Even amid the recent major change that the UK’s departure from the European Union (EU) represents, Gibraltar continues to be an excellent place to do business.
Whether you are hoping to become more tax efficient, establish yourself in a stable economy, or benefit from access to both the UK and EU markets post-Brexit, here are five reasons to set up a company in Gibraltar, plus some expert Gibraltar business start-up help.
- Access to UK markets
Gibraltar’s status as a British Overseas Territory enables firms licensed here to continue accessing UK markets in the same way as they did prior to Brexit. The UK and Gibraltarian governments have brought forth legislation to establish aligned standards and unrestricted market access for services provided between Gibraltar and the UK.
- Safe relationship with the EU
Not only does Gibraltar enjoy access to the UK markets, but in part due to its close proximity to Spain, Gibraltar will likely become part of the Schengen area. Talks have recently been underway about incorporating the British Overseas Territory into Schengen, which would give Gibraltar residents the right to passport-free movement across the 26 European countries within the agreement.
This means that if you set up your business here, using our specialist Gibraltar business start-up help, you could soon be in a position to provide your services to both the UK and EU markets with little-to-no barriers or ‘red tape’.
- Stable economy
The economy of Gibraltar is very stable and resilient, having diversified from its traditional dependence on British military activity towards service provision. The modern economy of Gibraltar mainly specialises in four main service sectors – namely tourism, shipping, financial services, and online gaming.
Although most of the population of Gibraltar is fluent in both Spanish and English, business in the territory is predominantly conducted in English using the pound sterling (GBP).
In addition to benefitting from the British system, businesses in Gibraltar can benefit from a diverse workforce. In fact, almost half of total employment in Gibraltar consists of Spanish residents. It is unsurprising, then, that the local unemployment level sits at only 1%.
- Low taxation
The taxation system in Gibraltar is highly advantageous. Every company in Gibraltar is subject to a 12.5% tax on taxable profits, or 20% for utility, energy, and fuel supply businesses. Dividends, interest, royalties, and technical service fees are not subject to a withholding tax. There is also no capital gains tax, inheritance/estate tax, or wealth/net worth tax in Gibraltar.
- Tax incentives for residents
But the taxation benefits are not just applicable to your business – Gibraltar has residency programmes that boast liberal tax incentives, designed to attract people who have a high net worth and high-ranking executives with particular skills. If you think this applies to you, then what are you waiting for?
For more expert Gibraltar business start-up help, please feel free to get in touch with the TAG Consultancy team today to book your free consultation. Our start-up specialists are on hand to assist in the best way we can to launch and support the growth of your new business.