Our tax experts use in depth technical knowledge and the KPMG Global Network to assist clients
Our tax practitioners use in depth technical knowledge and the KPMG...
Our tax experts use in depth technical knowledge and the KPMG Global Network to assist clients, both businesses and individuals, across a wide spectrum of tax areas and jurisdictions, in particular Gibraltar.
Gibraltar is a peninsula with a land mass of approximately 2.25 square miles linked to the southern tip of Spain and stands at the entrance to the Mediterranean. Due to its location it has a warm, Mediterranean climate with mild winters and low rainfall.
Gibraltar is an overseas territory of the United Kingdom and as such part of the European Union. However, the taxation system in Gibraltar is entirely separate from that of the UK and has a low tax regime for both companies and individuals.
The corporate tax rate is, generally, 10% for companies but only on income “accruing in and derived from” Gibraltar. Individuals can also benefit from a favourable tax regime with low tax rates and specific tax regimes. There is no tax on capital gains or VAT in Gibraltar.
Further information on the tax advantages available to Gibraltar resident individuals and companies are summarised below.
For ordinarily residents of Gibraltar there are two systems of taxation and individuals will not pay above an effective tax rate of 25% on taxable income. Most investment income, e.g. bank interest is not taxable in Gibraltar and as mentioned, there is also no tax on capital gains. There is no inheritance tax, wealth tax or estate tax.
There are also two special tax regimes for individuals; the Category 2 regime for High Net Worth Individuals; and the High Executive Possessing Specialist Skills (HEPSS) regime that provide tax incentives for individuals with specialist skills to relocate to Gibraltar.
For information on the tax benefits in Gibraltar for companies read more here: