Gibraltar

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a unique AIFM jurisdiction within the EU by Philip Canessa, Gibraltar Finance Centre

Gibraltar in brief

Peninsula linked to southern Spain

UK Overseas Territory

Self-Governing

Self-financing

Population: 30,000

English common law system

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Gibraltar in brief

DIVERSIFIED ECONOMY

Financial services

e-gaming

Shipping and port services

Tourism

Pound Sterling (GBP) currency

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Gibraltar in brief

WORKFORCE

Highly educated and trained

Reasonable costs

No job quotas

No restrictions for EU nationals

Also applies to Swiss citizens

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Gibraltar & the EU

EU Treaties applicable to Gibraltar

Exemptions from:

VAT

Customs Union

Common Agriculture Policy

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Why Gibraltar?

International financial centre within the EU and the single market

Passporting of financial services

Responsive whilst regulated to EU and UK standards

Favourable fiscal regime

High-quality infrastructure

High-quality lifestyle

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Regulation in Gibraltar

Financial services regulation matching EU and UK standards

The Financial Services Commission (FSC) is a wholly independent regulatory authority

Periodic audits of legislation and supervisory standards in FSC by UK experts

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Exploding the myths

NO POLITICAL RISK

British for over 300 years

Constitutional guarantees on Gibraltar’s sovereignty

Recently restated by David Cameron, British Prime Minister

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Exploding the myths

REPUTATIONAL RISK

Implementation of UK standards and EU Directives

FSC is a model regulator

Gibraltar is FATF and IMF reviewed

US FATCA / UK FATCA / E5 Pilot programme

TIEAs and Multilateral convention

Tax evasion - criminal offence

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Experienced Investor Fund regime

pre-launch approval mechanism

no investment or borrowing restrictions

fund may be self-managed

expedited start-up process and competitive start-up costs

no limit to number of investors

reasonable ongoing operating costs

tax neutrality

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Experienced Investor

a person or partnership whose business is

investing or providing investment advice

a body corporate with net assets > €1M,

or part of a group with net asets > €1M

the trustee of a trust with trust assets >

€1M

an individual whose net worth is > €1M

a participant who invests a minimum of

€50,000 in an EIF and has been

professionally advised

a professional investor, as defined under

the Financial Services (Markets in Financial

Instruments) Act 2006

a participant in a fund that has re-

domiciled to Gibraltar with the regulator’s

permission

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AIFMD–why Gibraltar?

fully compliant in respect of EU business and fund legislation

investment firms will be able to comply with AIFMD and avail themselves of the European passport and market across member states

quick and efficient regulatory process

tax of 10% on profits of investment managers

professionals can apply for a specialist tax category limiting annual personal tax to GBP 30,000

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Gibraltar’s Budget June 2013

GDP growth touching 7.8% per annum

Ranked in the top 20 in global terms of GDP growth and placed in the top 10 ranking of GDP per capita

Gross public debt has been reduced to 27.5% and has been forecast to reduce further during the current financial year

Net public debt stands at c.24% of GDP

Budget surplus for financial year 2012/2013 is forecast to be a record

Investment in capital projects include a new airport terminal and a UEFA standard stadium

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Powerful Tax Package

10% corporate tax

25% maximum effective tax rate for individuals

No tax on investment income

No capital gains tax

No wealth tax

No inheritance tax

No estate duty

No VAT

No exchange control

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Single Market Freedom

Investment Services

Banking and Insurance

Freedom of establishment

Freedom of services

No separate licensing procedures

Real benefits to institutions with targets in EEA territories

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Increased Business Activity

Asset management

Funds administration

Swiss portfolio managers

Insurance

Private banking

Derivatives, securities and commodities

trading

Securitisation and repackaging

e-Gaming

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High Net Worth Individualss

Appropriate accommodation in Gibraltar for their exclusive use

Not resident in Gibraltar for the previous five years

Tax GBP24,000 min., c.GBP30,000 max.

Revised regulations provide more flexibility on residence, permitted activities and for spouses of HNWI’s

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Legal System

Only common law jurisdiction in continental Europe (courts, statutes and principles of equity based on English law)

Very well developed expertise (funds, trusts, company management and private banking)

Separate and distinct jurisdiction

Own legislature

Business understanding of civil law systems

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Professional Services

16 Banks

27 Investment firms

“Big Four” audit accounting firms

International and UK qualified lawyers

55 Insurance companies

68 Company managers / professional trustees

4 e-Money firms

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Property in Gibraltar

Modern office accommodation

High quality residential accommodation

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Gibraltar Lifestyle

Average 300 days of sunshine per annum

c. 3 million expatriates live in and around the Iberian peninsula

Golf, polo, sailing, skiing, the perfect location for all sports

60 top class golf courses in the region, most very near to Gibraltar

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Further Information

Finance Centre, Gibraltar

Responsible for the development of new business

A centralised source of information and direction

Tel: +(350) 200 50011

philip.canessa@financecentre.gov.gi

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