International, Cross-Border and Non-Resident Taxation UK-Spain

International, Cross-Border and Non-Resident Taxation UK-Spain

Gibraltar is not a tax haven; it is a low tax jurisdiction committed to transparency of information in relation to tax matters and cooperation with other tax authorities to eliminate tax evasion. Gibraltar is white listed by the OECD and as a member of the EU, Gibraltar is fully compliant with all EU directives. Gibraltar has numerous bilateral Tax Information Exchange Agreements (TIEAs) in place and has signed up to all international
initiatives in this area. In particular Gibraltar has signed the Multilateral Competent Authority Agreement (MCAA) on Automatic Exchange of Financial Account Information (currently signed by 51 countries and commonly referred to as Global FATCA), IGAs in respect of FATCA with US and UK and has implemented EU Directive 2011/16/EU on administrative cooperation in the field of taxation (sometimes referred to as EU FATCA).

On the 29th October 2014 Gibraltar passed the OECD Peer Review in respect of its procedures on exchange of tax information as “largely compliant” (equivalent to the rating received by UK and Germany).

The corporation tax rate is set at 10% for Gibraltar companies.

Gibraltar operates a territorial system of taxation referred to locally as the ‘accrued and derived’ principle, meaning that profits are only taxed when the profit making activity is within Gibraltar. If the profit making activity is outside of Gibraltar, then such profits would fall outside the scope of taxation.

There is no capital gains tax, withholding taxes nor VAT. There is no tax on the receipt by a company of Dividends. Interest income is not taxed unless lending is a trading activity or if the interest is derived from inter-company loans and is in excess of £100,000 p.a. Bank interest received is not taxable.

In addition there are tax incentives for staff, in particular where staff possessing specialist skills needs to be relocated to Gibraltar.

Contact your Lawyer

 +34 956 79 50 60 La Línea

+35 0200 61 061 Gibraltar


Ask us your question

9 + 11 =