Gibraltar is one of the largest bunkering ports in the Mediterranean Sea, with 4.3 million tonnes of bunkers delivered in 2021 to over 5,500 ships. This has become the main activity within the Port of Gibraltar. Increased competition from Algeciras in 2022 resulted in a fall to around 3.4m tonnes.[3]
Subject to notifying the EU 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.[7]
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 took full effect in 2010.
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.[10] 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).[12]
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.[13] Following Gibraltar's signing of 12 additional Tax Information Exchange Agreements (TIEAs), as of October 2009, with jurisdictions including the UK, US and Germany,[14] 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.[15]
Fiscal advantages, including no tax on capital income, are offered to a maximum of 8,464 offshore qualified companies incorporated in Gibraltar.[16] After an agreement with the European Union in 2005, this tax exempt regime is due to disappear on 31 December 2010.[16]
A 2007 IMF report on the regulatory environment and anti-money laundering has once again endorsed Gibraltar's robust regulatory environment. [17]
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.[22] In the most recent GFCI report of 2011, Gibraltar was ranked 63rd in the world, and 8th of the leading offshore financial centres (OFCs).[23]
The Tax Justice Network ranked Gibraltar at #43 out of 71 jurisdictions on its 2011 Financial Secrecy Index. Gibraltar's "secrecy score" was 78, equating to Switzerland in that category.[24]
Gibraltar was also ranked in the top 20 centres for e-readiness, coming 20th after major capitals and leading offshore centres.[25]
The territory also has a small manufacturing sector, with one company (Bassadone Automotive Group) supplying ambulances and other project vehicles converted locally from SUV vehicles to the United Nations and other agencies, employing some 320 staff across its range of activities.[26]
This section needs expansion. You can help by adding to it. (October 2018)
Internet business
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.[27] Good [citation needed] regulation, and being part of the EU is seen as a strong advantage by large legitimate operators.[citation needed] The UK has published plans to protect online gamblers from crime and exploitation by banning gambling adverts from poorly regulated countries[28] which specifically mention Gibraltar as an approved location.
Defence spending
The UK's Ministry of Defence was originally the mainstay of Gibraltar's economy but this has greatly reduced to around 6% of the gross domestic product. In 2006 the Ministry of Defence announced that the provision of services to the military base would be contracted to make further cost savings. This was finalised in January 2007.[29]
Economy in detail
Gibraltar benefits from an extensive shipping trade, a well regulated international finance center, tourism, and has become a global leader in the virtual gaming industry.[30][31]
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.
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.)
The above figures taken from the CIA World Factbook September 2009 edition.[33]
Interaction with the nearby area
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.[34] 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..."[35]
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].
In 2019, the International Agreement on Taxation and Protection of Financial Interests between Spain and the United Kingdom on Gibraltar was signed by all three countries. This agreement covers such issues as tax co-operation between the authorities in Gibraltar and Spain, the criteria for tax residence of individuals and companies and procedures for administrative cooperation.[37]
% in higher managerial and professional occupations
1
Indian
20.3%
2
UK British
12.6%
3
Other EU
11.8%
4
All other nationals
9.5%
5
National average
9.0%
6
Gibraltarian
8.4%
7
Spanish
5.9%
8
Moroccan
4.4%
Related Research Articles
The economy of the Bahamas is dependent upon tourism and offshore banking. The Bahamas is the richest country in the West Indies and is ranked 14th in North America for nominal GDP. It is a stable, developing nation in the Lucayan Archipelago, with a population of 391,232 (2016). Steady growth in tourism receipts and a boom in construction of new hotels, resorts, and residences had led to solid GDP growth for many years. The slowdown in the Economy of the United States and the September 11 attacks held back growth in these sectors from 2001 to 2003.
The economy of the Cayman Islands, a British overseas territory located in the western Caribbean Sea, is mainly fueled by the tourism sector and by the financial services sector, together representing 50–60 percent of the country's gross domestic product (GDP). The Cayman Islands Investment Bureau, a government agency, has been established with the mandate of promoting investment and economic development in the territory. Because of the territory’s strong economy and it being a popular banking destination for wealthy individuals and businesses, it is often dubbed the ‘financial capital’ of the Caribbean.
The economy of Chile is a market economy and high-income economy as ranked by the World Bank. The country is considered one of South America's most prosperous nations, leading the region in competitiveness, income per capita, globalization, economic freedom, and low perception of corruption. Although Chile has high economic inequality, as measured by the Gini index, it is close to the regional mean.
The economy of Costa Rica has been very stable for some years now, with continuing growth in the GDP and moderate inflation, though with a high unemployment rate: 11.49% in 2019. Costa Rica's economy emerged from recession in 1997 and has shown strong aggregate growth since then. The estimated GDP for 2023 is US$78 billion, up significantly from the US$52.6 billion in 2015 while the estimated 2023 per capita is US$26,422.
The economy of Greece is the 53rd largest in the world, with a nominal gross domestic product (GDP) of $242.385 billion per annum. In terms of purchasing power parity, Greece is the world's 54th largest economy, at $416.969 billion per annum. As of 2022, Greece is the sixteenth-largest economy in the European Union. According to the International Monetary Fund's figures for 2023, Greece's GDP per capita is $23,173 at nominal value and $39,864 at purchasing power parity.
The economy of Monaco is reliant on tourism and banking. Monaco, situated on the French coast of the Mediterranean Sea, is a popular resort, attracting tourists to its casino and pleasant climate.
The economy of Nauru is tiny, based on a population in 2019 of only 11,550 people. The economy has historically been based on phosphate mining. With primary phosphate reserves exhausted by the end of the 2010s, Nauru has sought to diversify its sources of income. In 2020, Nauru's main sources of income were the sale of fishing rights in Nauru's territorial waters, and revenue from the Regional Processing Centre.
The economy of the Republic of the Congo is a mixture of subsistence hunting and agriculture, an industrial sector based largely on petroleum extraction and support services. Government spending is characterized by budget problems and overstaffing. Petroleum has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Nowadays the Republic of the Congo is increasingly converting natural gas to electricity rather than burning it, greatly improving energy prospects.
The economy of Spain is a highly developed social market economy. It’s the world's 15th largest by nominal GDP and the sixth-largest in Europe. Spain is a member of the European Union and the eurozone, as well as the Organization for Economic Co-operation and Development and the World Trade Organization. In 2021, Spain was the twentieth-largest exporter in the world and the sixteenth-largest importer. Spain is listed 27th in the United Nations Human Development Index and 37th in GDP per capita by the World Bank. Some of the main areas of economic activity are the automotive industry, medical technology, chemicals, shipbuilding, tourism and the textile industry.
The economy of Dominica is reliant upon agriculture, particularly bananas, with the financial services industry and passport sales becoming increasingly the island's largest source of income. Banana production employs, directly or indirectly, upwards of one-third of the work force. This sector is highly vulnerable to weather conditions and to external events affecting commodity prices. The value of banana exports fell to less than 25% of merchandise trade earnings in 1998 compared to about 44% in 1994.
A developed country, or high-income country, is a sovereign state that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are the gross domestic product (GDP), gross national product (GNP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living. Which criteria are to be used and which countries can be classified as being developed are subjects of debate. Different definitions of developed countries are provided by the International Monetary Fund and the World Bank; moreover, HDI ranking is used to reflect the composite index of life expectancy, education, and income per capita. Another commonly used measure of a developed country is the threshold of GDP (PPP) per capita of at least US$22,000. In 2023, 40 countries fit all four criteria, while an additional 15 countries fit three out of four.
The world economy or global economy is the economy of all humans in the world, referring to the global economic system, which includes all economic activities conducted both within and between nations, including production, consumption, economic management, work in general, exchange of financial values and trade of goods and services. In some contexts, the two terms are distinct: the "international" or "global economy" is measured separately and distinguished from national economies, while the "world economy" is simply an aggregate of the separate countries' measurements. Beyond the minimum standard concerning value in production, use and exchange, the definitions, representations, models and valuations of the world economy vary widely. It is inseparable from the geography and ecology of planet Earth.
Gibraltar, a British Overseas Territory, located at the southern tip of the Iberian Peninsula, is the subject of a territorial claim by Spain. It was captured in 1704 during the War of the Spanish Succession (1701–1714). The Spanish Crown formally ceded the territory in perpetuity to the British Crown in 1713, under Article X of the Treaty of Utrecht. Spain later attempted to recapture the territory during the thirteenth siege (1727) and the Great Siege (1779–1783). British sovereignty over Gibraltar was confirmed in later treaties signed in Seville (1729) and the Treaty of Paris (1783).
Gibraltar is a British Overseas Territory and city located at the southern tip of the Iberian Peninsula. It has an area of 6.7 km2 (2.6 sq mi) and is bordered to the north by Spain. The landscape is dominated by the Rock of Gibraltar, at the foot of which is a densely populated town area, home to some 32,688 people, primarily Gibraltarians.
A tax haven is a term, sometimes used negatively and for political reasons, to describe a place with very low tax rates for non-domiciled investors, even if the official rates may be higher.
The economy of the Republic of Ireland is a highly developed knowledge economy, focused on services in high-tech, life sciences, financial services and agribusiness, including agrifood. Ireland is an open economy, and ranks first for high-value foreign direct investment (FDI) flows. In the global GDP per capita tables, Ireland ranks 2nd of 192 in the IMF table and 4th of 187 in the World Bank ranking.
An offshore financial centre (OFC) is defined as a "country or jurisdiction that provides financial services to nonresidents on a scale that is incommensurate with the size and the financing of its domestic economy."
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.
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 Stock exchange". Archived from the original on 2 April 2015. Retrieved 9 June 2015.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
£2.344 billion (2018)
2.6% (2006)
7.5% of GDP (2008 est.)
