General jurisdiction information:
Gibraltar is an overseas UK territory situated on the southern coast of the Iberian Peninsular on the Strait of Gibraltar connecting the Mediterranean with the Atlantic Ocean. It is separated from Spain by a neutral area.
According to 2015 figures, the population is 29,800 and the capital city is Gibraltar (which is also a port).
Gibraltar is a European Union member by proxy through the UK but it enjoys a separate jurisdiction and tax system. Because of its special status it is released from any customs duties or general agricultural regulations. It is not part of the Schengen Area but has signed the Hague Convention.
The major contributors to the Gibraltar economy are services, finance, tourism and shipping sectors.
The official language is English with Spanish widely spoken.
The official currency is the Gibraltar Pound (GI£) with its rate of exchange linked to British Sterling.
The incorporation and operation of commercial companies is governed by the Companies Law of 1984, as amended.
Because of enhancements to its tax laws, nowadays Gibraltar is more a low tax than an offshore jurisdiction.
The jurisdiction offers incorporation of various legal corporate forms, but for practical considerations the most in-demand companies among foreign investors are non-resident carrying out business outside of Gibraltar and having no property within the territory. Such companies are widely used in international trade, the provision of services, investments, administration and ship management. Non-resident companies are exempt from tax on profit generated outside of the jurisdiction.
Incorporation of an on-shore company is especially attractive for tax optimisation as the effective corporate tax rate is 10% with no VAT and social contributions are low.