Company formation in Gibraltar

Before deciding to set up a new company in Gibraltar, read the information below to understand the characteristics of a Private Company Limited by Shares (LTD):

Shareholders: at least one shareholder (can reside from anywhere in the world).

Director: at least one director (can reside from anywhere in the world).

Company Secretary: at least 1 company secretary.

Minimum Share Capital: there is no minimum capital requirement.

Liability: the shareholders’ liability in a Gibraltar company is limited to the amount of shares respectively held by them.

Accounting: an annual return must be filed annually with the Companies Registration Office regardless of whether the company has traded or not.

The standard CIT rate is 15%.

The CIT in Gibraltar is charged on the income accruing in or derived from Gibraltar, on the profits or gains of a company or trust from any trade or business corporation.

Utility companies or companies enjoying a dominant market position are liable at a higher rate of 20%. Included in the latter are companies providing electricity, fuel, water and telephony services.

The standard rate of PIT is 20%.

Individuals have the choice of being taxed under either an Allowance Based System (ABS) or under a Gross Income Based System (GIBS) and will be assessed for tax under the system that results in the lower tax.

Individuals who have opted to be taxed under the ABS will pay tax on their taxable income (assessable income less allowances) at the following rates:

1. Individuals with gross assessable income not exceeding £100,000:

• the first £4,000 of taxable income - 15%;
• the next £12,000 of taxable income - 18%;
• balance - 40%.

2. Individuals with gross assessable income exceeding £100,000:

• the first £4,000 of taxable income - 16%;
• the next £12,000 of taxable income - 19%;
• balance - 41%.

Individuals who have opted to be taxed under the GIBS will pay tax on their assessable income at the following rates:

1. Individuals with gross assessable income not exceeding £25,000:

• the first £10,000 of assessable income - 7%;
• the next £7,000 - 21%;
• balance - 29%.

2. Individuals with gross assessable income exceeding £25,000 & up to £100,000:

• the first £17,000 of assessable income - 17%;
• the next £8,000 - 20%;
• the next £15,000 - 26%;
• balance - 29%.

3. Individuals with gross assessable income exceeding £100,000:

• the first £17,000 of assessable income - 18%;
• the next £8,000 - 21%;
• the next £15,000 - 27%;
• the next £65,000 - 30%;
• balance - 27%.

There is no VAT in Gibraltar.

Double taxation avoidance agreements in Gibraltar: Spain, United Kingdom.