GIBRALTAR

Gibraltar lies on the most southern edge of the Pyrenees Peninsula. Since the 18th century, it has been a dependent territory falling under the governance of Great Britain, however, with a significant degree of autonomy. The legal system is based on English-American law and the court system is very similar to that of Britain. Great Britain is responsible for international affairs and defence, but otherwise all internal affairs are in the competence of the locally elected chamber. The official language is English and the official currency is the Gibraltar pound which is 1:1 to the British pound.

It is possible to found two types of companies in Gibraltar, that are exempted from the duty to pay taxes - non-resident and entitled company. The non-resident, exempted from tax duty company, has to be owned by non-residents, it may not condemn any trading activities on Gibraltar with the exception of trading with other exempted companies. If this company has no bank accounts maintained on Gibraltar, it can be totally exempted from payment of taxes, i.e. also from the lump sum fee payment.

Furthermore, it is possible to establish a so called entitled company on Gibraltar. This means that the company itself sets its own tax rate from 2% and more, which can be useful when proving tax payment in a domestic country and receiving exemption from income tax. For companies that are not founded in the EU, but invest and collect dividends in the countries of EU, the holding company is a beneficiary that pays 35% corporate tax, except income from dividends that are subject to 1% withholding tax.

Suitable conditions for international transactions: