By the implementation of EU directives on e-commerce and electronic signatures, as well as the liberalising of the telecommunications industry, the Gibraltar Government have demonstrated their commitment to making Gibraltar an e-friendly jurisdiction.
There are a number of tax benefits from establishing an e-business in Gibraltar:
- VAT. Gibraltar is part of the European Union (EU), but not the EU Customs Union. Gibraltar therefore does not charge VAT.
- Tax Exempt and Qualifying Companies. Gibraltar companies trading outside Gibraltar can apply for tax exempt status (paying an annual fee of either £200 or £225 per year) or qualifying status (paying tax at a rate of between 0% and 35%). Certificates are valid for 25 years.
- There is No Capital Gains Tax, No Wealth Tax, No Inheritance Tax
- For companies setting up an office in Gibraltar to manage the business, there are tax breaks for employees possessing specialist skills who can pay reduced amounts of personal tax as "Qualifying Individuals- Category 3 or 4".
- Consultants not resident in Gibraltar can be paid without deduction of tax in Gibraltar.
The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.