Offshore Banking Gibraltar
Gibraltar, meaning, the “mountain of Tariq” is one of the remaining British overseas territories. Gibraltar is situated on the southernmost tip of the Iberian Peninsula, and shares a northern border with Spain. “The mountain of Turiq” refers to the geological formation that is recognized globally as the Rock of Gibraltar.
Strong as a rock, Gibraltar has been ranked as the 5th most stable and prosperous British territory. One of the main contributing factors for this is Gibraltar’s successful extensive financial services industry. The generation of revenue is dominated by financial services in Gibraltar, with tourism following behind.
The branches of many international banks can be found in Gibraltar, for the regulated jurisdiction has a most favorable corporate tax regime. The offshore and onshore financial sector, specifically the banking sector is extremely well established in Gibraltar. Many wealthy and affluent clients selectively choose Gibraltar to provide their offshore banking due to the favorable tax properties, the absence of foreign exchange controls, the stable political and economic systems, and to add to that, the professional reputation gained by financial sector work force and the exemplary administration of the financial and business policies in Gibraltar.
Gibraltar is a member state of the EU, and the EU Savings Tax Directive is in effect. This means that for all individual EU citizens who hold a Gibraltar bank account, there is an exchange of personal account information between authorities of account holder’s resident country and the Gibraltar authorities. This information is limited to the payment of interest and other returns on savings, and does not apply to offshore Companies, and or other personal information.
The banking sector in Gibraltar tends to focus its activities on asset and wealth management of high net worth individuals (HNWI). It does so through its attractive tax schedule for individuals seeking residence status in Gibraltar.
Offshore banking activity in Gibraltar is regulated by its Financial Services Commissions. Supporting legislation with a robust regulatory environment endorses and ensures the Gibraltar banking sector a sound and stoic banking and financial center, one in which reputations where by illegal and criminal banking activities are not entertained.
The identity of Gibraltar bank account holders is confidential and can be disclosed only under a court order. Gibraltar bank accounts are held in high regard internationally and for this and other reasons offshore banking in Gibraltar continues to grow. In addition to the confidentiality of accounts, another factor which draws individuals of high wealth to bank account in Gibraltar is the special interest rates that are offered to wealthy private depositors through private banking services.
Gibraltar offshore banking is dominated by branches of major European, UK and US Banks. In order for an individual or company to open any type of offshore bank account, one must produce document or documents confirming identity, such as passport or ID card, document confirming address, utility or other bill, banks or credit card statements, or other legal business correspondence with resident address noted. This is all part of the KYC rules in effect in an effort to filter our terrorism or illegal activities revenue from making its way into the banks in Gibraltar. If the account is being opened in absence or via courier, then a second set of address confirmation must be provided. It is highly recommended that a client carefully choose a bank where the client’s needs will be met, important to know the product and services, and costs. It has been found, the account application process will be more efficiently conducted if the services of professional intermediaries is used, so that the right banks offering the desired service is selected.
Most Gibraltar banks offer basic banking services, while other offer more private and advance services such as online stock market orders, online payments, investment portfolios, those banks offering private banking are more customized but generally require higher deposit values. Investment management, wealth planning, e-banking, and other specialized services and banks services are offered. Several banks have complimentary non- English speaking services and therefore a plus for those who do not speak English. Offshore bank accounts in Gibraltar are exempt from all taxes- capital gains, wealth, or income or sales tax; provided the deposits originate elsewhere, and that the account holder is not a resident of Gibraltar. However, for all EU members, EU Savings Tax Directive will apply as noted early on in this article.