Gibraltar is considered to be one of the most prime locations for opening and setting up a business of your own in today’s date. There are a multitude of reasons behind that with the major ones being Gibraltar's lax tax laws, ease of company creation and amazing investment opportunities.

In the post pandemic period where the world has undergone a drastic economic change and many countries in the world are still recovering from their economic losses, Gibraltar is one of the only territories that has not only survived the ordeal with ease but is also making hasty recovery with whatever losses they did incur during the process. 

As matters stand, Gibraltar continues to be many businessmen’s top choice when it comes to multiplying the value of their assets. To do so, however, one needs to keep up-to-date with the country’s various economic activities and ongoing news. 

In this post, we at Mundo will help you do exactly with various important news headlines about taxes, businesses opportunities and investments. Let us proceed with these headlines directly without further delay. 

All FTX subsidiaries in Gibraltar to Get Licensed by Regulator 

FTX, one of the largest cryptocurrency exchange platforms out there, has announced exciting news of expanding operations to Gibraltar and the Bahamas by opening new branches there. These subsidiaries are fully licensed by respective local regulators that have allowed the subsidiaries to function without any excess difficulty. 

Gibraltar’s own subsidiary for FTX, which is Zubr Exchange, has already transacted with the Gibraltar Financial Services Commision to function as a supplier of DLT technology to all individuals and public aspects of the country. Zubr itself was a relatively small platform that focused on digital assets derivatives until it was acquired by FTX at the start of 2021. 

To those who keenly followed this particular turn of events, it has not come as a surprise to anyone that these companies decided to establish a hold in the country’s economy. Zubr Exchange states that it is going to continue operating in Gibraltar for as long as FTX is integrated with the platform.

Many experts agree that is a huge step towards establishing an economy that is truly updated and relevant to the events of the 21st century. The quicker the economy gets digital, the better it is for them. 

The Trio of Spain, Gibraltar and the UK reaches a Tax Residency Agreement

In a fairly recent turn of events, Brexit triggered a new review and tax reform between how the trio of Spain, Gibraltar and the UK work out together an effective plan for declaring tax residence and also for tackling individuals and organizations avoiding tax. These reforms were established on 1st July 2021 and are already in place as of the moment we speak about them. 

Ask for more information

This tax review issued by Brexit regards a number of aspects and issues, such as - 

-The cooperation of taxes between the country of Spain and the territory of Gibraltar. 

-The criteria for tax residence for people and companies. 

-Procedures for administrative cooperation. 

-Eliminating tax fraud and all other adverse effects that can be caused by the current state of the tax system. 

While it may seem relatively inconsequential in the grander scheme of things, this review has the potential to change millions of lives who operate in both territories. For example an individual who works in Gibraltar but is a resident of Spain can benefit from this tax review a lot. This can have a considerable number of consequences on residents who wish to live like that and effectively transform the way their tax returns work. 

This agreement effectively declares that the day EU laws stop being applied in Gibraltar because of the effects of Brexit, a legislation with equal power to that of EU laws and procedures will start being maintained in Gibraltar regarding transparency, administrative cooperation, harmful tax practices and all forms of money laundering operations. 

The UK's Hold on Gibraltar is Challenged by Brexit

When the UK exited out of the European Union, the shockwaves of its consequences were felt as far as Gibraltar, one of UK’s only territories that is still intact till date. On paper this shouldn’t be much of a problem. 

But when you realize that most of Gibraltar’s economy depends on the flow of workers and visitors that come from Spain, you will come to the realization that Brexit allowed this exact flow to be regulated while the UK by itself has not paid any special attention to the fact. 

What border protocols should be enforced and what protocols should be removed are still questions whose answers are being debated till date, even after a considerable time of the UK and EU breaking apart from each other.

While Gibraltar may not be a country in itself to brace the full-scale impact as other European countries felt, it still has had to face adverse consequences directly because of the UK’s brash decision. 

Even though Gibraltar is a British overseas territory, it is hundreds of miles away from the UK and many experts even wonder if it should be called a part of the UK considering it is still physically attached to mainland Spain. 

Regardless of what the rest of the world thinks, however, it is clear that Gibraltarians themselves wholeheartedly want to be a part of the UK and are proud to be British Citizens. That being said, when Brexit took place, it ensured that Gibraltar and Spain were divided apart by their own category of country. 

Spanish officials, though, don’t seem to mind this drift and actually believe that Brexit was a crucial factor for ensuring that Gibraltarians and Spaniards share the same pro-EU interests.

Contact us