Gibraltar enjoyed wide coverage of its finance industry in a special report by the Financial Times last October.
Peter Caruana, Gibraltar's Chief Minister, described Gibraltar as a ..."European Union onshore financial centre with competitive tax rates."
The report echoed the fact that the 10% corporate tax rate which became effective on 1st January 2011 and the 18 tax information exchange agreements that have been signed, gives Gibraltar a new impetus in its drive to shed its tax haven mantra and re-branding as a transparent low tax jurisdiction.
The sectors touched upon were diverse and the topics discussed revolved around Gibraltar's strengths, limitations and propitious future. Here follows some of the issues discussed.
Financial services and products can be "passported" by Gibraltar businesses throughout Europe by virtue of the United Kingdom's membership of the European Union. This is a competitive edge that Gibraltar has over other jurisdictions such as the Channel Islands and Monaco.
Office space, residential homes and hotel rooms are limited but there are projects in the pipeline to address this space shortage such as the construction of the World Trade Centre and the 200-room Hilton Hotel.
The insurance sector has grown from 13 insurers, reinsurers and insurance managers in 2000 to 63 today and according to sector representatives, about 8% of all car insurance in the UK is written in Gib.
There are big business names which are using Gibraltar for captive insurance such as Tate & Lyle, the global foods giant, Intercontinental Hotels Group and Dixons, the UK electronics retailer.
Gibraltar's attraction is due to a number of factors such as a low corporate tax rate, no currency controls, no VAT or capital gains tax and a enjoys a low operating cost base compared with other jurisdictions such as Dublin or Bermuda.
The Financial Services Commission fairs well by those who contributed to the report as they describe the Commission as sympathetic and flexible to the industry's needs.
The launch in Gibraltar of the Burren Global Arbitrage Fund of $500 million in June last year put Gibraltar on the map in regard to funds.
Highly skilled professionals are required to run complex operations which are based in Gibraltar. These professionals receive a favourable tax treatment through the High Executive Possessing Specialist Skills (HEPSS) scheme. This coupled with the lifestyle offered in this part of the Southern Mediterranean makes Gibraltar almost irresistible for those who want to enjoy business and pleasure.
2011 augurs well for Gibraltar.
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