Setting up a company in Gibraltar offers several distinct advantages that make it an attractive jurisdiction for businesses:

1. Favorable Tax Regime

• Low Corporate Tax Rate: Gibraltar imposes a corporate tax rate of 10% on taxable income, which is significantly lower than many other jurisdictions.
• Tax Exemptions: Certain types of income, such as income derived from outside Gibraltar, may be exempt from taxation.
• No Capital Gains Tax: Gibraltar does not levy capital gains tax, making it advantageous for investments and asset sales.

2. Stable Legal and Regulatory Environment

• Common Law System: Gibraltar operates under a legal system based on English common law, providing familiarity and stability for businesses.
• Regulatory Framework: Transparent and well-regulated financial services sector, overseen by the Gibraltar Financial Services Commission (GFSC).

3. Access to EU Market (Pre-Brexit)

• Passporting Rights: Gibraltar companies had access to the EU market under the EU Single Market rules, benefiting from passporting rights for financial services.
• Potential Post-Brexit Considerations: While the status of access to the EU market may have changed post-Brexit, Gibraltar's proximity to the EU and its regulatory alignment are still advantageous.

4. Currency Stability

• British Pound (GBP): Gibraltar uses the British Pound (GBP) as its official currency, offering stability and predictability for financial transactions and international business operations.

5. Strategic Location

• Gateway to Europe and Africa: Positioned at the southern tip of the Iberian Peninsula, Gibraltar serves as a gateway between Europe and Africa, facilitating trade and business connections.

6. Business-Friendly Environment

• Efficient Incorporation Process: Setting up a company in Gibraltar is relatively straightforward, with minimal bureaucratic hurdles.
• English Language: English is the official language of Gibraltar, simplifying communication and legal documentation for international businesses.

7. Financial Services Hub

• Financial Services Sector: Gibraltar is recognized as a reputable international financial center, particularly in sectors such as insurance, banking, and online gaming.
• Economic Diversification: The economy is diversified beyond financial services, including sectors like tourism, shipping, and digital technology.

8. Lifestyle and Quality of Life

• High Standard of Living: Gibraltar offers a high standard of living with a pleasant Mediterranean climate and cultural diversity.
• Strategic Location: Attractive for individuals seeking a business-friendly environment with access to both Europe and North Africa.

Summary

Setting up a company in Gibraltar provides numerous advantages, including a favorable tax regime, stable legal framework, access to the EU market (pre-Brexit), currency stability, strategic location, and a business-friendly environment. These factors collectively make Gibraltar an appealing jurisdiction for international businesses looking to establish a presence in a well-regulated and tax-efficient environment.