The economy of Gibraltar consists largely of the services sector. While being part of the European Union, the British overseas territory of Gibraltar has a separate legal jurisdiction from the United Kingdom and enjoys a different tax system. The role of the UK Ministry of Defence, which at one time was Gibraltar's main source of income, has declined, with today's economy mainly based on shipping, tourism, financial services, and the Internet (mostly gambling).
In his June 2009, budget speech, Chief Minister Peter Caruana noted that Gibraltar's economy remains in good shape and Government finances remain healthy, solid, stable and robust, despite global economic and financial turmoil.
the Court finds that the competent Gibraltar authorities which have devised the tax reform have, from a constitutional point of view, a political and administrative status separate from that of the central government of the United Kingdom.
This allowed the implementation of a new low tax system which is took full effect by 2010.
|Economy of Gibraltar|
|1 July - 30 June|
|EU, OECD and WTO|
|GDP||$2.288 billion (2015) |
GDP per capita
GDP by sector
|agriculture 0%, industry 0%, services 100% (2008 est.)|
Population below poverty line
|12,690 (including non-Gibraltar laborers) (2001)|
Labour force by occupation
|agriculture - negligible, industry 40%, services 60% (2001)|
|Unemployment||3% (2005 est.)|
|tourism, banking and finance, ship repairing tobacco|
|Exports||$271 million (2004 est.)|
|(principally reexports) petroleum 51%, manufactured goods 41%, other 8%|
Main export partners
|Imports||$2.967 billion (2004 est.)|
|fuels, manufactured goods, foodstuffs|
Main import partners
Gross external debt
|7.5% of GDP (2008 est.)|
|Revenues||$475.8 million (2008 est.)|
|Expenses||$452.3 million (2008 est.)|
Gibraltar is a constituent part of the European Union as a Special Member State territory, having joined the European Economic Community with the United Kingdom in 1973, under the provisions of the Treaty of Rome relating to European dependent territories. However, it is exempt from the Common external tariff, the Common Agricultural Policy and the requirement to levy Value added tax.
Subject to notifying the Commissioner, who must be satisfied that they meet certain criteria in accordance with the relevant EU Directive, Gibraltar-licensed or -authorised financial institutions can provide services throughout the EU and European Economic Area without having to seek separate licences or authorisation in the host Member State. This is known as the passporting of financial services.
Referred to as an International Finance Centre, Gibraltar was among 35 jurisdictions identified by the Organisation for Economic Co-operation and Development (OECD) as a tax haven in June 2000. However, the list's disclaimer states:
That list should be seen in its historical context and as an evaluation by OECD member countries at a particular point in time of which countries met the criteria set out in the 1998 Report, Harmful Tax Competition: An Emerging Global Issue. More than five years have passed since the publication of the OECD list contained in the 2000 Report and positive changes have occurred in individual countries’ transparency and exchange of information laws and practices since that time. The list has not been updated to reflect such changes.
As a result of having made a commitment in accordance with the OECD's 2001 Progress Report on the OECD's Project on Harmful Tax Practices, Gibraltar is not included in the OECD's list of uncooperative tax havens. It has also never been listed on the FATF Blacklist of uncooperative countries in the fight against money laundering. It may also be referred to as an offshore financial centre, by international institutions such as the International Monetary Fund (IMF).
However, in its April 2009 progress report, the OECD listed Gibraltar in the list of jurisdictions which, although committed, had not "substantially implemented" yet the internationally agreed tax standard. Following Gibraltar's signing of 12 additional Tax Information Exchange Agreements (TIEAs), as of October 2009, with jurisdictions including the UK, US and Germany, to sum 13, Gibraltar is currently listed in the OECD "white list", and is considered a jurisdiction that has substantially implemented the tax standard. It therefore shares the same status as OECD member states such as the UK, the US, Spain or Germany.
Fiscal advantages, including no tax on capital income, are offered to a maximum of 8,464 offshore qualified companies incorporated in Gibraltar. After an agreement with the European Union in 2005, this tax exempt regime is due to disappear on 31 December 2010.
Gibraltar has a well-regulated financial sector. The Gibraltar authorities are concerned with protecting the reputation and integrity of Gibraltar as a financial center, and are cognizant of the importance of adopting and applying international regulatory standards and best supervisory practices. Gibraltar has a good reputation internationally for cooperation and information sharing.
In 2008 Gibraltar was listed for the first time in the Global Financial Centres Index published by the City of London Corporation. The Rock was ranked 26th in a list of 69 leading finance centres around the world based on an online survey of 1,236 business professionals, who provided a total of 18,878 assessments. In the most recent GFCI report of 2011, Gibraltar was ranked 63rd in the world, and 8th of the leading offshore financial centres (OFCs).
Gibraltar offers a favourable tax system, good internet connectivity along with a well-developed regulatory system. All gambling operations in Gibraltar require licensing under the Gambling Act 2005. The Gibraltar Regulatory Authority is the Gambling Commissioner under the Gambling Act 2005, and therefore the regulatory body. Good regulation, and being part of the EU is seen as a strong advantange by large legitimate operators. The UK has published plans to protect online gamblers from crime and exploitation by banning gambling adverts from poorly regulated countries which specifically mention Gibraltar as an approved location.
The UK's Ministry of Defence was originally the mainstay of Gibraltar's economy but this has greatly reduced to around 6% of the GDP. In 2006 the MoD announced that it would contractorise the provision of services to the military base to make further cost savings. This was finalised in January 2007.
Self-sufficient Gibraltar benefits from an extensive shipping trade, offshore banking, and its position as an international conference center. The British military presence has been sharply reduced and now contributes about 7% to the local economy, compared with 60% in 1984. The financial sector, tourism (almost 5 million visitors in 1998), shipping services fees, and duties on consumer goods also generate revenue. The financial sector, the shipping sector, and tourism each contribute 25%-30% of GDP. Telecommunications accounts for another 10%. In recent years, Gibraltar has seen major structural change from a public to a private sector economy, but changes in government spending still have a major impact on the level of employment.
Figures from the CIA World Factbook show the main export markets in 2006 were United Kingdom 30.8%, Spain 22.7%, Germany 13.7%, Turkmenistan 10.4%, Switzerland 8.3%, Italy 6.7% while the corresponding figures for imports are Spain 23.4%, Russia 12.3%, Italy 12%, UK 9%, France 8.9%, Netherlands 6.8% and United States 4.7%.
The Gibraltar Government state that economy grew in 2004/2005 by 7% to a GDP of £599,180,000. Based on statistics in the 2006 surveys, the Government statisticians estimate it has grown by 8.5% in 2005/6 and by 10.8% in 2006/7 and that the GDP is probably now around 730 million. Inflation was running at 2.6% in 2006 and predicted to be 2% to 3% in 2007. Speaking at the 2007 budget session, Peter Caruana, the Chief Minister said "The scale of Gibraltar's economic success makes it one of the most affluent communities in the entire world."
Labour force: 12,690 (including non-Gibraltar labourers) (2001)
Labour force - by occupation: services 60%, industry 40%, agriculture NEGL% Unemployment rate 2% (2001)
Budget revenues: $455.1 million expenditures: $423.6 million (2005 est.)
Public debt 15.7% of GDP (2005 est.)
Industrial production growth rate NA%
Electricity - production 142 million kWh (2006 est.)
Electricity - production by source
fossil fuel 100%
Electricity - consumption 142 million kWh (2006 est.)
Electricity - exports 0 kWh (1998)
Electricity - imports 0 kWh (1998)
Oil - production 0 barrels per day (0 m3/d) (2001 est.)
Oil - consumption 42,000 barrels per day (6,700 m3/d) 2001
Oil - exports NA (2001)
Oil - imports NA (2001)
Agriculture - products none
Exports $271 million (2004 est.)
Exports - commodities (principally reexports) petroleum 51%, manufactured goods 41%, other 8%
Imports $2.967 billion (2004 est.)
Imports - commodities Fuels, manufactured goods, and foodstuffs
Imports - partners UK, Spain, Japan, Netherlands
Fiscal year 1 July - 30 June
The above figures taken from the CIA World Factbook September 2009 edition.
In September 2009 the Gibraltar Chamber of Commerce released an Economic impact study and analysis of the economies of Gibraltar and the Campo de Gibraltar produced by Professor John Fletcher of Bournemouth University. The report aimed at clarifying the effects of Gibraltar's economy on the Campo area. It demonstrated that Gibraltar's economy has a significant and very positive economic impact on the Campo de Gibraltar. It also noted that the Campo region played a "significant role [..] in Gibraltar's economic development as well", concluding that "[b]oth economies and societies would be the poorer without the other..."
Its conclusions were:
- The Gibraltar economy has a significant and positive economic impact on the Campo de Gibraltar region when considered from the point of view of net recurrent expenditure.
- In 2007 Gibraltar businesses imported more than £174m of goods and services from Spain (excluding petroleum imports).
- Spanish frontier workers earned almost 243m in 2007 and this money was repatriated and spent in the Campo de Gibraltar region to generate further rounds of economic activity.
- Other frontier workers (excluding Spanish and Gibraltarian) earned £82.8m from within the economy of Gibraltar.
- The number of jobs supported by the Gibraltar economy (within Gibraltar) is equivalent to 18% of the total 102,468 jobs recorded in the Campo de Gibraltar region in 2007.
- Residents of Gibraltar spent almost £30m on shopping, food and other goods and services, in Spain, during 2007.
- Gibraltarians with second homes in the Campo de Gibraltar spent more than £33.5m in the Spanish economy during 2007.
- Gibraltar's economy increased the level of output in the Campo de Gibraltar in 2007 by £301.745m. Total visitor spending in Gibraltar in 2007 was £230.6m of which £176m was by visitors across the land frontier. Of this £176m land frontier visitor expenditure, some £112.4m was attributable to Campo de Gibraltar residents and a further £21.27m is assumed to be displacement from the Spanish economy, leaving a total net direct output effect of £168m from recurrent spending (£302m-£134m).
- In 2007 the £302m direct output effect of the Gibraltar economy on the Campo de Gibraltar economy was responsible for a direct increase in gross domestic product (GDP) within the Campo de Gibraltar region of £195m.
- Using the Andalusia Regional Input-Output model to estimate the secondary effects of the two economies' interaction, the Gibraltar economy was responsible for a further increase in GDP in the Campo de Gibraltar region of £125m, resulting in a total increase in GDP of just over £420m.
- The Gibraltar economy was responsible for approximately 12.2% of the total GDP in the Campo de Gibraltar in 2007.
- In terms of a further wealth effect created by the Gibraltar economy, the evidence would seem to suggest that property values within the Campo de Gibraltar region have increased by up to 40% because of the proximity to Gibraltar. With just over 86,000 households in the region and using a conservative property value (at 2007 prices) this could account for an increase in Campo de Gibraltar asset values of somewhere between £1.4 to £5.4 billion. The reason for such large variation is explained partly through the lack of data that are available without undertaking a detailed survey and partly because of the volatility experienced by the Spanish housing market over the past year, where property prices, particularly in some areas, have fallen dramatically. In part this fall in property prices is explained by the general economic downturn being experienced by the global economy and in part by the effect of the falling pound sterling with respect to the value of the euro which will have put further downward pressure on property prices in the region.
- Gibraltar also imported approximately 1.5m tonnes of petroleum products from the Campo de Gibraltar region for bunkering during 2007 and the value of this has not been included in the analyses. If the value of this fuel is included as an import from the Campo de Gibraltar it adds almost another £300m to the impact of Gibraltar on the region, [using Meyrick and Associates of fuel bunker prices for this period and a GBP to USD exchange rate of 0.5049 being the mid-point in 2007].
The average annual earnings of Indo-Gibraltarians is nearly twice that of the rest of Gibraltarian people and approximately 1.5 times that of immigrants in the UK, thus making people of Indian descent by far the most economically affluent ethnic group in Gibraltar.
|url=value (help). The World Factbook. Retrieved 20 December 2007.
Emigration from Malta was an important demographic phenomenon throughout the nineteenth and twentieth centuries, leading to the creation of large Maltese communities in English-speaking countries abroad.Financial services in Gibraltar
Financial services in Gibraltar refers to the services provided in the British Overseas Territory of Gibraltar by the finance industry: banks, investment banks, insurance companies, credit card companies, consumer finance companies, government-sponsored enterprises, and stock brokerages.Gibraltar Betting and Gaming Association
Gibraltar Betting and Gaming Association is a trade association representing online gambling businesses with remote gambling licences issued in Gibraltar.Gibraltar Cruise Terminal
The Gibraltar Cruise Terminal is located at the northern end of the Western Arm of the North Mole at Gibraltar Harbour. Construction of the facility in the British Overseas Territory of Gibraltar was completed in 1997. In the fifteen years since its opening, the terminal handled approximately three million cruise passengers. In May 2011, the explosion of a sullage tank on the Western Arm, while a cruise ship was berthed nearby, ultimately resulted in the loss of life of a dock worker. In October 2011, the Government of Gibraltar announced plans for expansion and renovation of the cruise terminal.Gibraltar International Bank
The Gibraltar International Bank (GIB) is the national bank of Gibraltar. It was established in 2015 and is wholly owned by the Government of Gibraltar Bank Of Gibraltar.Gibraltar Port Authority
The Gibraltar Port Authority develops and manages the Port of Gibraltar.Gibraltar Stock Exchange
The Gibraltar Stock Exchange (GSX) is a stock exchange based in Gibraltar. It was established in 2014, and began full operations in the first quarter of 2015. The stock exchange is the first fully licensed exchange in Gibraltar. The opening occurred in two distinctive phases. In the initial “soft launch” phase from the start of November 2014, the GSX invited firms to apply for membership as Listing Members, with a number of applicants having expressed their keen interest. The full opening for listings themselves occurred during the first quarter of 2015.Gibraltar pound
The Gibraltar pound (currency sign: £; banking code: GIP) is the currency of Gibraltar. It is pegged to – and exchangeable with – the British pound sterling at par value. Coins and banknotes of the Gibraltar pound are minted or printed by the Government of Gibraltar.Gibraltar real
The real was the official currency of Gibraltar until 1825 and continued to circulate alongside other Spanish and British currencies until 1898.Gibraltarians
The Gibraltarians (colloquially Llanitos) are a cultural group native to Gibraltar, a British overseas territory located near the southernmost tip of the Iberian Peninsula at the entrance to the Mediterranean Sea.History of the Maltese in Gibraltar
A Maltese community has existed in Gibraltar since shortly after its capture by an Anglo-Dutch fleet in 1704. Gibraltar, Malta and Cyprus were the three stepping stones whereby Great Britain controlled the Mediterranean and the vital route to the Suez Canal and thence to India. Following the capture of Gibraltar, most of the existing population elected to leave, leaving behind a small population of around seventy (mainly neutral Genoese people). Immigration from neighboring Spanish towns soon followed, giving Gibraltar a very cosmopolitan population. Years of coexistence and intermarriage on the Rock soon led to a coalescence of Maltese, Italian and Andalusian culture, preserving the Mediterranean and Catholic uniqueness of Gibraltar despite the centuries of British rule.List of banks in Gibraltar
The following is a list of licensed banks currently trading in the British overseas territory of Gibraltar:
Bank Jacob Safra (Gibraltar)
EFG Bank (Gibraltar)
Gibraltar International Bank
Gibraltar Savings Bank
Jyske Bank (Gibraltar) Limited
IDT Financial Services Limited
Leeds Building Society
Lloyds TSB International
Lombard Odier Darier Hentsch Private Bank Limited
NatWest Offshore Limited
SG Hambros Bank (Gibraltar) Limited
Turicum Private Bank LimitedOutline of Gibraltar
The following outline is provided as an overview of and topical guide to Gibraltar:
Gibraltar – British Overseas Territory located near the southernmost tip of the Iberian Peninsula of Southeastern Europe overlooking the Strait of Gibraltar between the Mediterranean Sea and the North Atlantic Ocean. The territory shares a border with Spain to the north. Gibraltar was ceded by Spain to Great Britain in perpetuity in 1713 under the Treaty of Utrecht though Spain requests its return. The Government of the United Kingdom has stated it is committed to respecting the wishes of the Gibraltarians, who strongly oppose the idea of annexation along with any proposal for shared sovereignty with Spain.Political development in modern Gibraltar
Gibraltar is a British Overseas Territory located on the southern end of the Iberian Peninsula at the entrance of the Mediterranean Sea. During the early days of the British administration, Gibraltar was maintained primarily as a military outpost with limited attention paid to its role as a trading post. Initially long term settlement of Gibraltar was uncertain but as Spain's power waned it became established as an important base for the British Royal Navy. Throughout the 19th century there was conflict between the competing roles of military and trading posts, leading to tensions between the civilian population and the Governor of the day. Some Governors encouraged the development of the civilian role in government, whilst others regarded it as a nuisance. As a result, compared with other former British colonies, civilian Government in Gibraltar emerged largely in the 20th century as the needs of the civilian population were often considered by Governors as subordinate to the needs of the military. Since World War II, Gibraltarians have increasingly asserted their own individual identity. The Rock's relationship with Spain and the sovereignty dispute continues to affect the Politics of Gibraltar to this day.Port of Gibraltar
The Port of Gibraltar, also known as Gibraltar Harbour, is a seaport in the British Overseas Territory of Gibraltar. It was a strategically important location during the Napoleonic Wars and after 1869 served as a supply point for ships travelling to India through the Suez Canal. The harbour of Gibraltar was transformed in the nineteenth century as part of the British Government's policy of enabling the Royal Navy to defeat its next two largest rival navies combined. Both Gibraltar and Malta were to be made torpedo proof, and as a result the North and South Mole were extended and the Detached Mole was constructed. Three large dry docks were constructed and plans were available by 1894. Over 2,000 men were required and had to be billeted in old ships which had not been required since convict labour was abandoned. The demand for stone and sand necessitated building the Admiralty Tunnel right through the Rock of Gibraltar.In 1903 Edward VII arrived to name the new No. 3 Dock of the new Gibraltar Harbour after himself. Queen Alexandra arrived in HMY Victoria and Albert in 1906 and the Prince and Princess of Wales the following year to name dock number two and then one after themselves.Since 2009 the docks have been known as Gibdock.Revenue stamps of Gibraltar
The British colony of Gibraltar issued revenue stamps from 1884 to 1976.Sacarello's
P. Sacarello Limited, more commonly known as Sacarello's, is a coffee roasting family business and coffee shop/restaurant in the British Overseas Territory of Gibraltar. Originally Italian, the Sacarello family first established itself in Gibraltar in the late 19th century and, despite economic upheavals, has served the Rock for over 125 years. The Sacarellos have owned a merchant house at 57 Irish Town, on the corner of Tuckey's Lane, since 1906 which now houses their coffee shop.Taxation in Gibraltar
Gibraltar benefits from an extensive shipping trade, offshore banking, and its position as an international conference center. It is a well known and regulated international finance centre and has been a popular jurisdiction for European offshore companies. The financial sector, tourism, shipping services fees, and duties on consumer goods generate revenue.The law of Gibraltar is based on English law, but is separate from the UK legal system. Non-resident businesses do not pay income tax unless the source of this income is Gibraltar proper. There is no tax on capital income.In Gibraltar there is no capital gains tax, wealth tax, sales tax or value added tax. Import duty is payable on most items at 12% The main tax for companies is Corporation Tax, and Social insurance contributions. There are also stamp duties on certain transactions, and property taxes ('rates').
Non-resident companies can take advantage of a number of offshore regimes in order to reduce taxation, although in line with the elimination of unfair tax practices this is being phased out. Individuals pay quite high taxes on their income in Gibraltar unless they are able to take advantage of high-net-worth individual status or gain exemption as an expatriate executive. Import duties are quite high on some items.
Assessment and collection of tax is administered by the Commissioner of Income Tax; the tax year runs from 1st July to the following 30 June.
The information in this article is taken from the publication "Gibraltar Tax facts". It may be incorrect or out of date. For the latest data see the Government of Gibraltar website listed in external links.World Trade Center Gibraltar
World Trade Center Gibraltar is a World Trade Centers Association (WTCA) office complex located in Gibraltar. The WTCA approved the establishment of the WTC Gibraltar at the conclusion of its Annual General Assembly in Beijing, China, in October 2010.
The 253,600 square feet (23,560 m2), seven-storey WTC Gibraltar building was officially opened on 15 February 2017 by Fabian Picardo, Chief Minister of Gibraltar, and Dr Joseph Garcia, Deputy Chief Minister with a 97% occupancy / reservation rate. Constructed adjacent to Ocean Village, a mixed use marina complex, it includes a Regus Business Centre, state-of-the-art telecommunications, high speed lifts, climate control, electronic security access, CCTV, parking, two food and beverage outlets, a creche, and a print services operation.