Gibraltar – 2007 Review

Spurred in part by the fiscal requirements of the European Union, Gibraltar's decision to pursue a policy of "low tax" rather than "no tax" continues to make the jurisdiction attractive to international investors and its appeal has been enhanced by the announcement in the 2007 fiscal Budget of plans to steadily reduce corporate taxes over the coming three years to an eventual target level of between 10 and 12 per cent.

The timetable to reduce corporate taxes, announced by Gibraltar's Chief Minister, whose party returned to power for a historic fourth term in October, could even be accelerated. However, there has been disappointment in Gibraltar's financial and commercial communities that the bold new reduced flat rate in corporate tax of approximately 12 per cent that had been widely anticipated was not delivered in the 2007 fiscal Budget.