Gibraltar Key Facts – Funds and Asset Management
March 2015
Gibraltar is a self-governing and self-financing parliamentary democracy within the European Union. A British Overseas Territory, Gibraltar’s economy is prosperous and highly-diversified including financial services, e-gaming, shipping and tourism. Given its status within the EU, Gibraltar-licensed banks, investment services firms, UCITS, insurance companies, reinsurance companies and insurance mediation firms benefit from access to the single European market and therefore a potential client base of over 500 million people.
The Alternative Investment Fund Managers Directive was transposed into Gibraltar law on the 22nd July 2013. The Directive seeks to regulate the non-UCITS fund sector.
The Financial Services (Experience Investor Fund) Regulations 2012 provide professional investors with an excellent fund vehicle. Experienced Investor Fund (EIF) characteristics and advantages are: No investment or borrowing restrictions No limit to number of investors Pre-authorisation launch option Expedited start-up process and competitive start-up costs Tax neutrality Requires at least two Gibraltar resident directors
Gibraltar was the first EU jurisdiction to offer protected cell companies (PCCs) legislation in 2001 and PCCs are widely used within EIF structures.
Gibraltar’s Financial Services Commission (FSC) is responsible for authorising and regulating investment firms and service providers to EIFs. The FSC’s service level standard for processing investment firm applications is 18 weeks.
The corporation tax rate for asset management firms is 10% and the maximum effective rate of tax for individuals is 25%.
Employees of an asset manager, who meet certain criteria, can avail themselves of the High Executive Possessing Specialist Skills (HEPSS) status and will only be taxed on the first £120,000 of earned income, which at the current rate of income tax caps their tax at around £30,000.
Gibraltar has exchange of information agreements to the OECD standard with some 77 countries and territories around the world. It has signed a FATCA Intergovernmental Agreement with the United Kingdom, and with the United States and has signed a formal commitment to the Common Reporting Standard on automatic exchange of information with more than 50 countries.
Within the European Union Single Market HM Government of Gibraltar • Suite 761, 6
th
Floor, Europort • Gibraltar GX11 1AA
t +350 20050011 f +350 20051818 e info@gibraltarfinance.gi w gibraltarfinance.gi