Originally published in September 2013. Updated October 2025 for accuracy and relevance.
Gibraltar’s Corporate Tax System
1. Low Corporate Tax Rate
Gibraltar’s standard corporate tax rate is 12.5%, one of the lowest in Europe. This makes the jurisdiction particularly attractive for holding companies, e-commerce operations, and global service providers.
2. Territorial Tax Regime
Gibraltar operates a territorial tax system, meaning companies are taxed only on profits that accrue in or derive from Gibraltar. Profits generated outside the territory are generally exempt from local tax, offering clear advantages to non-resident entities.
3. No VAT (Value-Added Tax)
Unlike many EU jurisdictions, Gibraltar does not impose VAT. This reduces administrative burdens and simplifies cross-border operations.
4. No Capital Gains Tax
There is no capital gains tax in Gibraltar. Businesses involved in the sale of assets or shares can realise profits without additional tax obligations locally.
Why Gibraltar Works for Non-Residents
For non-residents, Gibraltar’s territorial tax framework provides significant opportunities to reduce overall tax exposure — if structured correctly.
How It Works
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Offshore Activities: Income derived from services or trading conducted outside Gibraltar is typically not subject to Gibraltar tax.
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Business Structuring: To benefit, companies must ensure their core income-generating activities occur outside Gibraltar — including negotiations, contracts, and operational management.
This structure is particularly effective for consultancy, trading, e-commerce, fintech, and asset-management businesses serving global clients.
Important Compliance Considerations
1. Substance Requirements
Gibraltar’s tax authorities now place strong emphasis on economic substance. A company must demonstrate genuine business presence — such as:
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A physical office or business address in Gibraltar
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Local directors or employees
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Real management and control within the jurisdiction
The level of substance required depends on your business model and industry.
2. Professional Tax Advice
Because Gibraltar’s tax laws are detailed and continually evolving, expert tax advice is essential. A qualified tax consultant or corporate services provider can help you:
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Identify income sources taxable in Gibraltar
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Structure offshore activities correctly
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Maintain compliance with the Income Tax Act 2010 and relevant regulations
3. OECD and EU Compliance
Gibraltar fully complies with OECD BEPS (Base Erosion and Profit Shifting) standards and EU transparency requirements. The jurisdiction’s commitment to international cooperation reinforces its credibility as a legitimate low-tax centre, not a secrecy haven.
Advantages of Gibraltar Company Taxation
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12.5% corporate income tax on local profits
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No VAT, no capital gains tax, no inheritance tax
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Efficient incorporation process and English-based legal system
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Stable political environment under UK sovereignty
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Strategic location between Europe and Africa
These features make Gibraltar ideal for international holding structures, fintech ventures, and asset-management firms seeking flexibility and credibility.
Final Thoughts
For non-residents, Gibraltar offers a unique balance of low taxation, transparency, and regulatory strength. Its territorial system ensures that only locally generated income is taxed, while international profits can remain exempt — provided the business is structured correctly and meets substance standards.
🌐 Gibraltar continues to stand out as a compliant, efficient, and future-ready jurisdiction for global companies.
Taxation in Gibraltar
With the right support, registering a company in Gibraltar can open doors to global business expansion—securely and efficiently.
Need help registering a Gibraltar Company?
Our experienced team at BRIS Group is ready to guide you through the entire process — from name reservation and documentation to successful incorporation.
Contact us at [email protected] for personalized assistance.
Learn more about Starting Offshore Company in Gibraltar and other European Courtiers for Company registration :