Gibraltar Key Facts for Hedge Fund Managers
April 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, rein surance companies and insurance mediation firms benefit from access to the single European market and therefore a potential client base of over 500 million people. Gibraltar’s legal system is based on English common law and its currency is the pound ster ling. Gibraltar is a peninsula linked to southern Spain in the Mediterranean and provides a high quality infrastructure and lifestyle. Alternative Investment Managers The Alternative Investment Fund Managers Directive was transposed into Gibraltar law o n the 22nd July 2013 and investment firms complying with the Directive can avail themselves of the European passport and market across the EU. A National Private Placement regime, meeting BaFIN’s standards, is in place. A Small AIFM regime will also be introduced shortly. The Financial Services (Experience Investor Fund) Regulatio ns 2012 provide professional investors with an excellent fund vehicle. Experienced Investor Fund (EIF) characteristics include pre-authorisation launch option, expedited start-up process and competitive start-up costs. EIFs can be established as Limited Partnerships or Protected Cell Companies (PCCs). Gibraltar was the first EU jurisdiction to offer PCCs legislation in 2001 and PCCs are widely used within EIF structures. Gibraltar’s investment firms are well supported by industry professionals with the ‘big four’ audit firms, international banks, lawyers and fund administrators all having established oper ations on the Rock. Regulation Gibraltar’s Financial Services Commission (FSC) is responsible for authorising and regulating investment firms and service providers. The FSC is responsive and business -minded and has a service level standard of 18 weeks for processing investment firm applications. Taxation The corporate tax rate for asset management firms is 10% and the maximum effective rate of tax for individuals is 25%. There is no capital gains tax, no inheritance tax and no tax on investment income. Gibraltar is exempt from the VAT system and therefore all services and goods are free of VAT. Employees of an asset management firm, who meet certain criteria, can avail themselves of the High Executive Possessing Specialist Skills (HEPSS) status and will only b e taxed on the first £120,000 of earned income. Exchange of Information 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