Economy and Banking Sector of Gibraltar

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)
Economy
National Currency GIP (Gibraltar pound)
Credit Ratings (as of Sep 2016)
    Fitch-
    Moody's-
    S&P-
Taxation
Withholding Tax 0.0 - 0.0%
Information Exchange 
    Exchange on Request 27 signed agreements
    Automatic Exchange starts in September 2017
FATCA IGA in effect since 08 May 2014, Model 1
Banking Sector
Deposit Guarantee Scheme 
    Maximum Protected Amount 100 000 EUR
Banking Supervision Financial Services Commission
Banking Sector Structure 
    Number of Banks13
 List of Banks in Gibraltar

Taxation in Gibraltar

Withholding Tax

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.

Dividends Interest
Natural person, resident 0.00.0
Natural person, non-resident 0.00.0
Table 1. Withholding tax rates in Gibraltar.
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Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

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):

 Australia
 Austria
 Belgium (Jun 2014)
 Denmark
 Faroe Islands
 Finland
 France
 Germany
 Greenland
 Guernsey (Mar 2014)
 Iceland
 India (Mar 2013)
 Ireland
 Malta
 Mexico (Aug 2014)
 Netherlands
 New Zealand
 Norway
 Poland (Dec 2013)
 Portugal
 South Africa (Jul 2013)
 Sweden
 United Kingdom
 United States

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):

 Greece (Jan 2013)
 Italy
 Turkey

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.

Further Information:
Automatic Exchange of Information on Financial Accounts
Countries Which Will Not Automatically Exchange Account Information

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FATCA

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.

Further Information:
FATCA and European countries

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Gibraltar Banking Sector

Deposit Guarantee Scheme

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:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Gibraltar are summarised in Table 2.

Scheme Participantsall credit institutions operating in Gibraltar, branches of non-EEA banks, branches of Gibraltar banks abroad
Scheme Exemptionsbranches of EEA-banks (covered by their home countries)
Covered CurrenciesEEA currencies
Maximum Protected Amount100 000 EUR
Paid In CurrencyGBP

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

 EUREuro
 BGNBulgarian lev
 CZKCzech koruna
 DKKDanish krone
 HUFHungarian forint
 ISKIcelandic króna
 CHFSwiss franc
 NOKNorwegian krone
 PLNPolish złoty
 RONRomanian new leu
 SEKSwedish krona/kronor
 GBPPound sterling

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.

Further Information:
Deposit Guarantee Schemes in European Territories

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Banking Sector Structure

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.

CategoryNumber of Banks
Banks8
Branches of foreign banks5

Table 3. Number of banks by category in Gibraltar.

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 OriginNumber of Branches
 United Kingdom3
 Jersey1
 Luxembourg1

Table 4. Number of branches of foreign banks in Gibraltar grouped by country of origin.

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