Key Finance Sectors

Key Sectors in Gibraltar’s Financial Services Industry

Banking:

International Banking Presence: Gibraltar has several international banks and financial institutions offering services to businesses and individuals. These banks provide a wide range of services, including corporate banking, private banking, wealth management, and treasury services.

Currency: Gibraltar uses the Gibraltar Pound (GIP), which is pegged to the British Pound (GBP), ensuring currency stability and confidence in the banking system.

Regulation: The Gibraltar Financial Services Commission (GFSC) regulates all banking activity, ensuring it adheres to international standards on anti-money laundering (AML), counter-terrorism financing (CTF), and prudential supervision.

Insurance:

• Growing Insurance Market: Gibraltar has become one of Europe’s leading insurance centers, particularly in the areas of motor insurance and captive insurance. Many UK-based companies have chosen to establish insurance operations in Gibraltar.
• Protected Cell Companies (PCCs): This structure allows companies to set up individual “cells” to separate assets and liabilities.

Funds and Asset Management:

• Fund Management: Gibraltar offers a well-regulated environment for investment funds, attractive to hedge funds and private equity.
• Experienced Professionals: Gibraltar is home to skilled fund managers, legal advisors, and accountants familiar with international regulations.

Pensions:

• QROPS and QNUPS: Gibraltar is an attractive jurisdiction for these pension schemes, offering tax benefits for UK pension transfers.
• Pension Funds: The pension fund industry is growing under Gibraltar’s regulatory framework.

Distributed Ledger Technology (DLT) and Blockchain:

• Innovative Regulation: Gibraltar introduced a DLT regulatory framework in 2018, providing stability for blockchain businesses.
• Cryptocurrency Exchanges: Several exchanges benefit from Gibraltar’s clear legal structure for DLT.
• DLT Licensing: Firms must obtain a license from the GFSC, meeting strict standards in risk and consumer protection.

Private Client and Wealth Management:

• Wealth Management: Gibraltar’s tax regime and stability attract high-net-worth individuals (HNWIs) for estate planning and wealth preservation.
• Trusts and Fiduciary Services: Gibraltar’s trust laws, based on British legal systems, offer a strong framework for asset management.

Tax Benefits for Retirees in Gibraltar:

• No Capital Gains Tax
• No Inheritance or Estate Tax
• No Value Added Tax (VAT)
• Category 2 Individual Status – Capped taxable income between £37,000 and £44,740 annually
• Favorable Pension Taxation – 2.5% tax under qualifying schemes
• Remittance-Based Taxation – Only income earned or remitted to Gibraltar is taxed

The Finance Centre provides a wide range of wealth management services, including:

• International Trusts and Estate Planning
• Pension Schemes (QROPS & QNUPS)
• Private Banking & Investment Management
• Residency Options for HNWIs

These benefits, combined with Gibraltar’s financial stability, make it a prime destination for retirees and high-net-worth individuals looking to preserve and grow their wealth.