Gibraltar a unique AIFM jurisdiction within the EU by Philip Canessa, Gibraltar Finance Centre
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Gibraltar in brief Peninsula linked to southern Spain UK Overseas Territory Self-Governing Self-financing Population: 30,000 English common law system
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Gibraltar in brief DIVERSIFIED ECONOMY Financial services e-gaming Shipping and port services Tourism Pound Sterling (GBP) currency
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Gibraltar in brief WORKFORCE Highly educated and trained Reasonable costs No job quotas
No restrictions for EU nationals Also applies to Swiss citizens
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Gibraltar & the EU EU Treaties applicable to Gibraltar Exemptions from: VAT Customs Union
Common Agriculture Policy
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Why Gibraltar? International financial centre within the EU and the single market Passporting of financial services Responsive whilst regulated to EU and UK standards
Favourable fiscal regime High-quality infrastructure High-quality lifestyle
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Regulation in Gibraltar Financial services regulation matching EU and UK standards The Financial Services Commission (FSC) is a wholly independent regulatory authority
Periodic audits of legislation and supervisory standards in FSC by UK experts
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Exploding the myths NO POLITICAL RISK British for over 300 years Constitutional guarantees on Gibraltar’s sovereignty Recently restated by David Cameron, British Prime Minister
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Exploding the myths REPUTATIONAL RISK Implementation of UK standards and EU Directives FSC is a model regulator Gibraltar is FATF and IMF reviewed US FATCA / UK FATCA / E5 Pilot programme TIEAs and Multilateral convention Tax evasion - criminal offence
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Experienced Investor Fund regime pre-launch approval mechanism no investment or borrowing restrictions fund may be self-managed expedited start-up process and competitive start-up costs no limit to number of investors reasonable ongoing operating costs tax neutrality
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Experienced Investor a person or partnership whose business is investing or providing investment advice a body corporate with net assets > €1M, or part of a group with net asets > €1M the trustee of a trust with trust assets > €1M an individual whose net worth is > €1M a participant who invests a minimum of €50,000 in an EIF and has been professionally advised a professional investor, as defined under the Financial Services (Markets in Financial Instruments) Act 2006 a participant in a fund that has redomiciled to Gibraltar with the regulator’s permission 11
AIFMD–why Gibraltar? fully compliant in respect of EU business and fund legislation investment firms will be able to comply with AIFMD and avail themselves of the European passport and market across member states quick and efficient regulatory process tax of 10% on profits of investment managers professionals can apply for a specialist tax category limiting annual personal tax to GBP 30,000 12
Gibraltar’s Budget June 2013 GDP growth touching 7.8% per annum Ranked in the top 20 in global terms of GDP growth and placed in the top 10 ranking of GDP per capita Gross public debt has been reduced to 27.5% and has been forecast to reduce further during the current financial year Net public debt stands at c.24% of GDP Budget surplus for financial year 2012/2013 is forecast to be a record Investment in capital projects include a new airport terminal and a UEFA standard stadium 13
Powerful Tax Package 10% corporate tax 25% maximum effective tax rate for individuals No tax on investment income No capital gains tax No wealth tax No inheritance tax No estate duty No VAT No exchange control
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Single Market Freedom Investment Services
Banking and Insurance Freedom of establishment Freedom of services
No separate licensing procedures Real benefits to institutions with targets in EEA territories
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Increased Business Activity Asset management
Funds administration Swiss portfolio managers Insurance Private banking Derivatives, securities and commodities trading Securitisation and repackaging e-Gaming
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High Net Worth Individualss Appropriate accommodation in Gibraltar for their exclusive use Not resident in Gibraltar for the previous five years Tax GBP24,000 min., c.GBP30,000 max. Revised regulations provide more flexibility on residence, permitted activities and for spouses of HNWI’s
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Legal System Only common law jurisdiction in continental Europe (courts, statutes and principles of equity based on English law) Very well developed expertise (funds, trusts, company management and private banking)
Separate and distinct jurisdiction Own legislature Business understanding of civil law systems
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Professional Services 16 Banks 27 Investment firms “Big Four” audit accounting firms International and UK qualified lawyers 55 Insurance companies 68 Company managers / professional trustees
4 e-Money firms
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Property in Gibraltar ďƒŚ Modern office accommodation ďƒŚ High quality residential accommodation
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Gibraltar Lifestyle Average 300 days of sunshine per annum c. 3 million expatriates live in and around the Iberian peninsula Golf, polo, sailing, skiing, the perfect location for all sports 60 top class golf courses in the region, most very near to Gibraltar
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Further Information Finance Centre, Gibraltar
Responsible for the development of new business A centralised source of information and direction
Tel: +(350) 200 50011 philip.canessa@financecentre.gov.gi
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