To help protect your business assets and lower your company’s tax burden, you may have considered moving your business from the United Kingdom to another country. Many businesses have moved offshore to take advantage of tax breaks, and one of the countries they have found attractive is Gibraltar. There are many benefits to moving your business and/or your personal financial matters to this UK territory.

Benefits for Businesses in Gibraltar

Moving your business to Gibraltar offers many benefits for you, especially tax benefits. These benefits include:

Familiarity

Since it has been a territory of the UK since the 1700s, Gibraltar is an English-speaking country that is familiar with British customs, and its legal system is modelled after the UK system. English businesses and/or residents who move there will not have to adapt to a new language, and they will find that much of the culture is familiar as well.

Stability

The government and economy in Gibraltar isstable and they are an autonomous, self-sufficient territory. Gibraltar has also been a member of the European Economic Community since 1973 and became a member of the European Union in 1993. They are a modern democracy whose security is guaranteed by their Constitution.

Good Reputation

As an EU finance centre, Gibraltar has an excellent reputation with the Financial Services Commission or FSC. The FSC in Gibraltar considers the country to be an onshore European financial district rather than an offshore tax haven, which used to be its reputation. However, it was able to reposition itself and now has a better business reputation, which is attractive to many British businesses.

Tax Breaks

Many companies in the UK are moving their businesses to Gibraltar to take advantage of better tax rates. The standard corporate tax rate in Gibraltar is ten percent, but that is only on income generated in Gibraltar. If the income is generated overseas, the company will not be taxed in Gibraltar for that income.

Passporting Services

Another advantage for businesses in Gibraltar is that they can passport services like banking, insurance and investments to other countries in the EU or EEA and there are no regulatory requirements within the economic area. The only restriction is that the companies have to be authorised by the FSC.

Competitive Advantage

A business trading from Gibraltar is exempt from the EU’s harmonisation taxes, including VAT (value-added tax), which allows them to give their customers a savings of up to twenty percent over competitors that trade from other countries. The ability to save customers thousands, if not millions, of pounds can help your business attract the customers it needs to thrive.

In addition to low corporate taxes, for those who choose to follow the business to Gibraltar, the country has no inheritance tax, no capital gains taxes, and low personal income tax. Currently, their income tax is less than twenty-five percent, and the government is striving to lower it. Moving to Gibraltar from the UK can be an easy transition for your business, as well as for yourself.