Fund Jurisdiction – Why Gibraltar?

Why establish a fund in Gibraltar?

Gibraltar conforms to Legislation of the Financial Services Commission (FSC) which protects you from any financial loss, demonstrating Gibraltar’s willingness to prevent money laundering and monitor all its financial service providers. The extent of the FSC’s diligence is made clear in the IMF’s assessment of the supervision of banking, insurance and anti-money laundering measures that was recently completed after an IMF visit.

Gibraltar law is based on that of the United Kingdom. with some necessary local variations. Its highest court is the Privy Council of the United Kingdom, and therefore the laws of the country are built on a solid foundation.

Gibraltar’s tax regime allows for various tax advantages both for the private investor and investment vehicle. Collective investment schemes are exempt from tax on their income and dividends paid are free from Gibraltar withholding tax as long as the payment is made to a non-resident company or individual.

The total absence of inheritance tax, capital gains tax and wealth tax. is another advantage. Stamp duty is paid on the initial share capital or on subsequent increases at a fixed rate of GBP10.

As a member of the EU, Gibraltar qualifies for the benefits of the European Parent Subsidiary Directive (EPSD). A scheme designed to eliminate taxes when a company establishes a subsidiary in another member state, effectively exempts parent-subsidiary withholding taxes when the parent company has a minimal stake in its subsidiary for a predetermined period of time.

Setting up a fund in Gibraltar is easy, flexible and can be accomplished in a reasonably short period of time. The application procedure has now been simplified to allow for self-certification, resulting in automatic qualification within 14 days, once the FSC receives notification that the fund has been launched. You will need to support an established local solicitor to ensure the requirements are confirmed, along with two Gibraltar directors, authorized by the FSC to be custodians or brokers. Finally, you will need an FSC regulated Gibraltar Fund Manager to manage your fund.

It is possible to domicile an existing fund again currently in another jurisdiction and move it to Gibraltar.

Your geographic locationRight at the southern tip of Spain, it makes Gibraltar an ideal location for many investors residing in Spain or elsewhere in the EU.

Gibraltar is well served by a modern communications infrastructure and an international airport.

As a highly regulated and internationally recognized financial center of the EU, Gibraltar deserves more than a cursory glance when it comes to seeking a robust and competitive funding solution.