Gibraltar is a United Kingdom Overseas Territory, situated at the southern tip of the Iberian peninsula, overlooking Morocco. It has an area of seven square kilometres (2.6 sq mi) and shares a 1.2-kilometre (0.75 mi) land border with Spain. The Rock of Gibraltar is the major landmark of the region. At its foot is the densely populated city area, home to almost 30,000 Gibraltarians and other nationalities.

The development of the financial sector in Gibraltar has been facilitated by its location, favourable tax regime, stable government, status within the European Union (EU), no exchange controls, a legal framework based on the British system and the availability of a well-qualified labour force.

Gibraltar and the E.U.

Under the Treaty of Rome, Gibraltar lies within the European Union and is subject to all European Law but it is exempted from complying with the European Community's common customs tariff, common agricultural policy and the harmonisation of turnover taxes.

Regulation of financial services in Gibraltar

The  financial services sector in Gibraltar is closely regulated by the Gibraltar Financial Services Commission (GFSC). The GFSC supervises all Gibraltar banks, investment businesses, insurance companies and corporate service providers. Offshore company management licences in Gibraltar are only issued to firms and individuals who have satisfied extremely stringent professional, legal and financial requirements.

The chief aim these regulations is to ensure that the interests of the clients of the Gibraltar  sector always remain protected in the best possible way. Increasingly serving as an "offshore branch" of the City of London, Gibraltar has outstanding infrastructure, communications and work culture. The regulatory, legal and economic environment of Gibraltar has been recognised as benchmark towards which other offshore jurisdictions are often being compared.

Corporate taxation

Gibraltar offers a compelling tax package, and some of the tax benefits included are, no value-added tax, no capital gains tax, no inheritance tax, no wealth tax, no estate duty and no tax on certain types of investment income.

There are also special tax benefits available to High Net Worth individuals.