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Offshore Trusts Report: Gibraltar

Legal Framework And Formation Rules and Fees

Trust management, particularly for wealthy UK individuals, has been a traditional business for Gibraltar. Successive tightenings of UK anti-avoidance legislation have reduced the possibilities for UK citizens, but trust work continues to be significant; many Collective Investment Funds are of course based on Trusts.

The basic law of trusts is contained in the Gibraltar Trustee Ordinance, which is virtually a copy of English trust legislation. Gibraltarian legislation affecting trusts also includes the Perpetuities and Accumulations Ordinance, the Trustee Investments Ordinance, the Bankruptcy Ordinance and the Trusts (Recognition) Ordinance, and the Financial Services (Conduct of Fiduciary Services Business) Regulations 2006.

Appeal is to the Privy Council.

The Hague Convention has been implemented, but there are no provisions for the exclusion of foreign inheritance laws or for the nonrecogition of foreign judgements. Under the Bankruptcy Ordinance there is statutory protection against creditors for asset protection trusts, providing the settlor is an individual, and was not insolvent at the time of the disposition, nor became so as a result of it.

Trust documents are in English, and there are no requirements for registration except that Asset Protection Trusts must be registered with the Registrar of Dispositions. The normal perpetuity period of a Gibraltar trust is 100 years.

There are no restrictions on the accumulation of income during the perpetuity period. Legislation has not yet been introduced to provide for purpose trusts.

There is no stamp duty. Trust income is exempt from tax under the Income Tax (Allowances, Deductions and Exemptions) Rules 1992 if:

  • the trust is created by or on behalf of a non-resident person; and

  • the income either accrues or is derived outside Gibraltar, or in the case of income received by a trust would, if it had been received directly by the beneficiary, not be liable to tax under the Income Tax Ordinance; and

  • except in the case of a trust created before 1/7/83, the terms of the trust expressly exclude residents of Gibraltar (as beneficiaries).

NB: Interest income received from a Gibraltar bank is normally exempt from taxation, although the introduction of the European Savings Tax Directive in 2005 has affected this.

The Report

Offshore Trusts Guide: Introduction

Offshore Trusts Guide: Jurisdictions

Bahamas Barbados Bermuda British Virgin Islands Cayman Islands Cook Islands Cyprus Gibraltar Guernsey Isle of Man Jersey Liechtenstein Madeira Malta Mauritius Monaco Nevis New Zealand Panama Seychelles Turks & Caicos Vanuatu

Gibraltar News

Gibraltar To Offer Foundations
Tuesday 4/4/2017
Gibraltar's Parliament recently passed a bill permitting the establishment of Private Foundations.

Gibraltar Acts To Preserve QROPS Status
Monday 3/4/2017
Gibraltar has made new pension regulations to maintain its attractiveness as a jurisdiction from which to transfer UK pensions.

International Support For Beneficial Ownership Info Exchange
Wednesday 27/4/2016
More than 20 jurisdictions have signed up to a pilot project to exchange data held on beneficial ownership registers and registers of trusts, according to UK Chancellor George Osborne.

OFCs Join G5 Beneficial Ownership Initiative
Monday 25/4/2016
Bermuda, Gibraltar, and the Isle of Man Governments have agreed to support an initiative on the automatic exchange of beneficial ownership information, which is being spearheaded by the five largest economies in the European Union.

Gibraltar To Introduce Foundations
Wednesday 28/10/2015
The Government of Gibraltar has launched a consultation on the introduction of new legislation to permit the creation of private foundations.

DeMontford Bell Expands Malta Operations
Wednesday 15/7/2015
DeMontford Bell, the UK-headquartered financial introducer, has announced that it is to expand its permanent operations in Malta to support the high volume of business migrating there.

Gibraltar Consults On Financial Services Fee Increases
Monday 23/2/2015
The Gibraltar Financial Services Commission has launched a consultation on increases to fees for certain regulated entities – generally of 10 percent – for the 2015/16 financial year.

Guernsey Named Europe's Top Captive Domicile
Wednesday 28/1/2015
Guernsey has been named European territory of the year for captive insurance business for the third year running at the UK Captive Services Awards.

Spain To Probe Homeowners' Gibraltar Ties
Friday 5/9/2014
Spain's Finance Minister, Cristóbal Montoro, has announced that the Government will look into the financial affairs of Spanish homeowners with ties to Gibraltar.

Gibraltar Delays Introduction Of New Companies Law
Thursday 4/9/2014
Gibraltar has agreed to industry requests to delay the introduction of its new Companies Act and Insolvency Act until November 1, 2014.