps to Setting Up a Fund in Gibraltar

Establishing a fund in Gibraltar follows a streamlined process:

Step 1: Confirm Fund Structure

• Determine legal structure, fund name, directors, and shareholders
• Prepare KYC documentation

Step 2: Engage Service Providers

• Appoint fund administrators, auditors, and legal teams

Step 3: Finalize the Prospectus

• Draft the Private Placement Memorandum (PPM) outlining:
  • Investment objectives & strategy
  • Investment restrictions
  • Fee structure (management & performance fees)

Step 4: Open Bank & Custodian Accounts

• Set up accounts with reputable banks, custodians, and exchanges

Step 5: Fund Launch

• Conduct the official launch meeting and finalize documentation

Step 6: GFSC Submission

• Submit required documentation, including:
  • Due Diligence Materials & Constituting Documents
  • Legal Opinion
  • GFSC Registration/Application Form & Fee

How TAG Can Help

At TAG, we specialize in facilitating fund setups in Gibraltar, guiding clients through the regulatory landscape, structuring investment vehicles, and ensuring seamless compliance. Our expertise spans fund administration, audit, compliance, and tax advisory, providing you with a one-stop solution to establish and manage your investment fund efficiently.

Get in Touch Looking to set up a fund in Gibraltar? Contact TAG today to explore how we can support your investment strategy.

📧 Email: info@tag.gi
📞 Phone: +350 225 01252
📲 WhatsApp: +350 540 01546
🌍 Website: www.tag.gi
🏢 Address: Suite 8, Block 2, Watergardens, Gibraltar

- Regulated by the Gibraltar Financial Services Commission