Favorable Tax Environment

Favorable Tax Environment

One of the primary reasons businesses flock to Gibraltar is its favorable tax structure. The jurisdiction offers some of the lowest corporate tax rates in Europe. Additionally, there is no capital gains tax, wealth tax, sales tax, or value-added tax (VAT), making Gibraltar an appealing destination for international businesses looking to minimize their tax burden.

This favorable tax regime is complemented by various tax reliefs and double taxation agreements, further enhancing Gibraltar's attractiveness as a business hub.

The Gibraltar government has been aligning its tax laws with international standards and EU regulations, meaning businesses must show "substance" (i.e., real economic activity) to benefit from certain tax advantages.

Low Corporate Tax: Gibraltar has a corporate tax rate of 15% on profits accrued in or derived from Gibraltar, which is considerably lower than many other European jurisdictions.

No VAT: There is no value-added tax (VAT) in Gibraltar, which can be a significant advantage for companies engaged in international trade and services.

No Capital Gains or Inheritance Tax: There is no capital gains tax, wealth tax, or inheritance tax, which makes it attractive for entrepreneurs and investors.

No Sales or Goods and Services Tax (GST): This absence of indirect taxes further enhances the cost-effectiveness of doing business in Gibraltar.

Non-Resident Companies: Non-resident companies are only taxed on profits derived from within Gibraltar, and profits earned outside of Gibraltar are not subject to tax.

Income Tax: Personal income tax is charged on a sliding scale (between 10% and 29%), and individuals can choose between an allowance-based system or an income-based system for their taxation.