Gibraltar is a British Overseas Territory with its own legal and tax system.
Gibraltar is not a member state of the European Union. On July 14, 2026, the United Kingdom and the European Union signed a new agreement concerning Gibraltar, which will come into temporary effect on July 15, 2026.
The agreement relates specifically to the regulation of the border between Gibraltar and Spain, the movement of goods, and economic relations.
1. Main Legal Forms of Companies
The formation of companies in Gibraltar is regulated by the Companies Act 2014.
The legislation provides, in particular, for:
- Companies limited by shares.
- Companies limited by guarantee.
- Unlimited liability companies.
For international trade activities, it is possible to use the structure of a limited liability company.
A company can acquire property, enter into contracts, and assume obligations in its own name.
2. Company Formation Procedure
When establishing a company, it is necessary to check the acceptability of the chosen name and submit the registration documents. These include the registration application, the memorandum of association, and the articles of association. The company must have a registered address in Gibraltar.
Registration is carried out at Companies House Gibraltar.
Persons providing company formation and management services on a commercial basis are subject to specific licensing requirements.
Registered companies are required to submit the relevant annual reports and maintain other obligations as stipulated by law.
3. Corporate Taxation
In 2026, the standard corporate profit tax rate in Gibraltar is 15%. A 20% rate applies to certain companies, particularly those providing utility services or holding a dominant position. Gibraltar's tax system is based on the assessment of the origin of income and its connection to the relevant territory. However, the fact that a company's customers, contracts, or shareholders are located outside Gibraltar is not sufficient to establish the absence of tax liability. It is necessary to assess the company's actual activities, the circumstances of income generation, the management structure, and applicable tax norms.
4. Gibraltar and EU Trade Relations
In 2026, significant changes occurred in the relations between Gibraltar and the European Union. Changes in the taxation of goods imports and circulation have also been planned in connection with the implementation of the new agreement.
Therefore, the previously widespread claim that there are no customs duties in Gibraltar cannot be used as a general rule. The legal conditions for imports and exports must be assessed according to the type of goods, the transaction, and the applicable trade regime.
5. Legal Issues for Foreign Investors
When creating a company in Gibraltar, it is important to clarify:
- The actual place of management of the company.
- Tax residency.
- Licensing requirements for activities.
- Requirements for actual beneficiaries and financial control.
- Accounting and annual reporting obligations.
- Tax implications as defined by international agreements.
The establishment of a company in Gibraltar should be viewed as a separate legal and economic project, rather than a means of unconditional tax exemption.
Ilex Law Firm can provide legal advice on international transactions and corporate structures, collaborating with local experts in Gibraltar as needed.