|Location||Southwestern Europe; the southern end of the Iberian Peninsula|
|Population (2012)||30 001|
|EU Status||part of the EU|
|Dependent Territory Of||United Kingdom (British Overseas Territory)|
|National Currency||GIP (Gibraltar pound)|
|Credit Ratings (as of Sep 2016)|
|Withholding Tax||0.0 - 0.0%|
|Exchange on Request||27 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 08 May 2014, Model 1|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Banking Supervision||Financial Services Commission|
|Banking Sector Structure|
|Number of Banks||13|
|List of Banks in Gibraltar|
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in Gibraltar are shown in Table 1.
|Natural person, resident||0.0||0.0|
|Natural person, non-resident||0.0||0.0|
There are 3 ways for jusrisdictions to exchange information on tax matters:
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Gibraltar signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Gibraltar and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Gibraltar signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Gibraltar has FATCA agreement with the U.S. in effect since 08 May 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Gibraltar are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Gibraltar financial accounts hold in U.S. financial institutions will be reported to Gibraltar authorities.
FATCA and European countries
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Gibraltar are summarised in Table 2.
|Scheme Participants||all credit institutions operating in Gibraltar, branches of non-EEA banks, branches of Gibraltar banks abroad|
|Scheme Exemptions||branches of EEA-banks (covered by their home countries)|
|Covered Currencies||EEA currencies|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||GBP|
Table 2. Deposit guarantee scheme in Gibraltar.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
EEA currencies are all official currencies of EEA members. Switzerland is not a EEA member, but because CHF is the official currency of Liechtenstein, CHF also belongs to EEA currencies.
So, only the deposits made with Gibraltar banks in the following currencies are covered by the deposit guarantee scheme of Gibraltar
|RON||Romanian new leu|
It should be also noted that deposits in non-EEA currencies (for example, USD and JPY) are not covered by the Gibraltar deposit guarantee scheme.
Deposit Guarantee Schemes in European Territories
Currently there are 13 credit institutions operating in Gibraltar.
All the credit institutions operating in Gibraltar can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||5|
There are 5 branches of foreign banks from 3 different countries in Gibraltar. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|