GIBRALTAR

Geography & Background
Gibraltar is at the southern tip of Spain covering an area of 2.75 square miles. It is one of the two mythological pillars of Hercules, the other being in Ceuta on the African continent across the Straits. To the Romans, Gibraltar marked not only the end of their “Mare Nostrum”, but also the end of the world, “plus ultra”, nothing beyond. In Greek mythology, Gibraltar was the entrance to Hades.

Gibraltar has been a British colony since 1704 when it was captured by a combined force of British and Dutch soldiers. It was formally ceded to Britain by the Treaty of Utrecht in 1713.

The population of Gibraltar is in the region of 30,000 of which the vast majority are native Gibraltarians of mixed ancestry from Malta, Italy, Britain, Spain and Moroccan Jews, to mention a few. The official language is English and most Gibraltarians speak Spanish as well.

Government
Gibraltar is a British Territory with its own Constitution and internal self government. The UK Government is responsible for defence, foreign affairs and internal security. The Government of Gibraltar is based on the UK Parliamentary and democratic system and institutions. It has its own House of Assembly which consists of fifteen elected members

Gibraltar is a member of the European Union, having joined as a member with the United Kingdom in 1973. Being a small territory, Gibraltar is excluded from the Common Customs Tariff, the Common Agricultural Policy and the requirement to impose Value Added Tax (VAT) on goods. However, it implements EU directives in commercial activities, especially those affecting Company Law, Banking, Insurance and Investor Protection.

Legal System
The Legal System in Gibraltar is based on English Common Law and Statute and on the law created in Gibraltar and contained in Ordinances. These invariably follow English law and practice and procedure with variations to suit local conditions where necessary.

The Court system is similar to that in the United Kingdom. Gibraltar has its own Supreme Court with a civil and criminal jurisdiction and the equivalent of the English County Court, known locally as the Court of First Instance and the Magistrates’ Court.

Gibraltar is a party to the Brussels and Lugano Conventions which, amongst other things, allows for the reciprocal enforcement of judgments between Contracting States which consist of all EU and EFTA countries.

Gibraltar lawyers train in the United Kingdom and are members of the Bar of England and Wales or Solicitors as well as members of the Gibraltar Bar.

Currency & the Economy
The unit of currency in Gibraltar is the Pound Sterling. There are local notes and coins which are on a par with Sterling. There is no exchange control in Gibraltar and complete freedom of movement of funds into and out of Gibraltar.

The economy in Gibraltar is largely dependent upon tourism and revenue raised from direct taxation and levies. The development of Gibraltar as one of the world’s major offshore financial centres is beginning to produce a steady income for Gibraltar through the provision of financial services to non-residents of Gibraltar.

Many of the world’s major banks are represented in Gibraltar providing both domestic and offshore facilities. Banking confidentiality is guaranteed by law. Accounts may be maintained in all major currencies and interest earned in offshore accounts is not taxable.

There is no VAT, Capital Gains Tax, Wealth Tax, Gift Tax, Inheritance Tax or Withholding Tax in Gibraltar.

Financial Regulation
In recent years the Financial Services Commission has been created and this ensures close scrutiny of all matters in Gibraltar relating to Banking, Insurance, Fund Management and all other matters relating to investor protection.

Political Stability
As a British Territory with an English legal and banking system and as a member of the European Union, Gibraltar provides a well-regulated and stable environment for the provision of such services. Increasingly Gibraltar is becoming a more popular finance centre and our Government is committed to promoting and working with the financial services industry to provide products and service of the highest quality.

Communications
Gibraltar has an international airport and harbour which is popular with cruise liners being, as it is, on the route from Europe to the Southern hemisphere. There is land communication with the rest of Europe through its frontier with Spain. Its system of communications is second to none in the world and enjoys the latest satellite and electronic equipment in use.

Exchange Control & Double Taxation Treaties
Gibraltar has no exchange control and no double taxation treaties.