LOW TAX COUNTRIES
Andorra
Anguilla
Antigua & Barbuda
Aruba
Australia
Bahamas
Barbados
Belize
Bermuda
British Virgin Islands
Cayman Islands
Cook Islands
Costa Rica
Cyprus
Dominica
Dominican Republic
Gibraltar
Hong Kong
Isle of Man
Jersey & Guernsey
Liechtenstein
Luxembourg
Malta
Mauritius
Panama
Singapore
St.kitts & Nevis
Switzerland
Turks & Caicos
Vanuatu
Index of Articles
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GIBRALTAR
About Gibraltar
Gibraltar is a UK overseas territory located near the southernmost tip of the Iberian Peninsula, overlooking the Strait of Gibraltar. The territory shares a land border with Spain to the north. Gibraltar has historically been an important base for the British Armed Forces and is the site of a British naval base
Strategically important, Gibraltar was reluctantly ceded to Great Britain by Spain in the 1713 Treaty of Utrecht; the British garrison was formally declared a colony in 1830. In a referendum held in 1967, Gibraltarians voted overwhelmingly to remain a British dependency. Although the current 1969 Constitution for Gibraltar states that the British government will never allow the people of Gibraltar to pass under the sovereignty of another state against their freely and democratically expressed wishes, a series of talks were held by the UK and Spain between 1997 and 2002 on establishing temporary joint sovereignty over Gibraltar.
In response to these talks, the Gibraltarian Government set up a referendum in late 2002 in which a majority of the citizens voted overwhelmingly against any sharing of sovereignty with Spain. Since the referendum, tripartite talks have been held with Spain, the UK, and Gibraltar, and in September 2006 a three-way agreement was signed. Spain agreed to allow airlines other than British to serve Gibraltar, to speed up customs procedures, and to add more telephone lines into Gibraltar. Britain agreed to pay pensions to Spaniards who had been employed in Gibraltar before the border closed in 1969. Spain will be allowed to open a cultural institute from which the Spanish flag will fly
| Gibraltar |
|
| Capital |
Gibraltar
36°8′N 5°21′W |
| Official languages |
English |
| Area |
6.5 km² (229th)
2.5 sq mi |
| Population
|
27,921 (214th) |
| GDP (PPP)
|
$769 million (200th) |
| per capita
|
$27,900 |
| Currency |
Pound Sterling (GBP) |
| Time zone |
(UTC+1) |
| Dialling code |
+350 |
THE ECONOMY OF GIBRALTA
The British military traditionally dominated the economy of Gibraltar, with the naval dockyard providing the bulk of economic activity. This has however diminished in the last twenty years, and it is estimated to account for only 7% of the local economy, compared to over 60% in 1984.
Today, Gibraltar has an extensive service-based economy, dominated by financial services and tourism. Referred as an International Finance Centre, Gibraltar was among 35 jurisdictions identified by the OECD as a Tax haven in June 2000. As a result of having made a commitment in accordance with the OECD's 2001 Progress Report on the OECD's Project on Harmful Tax Practices, Gibraltar will not be included in the next OECD's list of unco-operative tax havens [4]. It has also never been listed on the FATF Blacklist of unco-operative countries in the fight against money laundering. It may also be referred to as an Offshore Financial Centre, by international institutions such as the IMF [5].
Fiscal advantages, including no tax on capital income, are offered to the over 8.000 offshore qualified companies registered in Gibraltar. After an agreement with the European Union in 2005, this tax-exempt regime is due to disappear on the 31st of December 2010 [6].
Financial services and persons involved in the industry are regulated by the Financial Services Commission, which operates in a similar manner to the United Kingdom Financial Services Authority.
A number of British and international banks have operations based Gibraltar. Recently, a number of large bookmakers and online gaming operators have relocated to Gibraltar, to benefit from operating in a well regulated jurisdiction with a favourable tax regime.
Tourism is also a significant industry. Gibraltar is a popular stop for
cruise ships and attracts day visitors from resorts in Spain. The Rock is a
popular tourist attraction, particularly among British tourists and residents in
the southern coast of Spain. It is also a popular shopping destination, and all
goods and services are VAT free.
Other areas of activity are services related to shipping, like bunkering, and ship repair and construction. The economy is considered to be strong and diversified.[7]
Figures from the CIA World Factbook show that Gibraltar has a GDP of over £432 million ($769 million) with a per capita figure of £15,700 ($28,000). The main export markets in 2004 were France (19.4%), Spain (14.1%), Turkmenistan (12.1%), Switzerland (11.7%), Germany (10.1%), the United Kingdom (9.1%), and Greece (6.8%).
A regular Gibraltar company can acquire tax-exempt status, provided that it is not owned by Gibraltarians and does not derive income from within Gibraltar. The tax-exempt status is granted by the Gibraltar Finance Centre upon individual application by the company. The tax-exempt company pays a GBP 225 fixed annual duty to Gibraltar government. The exemption certificates are issued for the duration of 25 years.
The special tax treatment of the Gibraltar exempt company is prescribed by the Gibraltar Companies (Taxation and Concessions) Ordinance of 1967. A particular benefit for a Gibraltar exempt company is that it can have locally appointed directors and administration, while remaining de-facto tax free in Gibraltar. This is a very important feature, because the location of the management in Gibraltar helps to prevent the assumption that the company may be tax resident anywhere else.
~ Books About Gibraltar~
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