Jurisdictions - Gibraltar

General Information - 

Gibraltar has an extensive service-based economy, dominated by financial services and tourism.

Recently, many bookmakers and online gaming operators have relocated to Gibraltar to benefit from operating in a regulated jurisdiction with a favourable corporate tax regime. However, this corporate tax regime for non-resident controlled companies is due to be phased out by 2010.

Tourism is a significant industry. Gibraltar being a popular stop for cruise ships and attracts day visitors from resorts in Spain.

It is also a popular shopping destination with all goods and services being VAT free. Many of the large British high street chains have branches or franchises in Gibraltar.

The Gibraltar Government state that economy grew in 2004/2005 by 7% to a GDP of £599,180,000. Based on statistics in the 2006 surveys, the Government statisticians estimate it has grown by 8.5% in 2005/6 and by 10.8% in 2006/7 and that the GDP is probably now around 730 million. Inflation was running at 2.6% in 2006 and predicted to be 2% to 3% in 2007. Speaking at the 2007 budget session.


Banking & Currency

A number of British and international banks have operations based in Gibraltar. Jyske Bank claims to be the oldest bank in the country, which began operations in Gibraltar in 1855. An ancestor of Barclays Bank, the Anglo-Egyptian Bank, entered in 1888, and Credit Foncier, now Credit Agricole Indosuez, entered in 1920.

In 1967, Gibraltar enacted the Companies (Taxation and Concessions) Ordinance, which provided for special tax treatment for international business. This was one of the factors leading to the growth of professional services such as private banking and captive insurance management.

Gibraltar has a common law legal system and access to the EU single market in financial services. The Financial Services Commission, which was established by an ordinance in 1989 that took effect in 1991, regulates the finance sector.

Currently the FSC has licensed about 17 banks to provide full banking services in Gibraltar.

The Government of Gibraltar issues banknotes that are legal tender alongside Bank of England banknotes in Gibraltar.

Clearing and settlement of funds is conducted in sterling, and Gibraltar banknotes in circulation bear the words "Pounds sterling". Most retail outlets in Gibraltar unofficially accept the euro.

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