Gibraltar is a British overseas territory that enjoys the Mediterranean climate along with an advantageous tax system. Sharing a border with Morocco and falling at the southern tip of Spain with only a narrow strip of land attaching them makes the Gibraltar community a closely knit one. This certainly makes for a rapidly growing market and banking services in Gibraltar are quick and easy to access without complications from higher-ups in the jurisdiction. Despite its often turbulent scenarios, the country's economic status and infrastructure always remain intact.

Such capability to maintain a stable financial environment and prosperity has brought global recognition to Gibraltar. Sturdy as the Rock of Gibraltar, the country's economy ranks as the fifth-best in the British territories. Thanks to these reasons, this small country is a host to several high net worth individuals (HNWIs) and corporations ranging from gaming to cryptocurrency and even insurance. If you are thinking of setting up your assets as a Gibraltar company, here is what you should know.

Key Benefits of Availing Banking Services in Gibraltar 

Gibraltar not only offers over 300 days of Mediterranean sunshine annually but also an extensive financial services industry. Being the choice of many international ventures looking to establish a presence in Europe, the banking sector generates most of the revenue in Gibraltar, with tourism coming right behind. Based on a legal system like the English Common Law, the country largely uses the Gibraltar Pound for transactions. 

Here are some benefits you will enjoy by utilizing banking services in Gibraltar.

Almost tax-free existence. Fortunately, companies in Gibraltar are not liable to pay tax in Gibraltar on what they earn outside of it. With only a 10% corporate tax and no tax on capital gains, inheritance, wealth, VAT, or on savings and investment income in Gibraltar, the country easily becomes one of the centers of the international finance system. 

Until the UK walked out of the EU, Gibraltar was a part of it and boasted of all the benefits of an EU territory.

Even after Brexit, the economic and political scene of the nation is stable and it is still a strategic location to avail bank services. 

International account holders can establish their bank accounts with minimal fuss. In the case of business accounts, it can be started in the presence of a Director and a Shareholder, regardless of nationalities and without a requirement for minimum capital. Nominees are permissible for these accounts and their names do not appear on public records. From the time of passing the EU Tax Savings Directive, Gibraltar banks have been able to attract more clients than ever due to their low tax jurisdiction. 

Another plus point is that accounts in Gibraltar require only low maintenance. Small companies especially are exempted from filing accounts and getting audited. Also, you can choose to keep the records anywhere else in the world and not locally. Connected to the rest of the world through high-speed networks as well as airways and waterways, the banking services in Gibraltar are easy to access for the world. 

Such modern and dependable approaches to financial services make some of the world’s biggest brands in the online gaming and blockchain industry flock to this country. The country shows consistent economic growth with a GDP per capita of £56,612 and only 1% of the unemployment rate. This can be attributed to the strong regulations the nation imposes which are in solidarity with crucial European and international treaties.

Moreover, most of the country's population speaks both English and Spanish which makes the community more receptive to international investors and adds up to a vibrant culture.

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Getting Started 

Setting up a bank account is relatively easy. The eligible applicants who fulfill the criteria set by the chosen bank for the selected type of account must fill out and submit an application form. It is submitted along with the necessary documents stated by the bank. 

Valid passport, driving license, national identity cards, and proof of residential address are the usual documents asked for.

These submitted documents should meet regulations similar to the ones in the UK. The bank account can only be opened after the applicant meets with a bank advisor to ascertain eligibility. 

As an example, one of the local banks is an easy solution to the woes of international clients. Making it easy for citizens from other countries to open accounts, the bank offers a simplified banking experience. Clients need to show requirement for foreign exchange by having incoming payments in one currency and payments out in another currency (for example receive USD and pay out in EUR or GBP or vice versa or else). This will grant them the opportunity to open an account remotely. 

In addition, foreign nationals can open accounts in Gibraltar if they have residency in Gibraltar with Category 2 status (see article about residency in Gibraltar).

Challenges Faced by Non-Resident Account Holders

If you are a non-resident looking to open an account in Gibraltar, know that their low tax status does not exempt you from facing slight challenges before offering their services to you. 

Chances are, the bank will look for your ties to Gibraltar. Without demonstrating ties, a foreign company can open an account and must deposit an amount between the US $200,000 to $1,000,000 initially. This is highly not recommended because some banks will push to show your local connections later on.

As mentioned previously, foreign accounts need to be deposited with huge sums on opening. New clients cannot make it with some US $10,000. Since most of Gibraltar's revenue comes from banking and wealth management, the banks will only pick clients from whom they can make profits off. This also means that the banks in Gibraltar expect the nonresident clients to invest in other products offered by the bank. 

Finally, if you are a citizen of a high or medium-risk country, you may not be able to open that Gibraltar international account that easily. This is completely in the interest of the private banks so if you need this account opened, you need to have overflowing wealth and an international account to back you up. Depending on the bank and type of account, age restrictions may also come into play.

Considered as a low tax state for international investors, Gibraltar is flourishing in this status. To the relief of HNWIs, not being a member of the EU does not bring drastic changes to the banking services of the country. Gibraltar still offers low taxes since there is practically no sales tax, no capital gains tax, no inheritance, wealth, or estate tax. It means that the tiny nation is still going to be an ideal spot for international investments. 

If you want to proceed with the account opening in Gibraltar, please contact our specialists and we’ll assist you. 

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