The British Overseas Territory of Gibraltar is a gorgeous, sunny island just off Spain’s southern coast. Its bustling, happy community lives in the shadow of the famous Rock of Gibraltar, a gargantuan limestone deposit responsible for attracting hordes of tourists to Gibraltar. The local economy thrives not only during tourist season, but also year-round, and Gibraltar has notoriously generous tax concessions and rates offered to financial professionals operating on the island. Since the Strait of Gibraltar, between Spain and Morocco, is one of the busiest shipping lanes in the world, Gibraltar sees activity throughout the year. Because it is a financial centre of the European Union, increasing numbers of European investors and financial professionals are turning their attention to Gibraltar in pursuit of making ever-increasing sums of money.
What This Means for You
If you’re setting up a Gibraltar trust, the first thing you want to know is how much of that money you’re actually going to see. In some parts of the world, the ultra-wealthy are taxed at a far higher rate than the general population. In fact, at one point in England’s recent history, tax rates were higher than eighty percentof the top income earners. Under such a regime, you wouldn’t see much of your hard-earned money, but Gibraltar offers a solution. Gibraltar boasts the absence of a Capital Gains Tax and VAT, and there’s no Inheritance Tax either. If you’re looking to preserve and consolidate your wealth, Gibraltar, with its English-speaking population and Mediterranean climate, is an attractive option. The island is extremely friendly to the wealthy, which is why so many of those working in the international finance sector have chosen it as a home for them, their families or their businesses. You, too, can call Gibraltar home, or at the very least you can set up a trust that will.
Trusts can be a delicate, emotionally charged matter to deal with. It’s not uncommon for them to become the subject of familial infighting and resentment, and that’s before the government takes its cut of your hard-earned wealth. Gibraltar, with its low taxes, offers a haven for setting up and executing matters pertaining to a trust, and allows you to do so without the additional stress of looming tax laws and government agents.
Even the wealthiest of the island’s residents only pay a maximum of twenty-five percent of income tax – that’s a modern figure as of 2016, but the Gibraltarian government has actually committed to lowering that tax rate over the next few years.
Maximising Your Investment
Of course, setting up a trust or moving a pre-existing trust to Gibraltar takes a fair amount of professional expertise. You’ll definitely want to discuss your plans with professionals in order to ensure that you’re getting the most out of your decision. Find yourself a Gibraltarian trust group centred on the island to assist you with your trust. One that caters not only to individuals, but also to large companies, is your best bet, as these trust groups are capable of delivering exemplary customer service and are used to handling large sums of money.