|
BANKING - TAX FREE INTEREST & INVESTMENTS
Main Advantages of Banking in the name of an Offshore Company
- All interest earned as well as any capital gains or other profits made whatsoever are paid entirely free of tax.
- The identity of account holders is absolutely confidential and banks can only disclose this if they are ordered to do so by the Courts in cases of serious criminal activity.
- It avoids the disclosure requirements or the withholding tax imposed by the EU Savings Directive. If an EU national has a personal account which earns interest in any EU jurisdiction or Switzerland, then either a withholding tax is applied (in Austria, Luxembourg and Switzerland) or the details of such interest earned is reported to the tax authorities of that persons country of residence. If you have a bank account in the name of an Offshore Company this law does not apply.
First Class Banking & Investment Facilities
There are excellent banking facilities in Gibraltar with many of the major international banks and Financial Institutions represented either with a domestic or an offshore presence. High interest accounts and portfolio management services are available.
There are relatively simple procedures in place which facilitate the swift opening of bank and investment accounts.
The services offered have developed into 4 main sectors: the provision of local current accounts, deposit accounts and lending facilities; offshore banking dealing with non-residents; private banking; and portfolio management.
We also have contacts with major international banks in other jurisdictions othe than Gibraltar.
Setting up a Bank in Gibraltar
In 1992 banking legislation was brought into line with current EU banking directives and EU authorised banks present in Gibraltar may now set up anywhere within the EU. This is commonly known as the passporting procedure.
Gibraltar registred banks can now operate in the United Kingdom with a licence granted in Gibrltar. The granting of passporting throughout the entire EU of Gibraltar licensed banks is imminent and once granted Gibraltar licensed banks will be able to open branches in any EU country.
The grant and supervision of banking licences is the responsibility of the Commissioner of Banking. Applications for banking licences are carefully and minutely scrutinised.
The main minimum statutory criteria of which the Commissioner must be satisfied are aimed ultimately at protecting the depositor and the public. These are listed below:
- Directors, managers and controllers must be fit and proper persons.
- At least two individuals must effectively direct the business of the Bank.
- The business of the bank must be conducted in a prudent manner.
- The licensee must at all times maintain in the business paid up capital and reserves which are sufficient to safeguard the interest of its depositors and potential depositors.
- Adequate liquidity must be maintained in relation to assets and the liabilities of the business and also having regard to the times at which liabilities fall due and assets mature.
- There must be adequate provision for bad and doubtful debts and also for obligations of a contingent nature.
- There must be at all times adequate accounting and other records and adequate systems and controls for the conduct and monitoring of business.
- There must be integrity and professional skills appropriate to the nature and scale of the activities of the institution.
- The head office must be located in Gibraltar.
- The minimum capital required for a banking licence is ECU 5 million.
A bank in Gibraltar can operate either as a domestic bank or as an offshore bank. In the latter case, it can only have as clients non-residents of Gibraltar. Banks with exclusively offshore operations are not liable to Gibraltar tax.
|
| [TOP] |
