Gibraltar Incorporation Services
Gibraltar Taxation – Non-Resident Company
Gibraltar was the first European financial center to introduce the tax-exempt company (no-longer existing), as an offshore holding vehicle, and its unique status within the EU makes it the jurisdiction of choice for certain types of investors or traders.
Gibraltar non-resident company is not taxable in Gibraltar. It is a company, which is incorporated in Gibraltar, owned by non-residents and controlled by directors who reside and hold board meetings outside Gibraltar.
Non-resident company is another offshore business form which escapes taxation on foreign income. The Companies Taxation and Concessions Ordinance (amended) introduced the territorial scope of taxation, status for companies trading outside Gibraltar. A company registered in Gibraltar will not be liable to Gibraltar taxation, including income tax and estate duty, if it’s owned and controlled by non-residents of Gibraltar, does not trade in Gibraltar and does not remit income to Gibraltar.
Gibraltar Non-Resident Company
To be a non-resident company, a Gibraltar-registered company must satisfy the following criteria:
- The company must be owned by persons, who are not resident in Gibraltar.
- The company must be controlled (directed) by persons who are not resident in Gibraltar.
- The company may not trade or carry on business in Gibraltar with residents of Gibraltar. It may however trade with other exempt or qualifying companies or non-resident persons.
- The company must maintain its Company Register, Registered Office and Resident Secretary in Gibraltar.
- The company must not remit income to Gibraltar.
The last requirement effectively means that in order to maintain its no-tax status a Gibraltar non-resident company should not hold any bank accounts in a Gibraltar-situated bank. This simply means that the non-resident company would usually operate its bank accounts in another country.
Often it would be just a different offshore jurisdiction – like, Isle of Man, for example. It may also be practical to open the offshore bank account in a country situated closer to the place of the actual business of the company – or to the actual location of its beneficial owners.
If the above criteria is satisfied, a Gibraltar company will be considered “non-resident”. As such, it will not fall under the Gibraltar tax system by definition and will not be required to register for Gibraltar taxation purposes. This also means that, unlike the tax-exempt company, the non-resident company can in no circumstances be considered as a Gibraltar taxpayer.