Overview of the Country
Gibraltar, an overseas territory of the UK, is part of the EU. With its special terms of EU membership, Gibraltar provides an extensive selection of products and services that meet the requirements of both local and international investors. As a modern, vibrant, low tax jurisdiction, it likewise has first rate professional infrastructure that is fully compliant with European standards of regulation. The numerous international trading entities and financial services companies, which already have a base in Gibraltar, are testament to this.
Gibraltar is adjacent to known drug trafficking and human smuggling routes, but the territory is heavily policed on land and at sea due to the risk of these activities occurring within its borders or territorial waters. Gibraltar is exposed to money launderers located in drug producing centers in Morocco and drug consumption and distribution networks in Spain. With the establishment in southern Spain of organized criminal activities from Eastern Europe, there is potential for launderers to use Gibraltar as a base for money laundering. These risks are mitigated by the small coastline and effective policing. Border controls between Gibraltar and Spain also help deter potential money launderers wishing to use Gibraltar for their activities.
In 2013, following allegations from Spain that Gibraltar was a hub for money laundering and tax evasion, the European Commission conducted an investigation clearing Gibraltar and stating that there are no “well-founded” claims against Gibraltar regarding money laundering and tax evasion.
The economy has often been described as one that is ‘running on all cylinders’. Its main economic growth attributers include general trade, the provision of financial services and communications (including e-gaming), tourism and maritime activities
Gibraltar has an international financial center, which is small internationally but large in comparison to its domestic economy. The financial services sector has strong ties to London, the Crown Dependencies, and other financial centers.
Experienced Investor Fund regime imposes no limitations on the types of asset classes that can be invested in or on asset concentration. Gibraltar therefore permits the establishment of funds that could not be established in many of the other principal European Funds jurisdictions. A Gibraltar Experienced Investor Fund does not need to have an appointed investment manager. In such instance the fund would be “self-managed” as the investment management function would fall directly under the responsibilities of the fund’s board of directors.
A Gibraltar Private Fund is an extremely useful, simple and efficient fund structure. This type of fund is not listed on any stock exchange and cannot have more than 50 investors. Although there must be some identifiable link between the investors in a Private Fund, there are no investment restrictions whatsoever.
Treaties and Agreements
As a part of the EU, Gibraltar is required to transpose all EU legislation. Gibraltar has a comprehensive range of AML/CFT laws. The criminal laws on money laundering have been consolidated in draft form, and powers presently available only in drug-related money laundering cases are being extended to money laundering cases involving the proceeds of other crimes. As of 2011, tax evasion is considered a predicate offense for money laundering.
Gibraltar, as a UK overseas territory, cannot sign or ratify international conventions in its own right. Rather, the UK is responsible for Gibraltar’s international affairs and may arrange for the ratification of any convention to be extended to Gibraltar. The UN Convention against Transnational Organized Crime was extended to Gibraltar in 2007. The 1988 UN Drug Convention, the UN Convention against Corruption, and the International Convention for the Suppression of the Financing of Terrorism have not yet been extended to Gibraltar, although the legislation for such extension is in place.
Overview of Opportunities in Gibraltar
Relevant Industries to Focus On
Gas, Oil, and Petroleum
Healthcare and Medical Equipment