Presentation to European Family Office Forum 2014

AN EMERGING JURISDICTION FOR THE FAMILY OFFICE NOVEMBER 2014

Gibraltar in brief

• UK Overseas Territory, peninsula linked to Southern Spain • Self-governing, self-financing • Population of 30,000 • English common law • Diversified economy; Financial services, Egaming, Shipping & port services, Tourism

Gibraltar and the European Union EU Treaties applicable to Gibraltar and transposition is up to date Exemptions from:

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VAT

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Customs Union

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Common Agriculture Policy

Passporting of financial services permitted throughout EU jurisdictions

Regulation in Gibraltar Financial services regulation in line with EU and UK standards The Financial Services Commission (FSC) is an independent regulatory authority Periodic audits of legislation and supervisory standards in FSC by external specialists EOI arrangements in place with over 80 countries and territories OECD Phase 2 peer review completed; “Largely Compliant� rating

Signatory to the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA) US FATCA / UK FATCA / Common Reporting Standard

Legislation Major focus on legislative “update & refresh” during 2014/2015: • • • • • • • •

Foundations Private Trust Companies Anti Forced Heirship Customer Safeguard Accounts Purpose Trusts Perpetuity Period Companies Act Limited Liability Partnerships

Private Funds; “Friends and family” structure •

Private scheme that is not listed on a stock exchange, and marketing of the fund is limited to 50 investors

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Private funds do not require authorisation from the FSC,

but they do need to register with the FSC The 3 most common structures for private funds; 1. Gibraltar private limited company 2. Unit trust

3. Gibraltar limited partnership

Experienced Investor Funds (EIFs)

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Pre-launch approval mechanism (speed to market)

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Expedited start-up process, competitive start-up costs

No investment or borrowing restrictions Fund may be self-managed

No limit to number of investors Reasonable ongoing operating costs Tax neutrality Two Gibraltar resident directors Fund administrator can be based in another FSC-

approved EU jurisdiction

High net worth residence (Category 2)

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Appropriate accommodation in Gibraltar for their exclusive use

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Not resident in Gibraltar for the previous five years

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Income tax capped at between GBP24,000 and GBP30,000

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Revised regulations provide more flexibility on residence, permitted activities and for spouses of HNWIs

High Executive Possessing Specialist Skills (HEPSS)

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Geared towards senior executives, with approval required for the HEPSS application from the Finance Centre Director

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Relevant to asset managers, and other finance sector executives operating in the jurisdiction

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Appropriate accommodation in Gibraltar for their exclusive use

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Income tax capped at GBP30,000, on the first GBP120,000 of income

Powerful and competitive tax package

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10% corporate tax

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25% maximum effective tax rate for individuals

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No VAT

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No tax on investment income

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No capital gains tax

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No wealth tax

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No inheritance tax

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No estate duty

“Hard” infrastructure

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15 Banks

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21 Investment firms

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“Big Four” audit accounting firms

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International and UK qualified lawyers

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10 Fund administrators

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56 Insurance companies

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68 Company managers / professional trustees

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4 E-money institutions

“Soft” infrastructure

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Improving hospitality infrastructure; one 5-star, three 4-star hotels; another 5-star hotel in planning

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Increasing and improving stock of residential accommodation available

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New commercial and office space under construction Improving transport infrastructure; road access to

new airport terminal

Senior Executive Team Michael Ashton – insurance michael.ashton@financecentre.gov.gi

Philip Canessa – funds philip.canessa@financecentre.gov.gi Victor Galliano – multi disciplinary based in London victor.galliano@financecentre.gov.gi Paul Astengo – private clients paul.astengo@financecentre.gov.gi

FURTHER INFORMATION Gibraltar Finance, Gibraltar Responsible for the development of new business A centralised source of information and direction Tel: +(350) 200 50011

Gibraltar Finance @GibFinance facebook.com/GibraltarFinanceCentre youtube.com/GibraltarFinance