Annabel Grossman
GIBRALTAR is trying to lure hedge funds from their London offices with promises of low taxes on the British overseas territory.
Fabian Picardo, chief minister of Gibraltar, urged fund managers to consider that it is much cheaper to do business on the Rock
He invited hedge fund managers to the territory where they were told income tax could be limited to £30,000 a year no matter how many millions they earned.
The promotional material handed out to the multi-millionaire fund managers stated that they are ‘unlikely to be liable for corporation tax’
It went on to say that income tax bill could be reduced even further if the manager was granted ‘special tax status’ as a ‘high executive possessing special skills’.
The Rock offers additional financial incentives including no VAT and social security payments of just £120 per family a month. This is compared to the UK where the top rate of income tax is 45% and VAT stands at 20%.
Picardo has previously denied allegations that Gibraltar is a tax haven and insists the peninsula complies with all European Union tax and transparency regulations.
He told the Guardian that the promotional campaign was going well with ‘a number of people that used to operate out of Mayfair now in Gibraltar’.
“This is a process that is going to continue. Gibraltar presents a serious advantage in the interest of shareholders,” he added. “At the end of the day it is in the interest of shareholders that hedge funds maximise revenue.”
would you swap The City for Gib….?? sad but hardly a career move… maybe for those close to retirement….
You are so right ad – swap the cold and damp and rush rush rush of the smoke for the sun and slower and better life style of Gibraltar and the Costa. They would be mad! Or an idiot like you?
They would earn more money and as a cv enhancer not being in one place all the time is a good thing not a bad thing.
The world does not revolve around London although 5m of the 60m would like you to believe that and despite the odds stacked against other areas in the UK they do alright ta muchly. Apples and pears wtf!
It was a fair enough comment Ian. Gibraltar is hardly a restful place. Isn’t it mainly business people running around, congestion, traffic jams, people buying cheap spirits and tobacco, and tourists wanting lifts up to the top of the rock?
I won’t stoop to calling you an idiot though.
I would guess that Gib is just trying to replace the online gambling industry if it returns to the UK after the UK offer ‘incentives’ – good thinking, swap one form of gambling for another!
Yes Josh that’s just what it is der. Typical comment from someone who doesn’t visit it but listens to day-trippers or reads Spanish propoganda.You’ll be calling it a tax haven and asking why Britain would want such a colony.
Working in Gibraltar is a combination of the laid back attitude of the Med combined with the get-up-and-go British attitude. Hedge funds would relocate not only for Gibraltar but for its’ proximity to Morocco and Southern Spain.
There are many ancillary businesses already in Gibraltar so why wouldn’t they want to escape London/Brighton for Gibraltar/Marbella?
Have to say that I have been visiting Gib since the border opened (and I made a good profit on property in Guacin, bought for ‘nada’ when the border was closed) and always hated the place, drove me crazy if I was there for more than 4 hours.
However I was there earlier this year and very impressed by the changes and improvements made since gambling replaced the military as a source of revenue.
I could now think of living there, except for the nonsense that takes place at the border each day.
I don’t think they will actually live and work on Gib. Merely register the Funds there to take advantage of the tax-haven status, in one of those offices with a secretary ‘managing’ several hundred limited companies, and carry on working out of Canary Wharf.
John – It actually isn’t that bad the border unless you are doing it every day. And even then often it is numbers rather than the Guardia playing silly buggers. As you say things have changed a lot and there is more to do. However apart from weekends the place is pretty dead in the evenings.
Apartment prices are still much higher than they should be but combining Gib living and a costa property is ideal. You’d then decide on the quieter times to go out. Don’t forget you guys up the coast only see articles about how bad things are when they are really bad. Mostly they are bearable especially if you take something to do/read in the car with you. Not time wasted if you can catch up on that book or newspaper.
Know what you mean about being stir crazy in the old days. Mind you I had kids so being in a safe environment with beaches was great.
That was just my opinion Ian when I visited. The approach was nice, like entering a 3rd world squat. Was really glad to leave.
actually gib is still a colony under the UN status – overseas territory if you must. there are pros and cons like everything 5 hours stuck in a queue last summer is not fun and a couple of books worth of reading in the sweltering heat. The refinary pumping gases over to gib every day is neither fun or healthy – why does gib have such a large cancer ward, specialists and connections with the uk? – but each to their own. I do hate jingoists who attack people for having a different opinion and attack their neighbours regardless – that is called fascism, racism amongst other words. i feel the situation with spain and gib would improve the moment these types of people woke up and realised that. As for swapping mayfair for gib – well it is actually illegal and against the eu and g8 legislations to encourage tax avoidance regardless of how you package it. It just desperation on behalf of certain members of the gib govt as they know most of the gaming industry will leave for the UK once the UK gaming law is passed – hey ho at least you’ll be happy and thats the main thing.
Vladimir,
Gib is not a colony, its a British Overseas Territory and has been since 1996. The UN is in the process of updating its list but is taking more time than usual due to the incessant bitching and moaning from our friendly neighbours.
The queues are dreadful, thanks Spain for that too!
The levels of cancer have been studied by various international scientific/research analysts (funded by Gibraltar Government obviously) and have concluded as `average` but I do think it is rather high in Gib. Thanks to the disgusting, unregulated and stoneage Refinery in the nearby Spanish town of Puente de Mayorga. Thanks for that one too Spain.
We have been trying to have good neighbourly relations for decades! yet Spain, cant get over its medieval fantasy about conquering Gibraltar, despite being in 2013 and this being utterly impossible under EU,UN and UK guarantee. Spain seem to forget that we employ 25,000+ Spaniards and also indirectly contribute an estimated £250Miliion into nearby Andalucia anually. Spain bites the hand that feeds her.
The UK gambling law will not mean the end of the gambling sector in Gib, it could mean the end of the UK market for companies based there BUT, the gambling industry serves many other countries too. the UK is only a fraction of the total number of countries served.