Corporate Taxation in Gibraltar: A Complete Guide

Published on October 2, 2025 and written by Cyril Jarnias

Gibraltar, this small British Overseas Territory located at the southern tip of the Iberian Peninsula, has become a leading offshore financial center. With its favorable tax regime and business-friendly regulations, Gibraltar attracts numerous investors and entrepreneurs from around the world. In this article, we will examine in detail corporate taxation in Gibraltar, registration procedures, tax obligations, and the comparative advantages of this jurisdiction compared to other tax havens.

An attractive tax regime for companies

Gibraltar’s tax system is designed to attract foreign companies and stimulate the local economy. Here are the main elements of corporate taxation in Gibraltar in 2025:

Corporate tax: The corporate tax rate in Gibraltar is set at 15%, one of the lowest in Europe. This rate applies to profits generated by activities conducted in Gibraltar or elsewhere. However, offshore companies can benefit from a 25-year tax exemption under certain conditions, meaning they pay no income or property taxes during this period.

No VAT: Unlike most European countries, Gibraltar does not apply value-added tax (VAT). This represents a significant advantage for businesses, particularly those operating in international trade.

Capital gains exemption: Capital gains realized by companies are not taxed in Gibraltar, making it an attractive jurisdiction for holding companies and investors.

No withholding tax: Gibraltar does not impose withholding tax on dividends, interest, or royalties paid to non-residents. This feature is particularly advantageous for international group structures.

Sector-specific tax incentives: Certain business sectors, such as financial services, online gaming, and information technology, may benefit from additional tax incentives to encourage their development in Gibraltar.

Establishing in Gibraltar: a simplified process

Registering a company in Gibraltar is a relatively simple and quick process, designed to facilitate the establishment of foreign companies. Here are the main steps to follow:

1. Choose a legal form: The most common forms are the limited liability company (Ltd) and the branch of a foreign company. The choice will depend on your business and tax objectives.

2. Reserve a company name: You must check the availability of the chosen name with the Gibraltar Companies House.

3. Prepare incorporation documents: This includes the company’s articles of association and memorandum of association.

4. Appoint directors and shareholders: At least one director and one shareholder are required. They do not need to be residents of Gibraltar.

5. Open a bank account: It is recommended to open a bank account in Gibraltar to facilitate the company’s financial operations.

6. Register with the tax authorities: Once the company is incorporated, you must register with the Gibraltar Income Tax Office to obtain a tax identification number.

7. Obtain necessary licenses: Depending on the business sector, specific licenses may be required, particularly for financial services or online gaming.

The registration process can be completed in a few days, or a few weeks for more complex cases. It is recommended to hire a local lawyer or accountant to ensure all formalities are properly completed.

Tax obligations: staying compliant

Although Gibraltar’s tax regime is advantageous, companies must meet certain obligations to maintain their status and benefit from tax advantages. Here are the main tax obligations in Gibraltar:

Annual corporate tax return: Companies must submit a corporate tax return each year, typically within nine months after the end of their fiscal year. This return must be accompanied by the company’s audited financial statements.

Provisional payments: Companies are required to make provisional corporate tax payments, usually in two equal installments, based on the estimated tax for the current year.

Maintenance of accounting records: Companies must keep detailed accounting records and retain them for at least six years. These records must be sufficiently detailed to allow for tax verification if necessary.

Declaration of beneficial owners: Gibraltar has established a beneficial ownership register to improve transparency. Companies must declare and regularly update information about their beneficial owners.

Transfer pricing reports: For companies that are part of multinational groups, strict transfer pricing rules apply. Detailed reports may be required to justify intra-group transactions.

Compliance with international standards: Gibraltar adheres to OECD standards on tax transparency and information exchange. Companies must therefore comply with these standards, particularly regarding the reporting of foreign financial accounts (CRS) and anti-money laundering measures.

Double taxation agreements: an expanding network

Although Gibraltar does not have an extensive network of tax treaties, its unique tax situation and agreements with the United Kingdom offer significant benefits to international businesses. Here are the main elements to know:

Agreement with the United Kingdom: Gibraltar benefits from a special agreement with the United Kingdom that avoids double taxation between the two territories. This agreement covers income tax, corporate tax, and capital gains.

Tax information exchange agreements: Gibraltar has signed tax information exchange agreements (TIEAs) with many countries, including the United States, Germany, France, and Australia. These agreements facilitate tax cooperation and reduce the risks of double taxation.

Application of European directives: Although Gibraltar is no longer part of the European Union following Brexit, it continues to apply certain European tax directives, which can be advantageous for companies operating in Europe.

Ongoing negotiations: Gibraltar is actively seeking to expand its network of tax agreements. Negotiations are underway with several countries to establish new double taxation agreements.

Use of holding structures: In the absence of direct agreements, many companies use holding structures in Gibraltar combined with entities in other jurisdictions to optimize their international tax situation.

Gibraltar vs other tax havens: an enlightening comparison

To understand Gibraltar’s appeal, it’s helpful to compare it to other popular offshore jurisdictions. Here’s how Gibraltar positions itself against its competitors:

Gibraltar vs Cayman Islands: – Tax rate: Gibraltar 12.5% vs Cayman Islands 0% – Transparency: Gibraltar offers more transparency and compliance with international standards – Access to European market: Gibraltar has an advantage due to its proximity and ties to Europe

Gibraltar vs British Virgin Islands (BVI): – Incorporation cost: Higher in Gibraltar, but with a better reputation – Regulation: Gibraltar has stricter regulation, offering more credibility – Business sectors: Gibraltar is more attractive for financial services and online gaming

Gibraltar vs Ireland: – Tax rate: Similar (12.5%) – Tax treaty network: Ireland has a more extensive network – Specialization: Gibraltar is more attractive for small businesses and startups

Gibraltar vs Singapore: – Location: Singapore offers better access to Asian markets – Business environment: Both offer business-friendly frameworks – Cost of living: Gibraltar is generally cheaper for expatriates

Gibraltar vs Malta: – Tax regime: Malta offers a more complex but potentially more advantageous tax refund system – EU membership: Malta is an EU member, offering more direct access to the single market – Specialization: Gibraltar is a leader in online gaming, Malta in financial services

Conclusion: Gibraltar, a strategic choice for your business

Gibraltar offers a particularly attractive tax and regulatory environment for international businesses. With its competitive 12.5% tax rate, no VAT, and numerous tax exemptions, this British Overseas Territory positions itself as a serious alternative to traditional tax havens.

Gibraltar’s advantages are not limited to taxation. Its political stability, English law-based legal system, and strategic position at the entrance to the Mediterranean make it an ideal platform for businesses looking to expand in Europe and Africa.

However, it’s important to note that establishing a company in Gibraltar requires careful planning and a thorough understanding of legal and tax obligations. Gibraltar’s authorities have strengthened their regulations to comply with international standards of transparency and anti-tax evasion, meaning companies must be prepared to meet strict compliance requirements.

Ultimately, Gibraltar represents an interesting option for entrepreneurs and investors seeking a jurisdiction that offers a balance between tax advantages, regulatory stability, and a positive international reputation.