Gibraltar has been a Crown Colony of the United Kingdom since 1713 when the Territory was ceded to Britain under the terms of the treaty of Utrecht. Gibraltar is politically and economically stable and although Spain still maintains a territorial claim over Gibraltar the British Government has undertaken not to place the people of Gibraltar under the sovereignty of another state without their free and democratic consent. This consent is most unlikely to be forthcoming. Britain maintains responsibility for defence and international affairs but local matters, including company and taxation law, are the preserve of a locally elected House of Assembly. Gibraltar enjoys a sophisticated range of banking, legal, accountancy and other professional services.
Communications are excellent.
There are 2 main types of non-tax paying company available in Gibraltar. A company incorporated in Gibraltar which is owned by non-residents of Gibraltar and does not transact business with other Gibraltar resident companies or individuals is eligible to apply for tax exempt status in Gibraltar. At the end of every year the exempt company must file a statement attesting to the fact that the company has complied with the conditions applicable to its exempt certificate. An exempt company is convenient to administer due to the fact that it may have locally appointed directors and may maintain Bank accounts within Gibraltar. Thus the whole of the administration may be located within Gibraltar which helps to prevent the assumption that the company may be tax resident anywhere else.