Gibraltar. The tax haven of the European Union
Gibraltar is the only offshore centre that is part of the European Union. Gibraltar entered the European Union in 1973 under Article 227 (4) of the EEC Treaty. Gibraltar enjoys special treatment from the European Union.
According to Article 28 of the 1971 UK Assession Treaty Gibraltar is excluded from the EU VAT requirements and the EU Customs.
The above factors have always attracted foreign investors. Rapid development of e-commerce and European financial centers in the 21st century has boosted even greater popularity of Gibraltar companies.
Tax-free status of Gibraltar company
A Gibraltar company which is owned and controlled by non-Gibraltar residents is not subject to Gibraltar taxation. The non-resident status of the company is supported by the Gibraltar Companies Ordinance. If such company does not carry on any trade or business in Gibraltar, all taxes are avoided.
Keep in mind that profit remitted to Gibraltar bank is indeed subject to corporate income tax. Thus, in order to retain a tax-free status, the bank account must not be in Gibraltar.
Income that is remitted in Gibraltar bank account and/or from transactions with Gibraltar clients or suppliers will be taxed at Gibraltar tax rates.
Nominee services of directors and shareholder are customary for non-resident companies. In order to maintain tax free status, the directors and shareholder (irregardless, nominees or not) must reside outside Gibraltar. All board meeting must be located outside Gibraltar.
The company must have a local registered address and local corporate secretary.
A Gibraltar company must file annual financial statement. Although, non-resident companies enjoy easier fiscal requirement compared to domestic entities in Gibraltar.
HOW DARWIN TAX CAN HELP?
- Advise on structure and taxation opportunities - free of charge
- Remote company and bank account set-up
- Merchant account set-up for online businesses
- Preparation and submition of audited financial report