Mar 24, 2020

Frequently asked questions about non-resident companies in Gibraltar: registration, tax benefits, opening an account, cryptocurrency business, Gibraltar after Brexit – everything you wanted to know

Gibraltar is famous not only with its 300 sunny days a year, a good climate, private banking, but also low taxes, which allow international companies registered here to rapidly develop and prosper. 

This country is very popular among entrepreneurs from all over the world. Over 60 thousand companies are registered on its territory, which once again evidences the high demand for Gibraltar as a business center. It is particularly noteworthy that the number of companies is twice the number of population. In this article we have collected the most frequently asked questions about Gibraltar and non-resident companies.

Is Gibraltar a tax-free zone?

Non-resident companies in Gibraltar do not pay taxes. They are exempt from VAT, dividend tax, capital gains, inheritance tax. However, non-resident entities founded by foreign citizens, cannot conduct business in the jurisdiction, or transfer profits here or keep their funds in local banks. Otherwise, they will have to pay a corporate tax of 10%. But individuals pay up to 25% of the total effective personal income tax rate. 

How to use a Gibraltar company?

Gibraltar is a European business center, where tens of thousands of companies are concentrated in many business areas: gaming, real estate, trade, developing software, applications, providing consulting services, etc. If you do not conduct business in the jurisdiction, but, for example, engage in the sale of physical goods outside its borders, then you will not have to pay income taxes and others. 

 Gaming companies mostly prefer this jurisdiction as the local gambling license is reputably perceived all over the world. Today, 20 world-famous gaming companies are registered in  Gibraltar.

Can a company in Gibraltar be used for a cryptocurrency business?

Theoretically, you can do it, but in practice it is becoming increasingly difficult. After all, to work with cryptocurrency, you need a special license, which is not so easy to obtain in the country. And although the Gibraltar government was the first in the world to regulate the activities of companies that use blockchain (Distributed Ledger Technology), yet this did not facilitate the process of obtaining appropriate permission. Applicants for a DLT vendor license must first pay a business valuation request of £ 2,000 after which they will qualify for applying to obtain a license. By the way, over the past two years, only 12 licenses have been issued.

Does a Gibraltar company get a tax ID?

Yes. This is one of the indisputable advantages of registering a company in Gibraltar. What is a tax ID? These are requisites required for filing tax returns and reports. In addition, a tax ID is required to open an account with any bank in the world. And since non-resident companies are prohibited from keeping money in banks of Gibraltar, the presence of a tax ID opens the doors for them to any financial organization in the world where they can open a corporate account.

What is included in the standard package of services for registering a non-resident company in Gibraltar?

Our experts will be happy to take care of the entire process of incorporating a non-resident company in Gibraltar. At the same time, the package of services, other than the stand-alone registration of the company includes: an office in Gibraltar for one year, a corporate secretary for one year, tax ID, courier delivery, certified and apostilled documents, nominee services for one year, payment of fees for one year, filling in annual reports.

How long will it take to register a company in Gibraltar?

The time period required for registering a company in Gibraltar is up to seven business days after having paid for services and having selected a company name. You may also use the option of purchasing a company already incorporated, which will reduce the time by a few more days.

You will need to prepare the full package of documents, including: passports of beneficiaries, directors, shareholders, a business plan, proof of income, documentary proof of residential addresses. It is recommended that you provide detailed information about the future company in order to expedite the verification by the registration agent.

What are the reporting requirements for companies in Gibraltar?

Companies registered in Gibraltar are required to submit an annual report and provide up-to-date information on its directors and shareholders. If the company is small-scale, then it is required to submit its financial statements. For large companies, the provision of audited financial statements is mandatory.

Can I open a bank account in Gibraltar? 

There are more than ten banks operating in the jurisdiction that cooperate only with resident entities. It will be impossible to open an account for a non-resident company here. After all, such firms are prohibited from keeping funds in, or transferring money to local financial institutions. On the other hand, non-resident companies can open an account in any bank or payment system in the world, given the availability of a tax ID, as mentioned above. Explore our articles about opening accounts in different banks worldwide by a Gibraltar company.

How can a non-resident company in Gibraltar open a corporate account in other banks or payment systems worldwide?

Opening an account in any bank or payment system in the by a Gibraltar company world is a fast and relatively easy process, if you involve professionals to do it for you. Due to the high reputation of Gibraltar as a jurisdiction, international banks are willing to cooperate with companies that are registered in Gibraltar. All processes are usually carried out remotely.

To open an account, it is necessary to collect a package of documents, including documents for the company, passports of beneficiaries, proof of their place of residence, letters of recommendation, etc. The process usually does not take more than two weeks.

Opening an account in the world’s payment systems is much faster. Contact our consultants by the email address [email protected]  and we will provide information about our services in more detail. If necessary, our experts will select the most relevant bank or payment system specifically suitable for your company. 

What will change after Brexit for non-resident companies in Gibraltar?

On January 31, 2020, the UK decided to leave the EU. Gibraltar, being a colony of Great Britain, albeit with autonomous domestic politics and considering that Gibraltar is already outside the EU Common Customs Tariff Zone, i.e. non-resident companies cannot conduct business on its territory, hence, Brexit will bring no significant changes for such entities. Except that such companies can no longer be considered European.

However, Brexit is not going to happen in one day: the process will last no less than one year. It is expected that in the light of recent events Gibraltar will become even more independent in its choice of tax policy, which cannot but have positive implications for foreign investors. After all, they invest significant part of their funds in the economy of Gibraltar.

If you still have questions about non-resident companies in Gibraltar, do not hesitate to get in touch with our consultants at the email address [email protected].