Gibraltar combines strong economic growth and a favourable tax regime with a warm, Mediterranean climate and vibrant lifestyle. It enjoys a solid global reputation for stability and efficiency with robust infrastructure and prudent regulation. Gibraltar’s small size and close-knit community delivers considerable speed to market with easy accessibility to key decision makers in the jurisdiction. For these reasons, and many more, Gibraltar hosts several major corporations spanning a wide variety of industries from insurance to gaming, property to crypto, and is the jurisdiction of choice for international businesses looking to establish a strategic European presence.
About Gibraltar
Gibraltar is a British Overseas Territory located on the southern tip of Spain with a population of around 33,600. The tiny peninsula, a mere 6.8 km² in area, separates the entrance of the Mediterranean Sea from the Atlantic Ocean. Gibraltar shares a single land border with Spain, with Morocco situated 14.3 kilometres away across the Straits of Gibraltar. Its most prominent feature is the Rock of Gibraltar, a towering limestone monolith rising 426 metres above sea level.
Throughout its often-turbulent history, Gibraltar’s strategic importance, economic status and prosperity have rarely wavered. Today it boasts a diversified services economy encompassing finance, insurance, shipping, gaming and fintech. With an average of 300 days of sunshine per year, Gibraltar also benefits from strong tourism.
Gibraltar has been a British territory for over 300 years. It employs a legal system based on English Common Law and uses the Gibraltar Pound, which is at parity with the British Pound. It shares the Central European Time Zone (UTC+1) and, as with the rest of mainland Europe, traffic drives on the right.
Gibraltar left the EU in January 2020 alongside the UK. A post‑Brexit agreement framework reached in 2025 aims to create a more fluid land border with Spain and dual passport controls at Gibraltar Airport, pending final ratification. Gibraltar’s status as a British Overseas Territory gives it autonomy to pass its own laws. It is outside the EU Single Market, Customs Union and Schengen Area, but the 2025 framework envisages Schengen-style facilitation for persons at the border once implemented.
Gibraltar is exempt from EU VAT and has full autonomy over tax policy. The jurisdiction maintains alignment with relevant UK and international standards and, where appropriate, with EU directives such as GDPR. Proposals for a domestic “transaction tax” on goods have been discussed as part of the 2025 framework, with details to follow through formal legislation.
Gibraltar’s hybrid identity—distinctly British yet Mediterranean—defines its unique culture and lifestyle. The combination of legal stability, cultural vibrancy and favourable climate makes it an attractive place to live and work.
Business Environment
Gibraltar permits foreign shareholders, welcomes investment and places no restrictions on capital imports or repatriation of earnings. Some industries, however, require specific licences, including financial services, gaming and construction.
Post‑Brexit, Gibraltar’s economy remains resilient. Headline indicators such as GDP and employment remain strong by international standards. The Gibraltar Financial Services Commission (GFSC) continues to regulate the financial sector, working with global agencies including the OECD, IMF and FATF. Gibraltar regularly updates its financial regulation and AML frameworks in line with UK and international best practice.
Economy
Gibraltar’s economy is almost entirely service-based, with very low unemployment. It benefits from a combination of native and cross‑border labour commuting daily from Spain. The jurisdiction has shown remarkable resilience through recent global economic challenges. Current GDP and GDP per capita figures are published annually by the Government of Gibraltar.
Gibraltar’s currency, the Gibraltar Pound, is minted locally and shares parity with the British Pound. Both are legal tender.
Legal System
Gibraltar has its own Parliament and judiciary, though lawyers generally qualify first in the UK. The distinction between barristers and solicitors is less pronounced than in the UK. Those called to the Bar of England and Wales must obtain a Gibraltar law certificate from the University of Gibraltar before practising locally.
Setting Up a Business in Gibraltar
Before establishing a business, it is essential to consider whether income will be accrued in or derived from Gibraltar, as its tax regime is territorial. The nature of the business determines whether additional licences are required (for example, gaming or financial services).
Types of Entities
- Partnerships – Joint ventures sharing capital, costs and risks.
- Limited Liability Partnerships (LLPs) – Provide liability protection between partners.
- Companies – Distinct legal entities offering limited liability. They can be public (PLC) or private (Ltd). Directors need not be resident, though management and control in Gibraltar supports tax residency.
- Protected Cell Companies (PCCs) – Allow segregation of assets and liabilities into separate “cells.” Common in insurance and finance.
- Trusts – Used for estate planning and asset protection; exempt from tax if income and beneficiaries are non-resident.
- Foundations – Independent legal entities holding assets in their own name, governed by the Private Foundations Act 2017. Gibraltar‑derived income is taxed at the prevailing corporate rate.
Funds
Gibraltar supports both Private Funds and Experienced Investor Funds (EIFs). Private Funds are limited to 50 investors and exempt from licensing. EIFs are regulated collective investment schemes for experienced investors, registered with the GFSC. Crypto strategies are typically structured under the EIF framework, subject to risk and custody requirements.
Tax in Gibraltar
Gibraltar has a growing number of Tax Information Exchange Agreements and full OECD, IMF and FATF “white list” status. It participates in FATCA, CRS and other global transparency regimes.
Income Tax (Individuals)
Individuals are taxed on income earned in Gibraltar from 1 July to 30 June. Gibraltar operates a PAYE system. Taxpayers may use either the Gross Income‑Based or Allowance‑Based system, whichever is more beneficial.
Corporate Tax
The corporate tax rate is 15% (since 1 July 2024) on profits accrued or derived in Gibraltar. Utility companies pay 20%. A company is considered resident if managed and controlled in Gibraltar. Income earned outside Gibraltar is generally exempt. Draft 2025 amendments strengthen anti‑avoidance powers.
Other Taxes
- Inheritance, Estate and Wealth Tax – None.
- Capital Gains Tax – None, though property or property‑holding entity disposals may be treated as income in specific cases.
- Double Tax Treaties – None; unilateral reliefs may apply.
- Stamp Duty – Payable only on Gibraltar real property transfers and share capital creation (£10 flat fee).
- Dividends, Interest, Royalties – No withholding tax.
- Gaming Tax – 1% on income, capped at £425,000.
High Net Worth Individuals
Individuals with net worth exceeding £2 million may apply for Category 2 status. Only the first £80,000 of assessable income is taxable, subject to a minimum tax of £22,000 and a maximum of £29,800. Applicants must own qualifying Gibraltar property but are not required to spend a minimum time in residence.
Banking
Gibraltar’s banking system is reputable and business‑friendly, subject to strict KYC and AML procedures. Local banks, including Turicum Private Bank and Gibraltar International Bank, provide services to both traditional and fintech clients. Account onboarding remains thorough and can take time.
Infrastructure
Gibraltar maintains robust telecommunications infrastructure, including fibre broadband and 4G/5G coverage. The international airport connects to UK cities including London, Manchester and Bristol, and offers seasonal or charter flights. Dual UK/Spanish border controls at the airport are planned under the 2025 framework. The Port of Gibraltar serves cruise, cargo and naval traffic.
Gibraltar offers modern hospitality and conference facilities such as the Sunborn Yacht Hotel and the World Trade Center. The University of Gibraltar and Gibraltar Stock Exchange (GSX) contribute to the jurisdiction’s educational and capital markets landscape.
Key Industries
- Shipping – One of the Mediterranean’s largest bunkering ports and a hub for ship registration and repair.
- Finance & Insurance – Home to leading global firms and a major domicile for UK‑facing insurers.
- Property – High demand and limited supply keep values strong; certain property gains may now attract tax.
- Gaming – A world‑renowned licensing hub for online gaming and software providers under the Gambling Act 2005.
- Fintech / DLT – Regulated under Gibraltar’s 2018 Distributed Ledger Technology Regulations; guidance continues to evolve for custody and prudential oversight.
Current Opportunities & Future Prospects
The 2025 UK‑Spain/EU framework is a turning point for Gibraltar, promising an open border, dual airport controls and closer customs cooperation. It does not affect British sovereignty. Implementation is expected to improve labour mobility, tourism and trade. Gibraltar remains committed to high regulatory standards, anti‑avoidance rules and substance requirements.
The introduction of a transaction tax on goods will align Gibraltar more closely with EU norms without adopting VAT. This, alongside strengthened financial regulation and DLT innovation, positions Gibraltar for sustainable long‑term growth.
Gibraltar – Not Just for Business
Gibraltar offers a high standard of living, excellent schools following the UK curriculum, and a safe environment. The University of Gibraltar provides local higher education opportunities. The territory’s cultural mix, scenic beauty and lifestyle make it an appealing home for professionals and families.
Key Benefits of Gibraltar (2025)
- Stable, business‑friendly government and Common Law system.
- 15% corporate tax rate on Gibraltar‑derived profits; no inheritance, wealth, or general capital gains taxes.
- No withholding taxes on dividends, interest or royalties.
- Consistently strong economy with very low unemployment.
- Modern infrastructure, high‑speed connectivity and world‑class port and airport facilities.
- Global reputation for strong regulation and innovation in finance, gaming and fintech.
- English‑speaking, Mediterranean lifestyle with favourable residency regimes for high‑net‑worth individuals.
Looking to Do Business in Gibraltar?
Hassans, Gibraltar’s largest law firm, trusted since 1939, is a Legal 500 EMEA Top Tier Firm with expertise in corporate and commercial law, M&A, litigation, property, trusts, tax and fintech. To speak with our team, please contact us.
Market Overview
By Hassans