Regulatory Framework

Gibraltar’s Regulatory Framework

Gibraltar Financial Services Commission (GFSC)

The GFSC is the primary regulator of Gibraltar’s finance sector. It oversees banking, insurance, investment services, funds, and DLT providers, ensuring that all entities operate in compliance with international standards and local legislation.

The GFSC is known for its principle-based regulatory approach, offering flexibility while maintaining strict compliance with global regulatory standards. The emphasis is on protecting consumers, managing systemic risks, and ensuring market transparency.

Anti-Money Laundering (AML) Regulations: Gibraltar follows stringent AML and CTF regulations, which align with the Financial Action Task Force (FATF) recommendations. Firms operating in Gibraltar are required to conduct thorough due diligence, monitoring, and reporting of suspicious transactions.

Taxation

• Corporate Tax Rate: Gibraltar has a low corporate tax rate of 15%, applicable to profits accrued or derived in Gibraltar. This is a key factor in attracting international companies and financial services providers.
• No Capital Gains Tax or Inheritance Tax: Gibraltar does not impose capital gains tax, wealth tax, or inheritance tax, making it an attractive jurisdiction for wealth management and estate planning.
• No VAT: Gibraltar does not impose Value Added Tax (VAT), providing a competitive advantage for companies engaged in cross-border trade and financial services.
• Tax Transparency and Compliance: Gibraltar is compliant with the OECD’s Common Reporting Standard (CRS) and Base Erosion and Profit Shifting (BEPS) initiatives, ensuring tax transparency and adherence to international standards.

Advantages of Gibraltar as a Finance Hub

Favorable Tax Environment

The absence of VAT, capital gains tax, and inheritance tax, along with the low corporate tax rate, creates a highly favorable environment for financial services firms, investors, and businesses.

Stable and Trusted Legal System

Gibraltar’s legal system is based on English common law, providing a high level of legal protection and predictability for businesses and investors. This is especially important for international clients who value the clarity and stability of common law jurisdictions.

Brexit Resilience

• Although Gibraltar is no longer part of the EU following Brexit, it maintains strong economic ties with the UK, allowing continued access to UK markets.
• Gibraltar’s finance sector is diversifying to minimize any potential negative impact from Brexit, with a focus on fintech and other global markets.

Access to Skilled Professionals

Gibraltar has a large pool of highly skilled professionals in fields like law, accountancy, banking, and insurance. These professionals often have experience working with international clients and are adept at navigating complex cross-border financial matters.

DLT and FinTech Pioneering

Gibraltar’s early adoption of DLT regulation has made it a hub for fintech companies and blockchain startups. Its forward-thinking approach in this sector attracts innovation and investment from global players in the digital finance world.

Gibraltar Finance Centre Services

• Business Development: Promoting Gibraltar’s financial services globally and attracting foreign direct investment.
• Regulatory Support: Working closely with the GFSC to maintain and enhance Gibraltar’s regulatory framework, ensuring it remains competitive and compliant with international standards.
• Public-Private Partnerships: Collaborating with local businesses, legal firms, and industry bodies to enhance Gibraltar’s position as a leading financial services hub.