Gibraltar

Gibraltar is a 3 square mile British Crown Colony located on the southern tip of Spain, and dominating the Straits of Gibraltar where the Mediterranean meets the Atlantic. Although Gibraltar is technically a member of the European Union, it is specifically excluded from the most burdensome requirements, such as the VAT system.

Although Gibraltar is small, it is home to a very sophisticated banking and financial community. The Euro is the currency.

Gibraltar corporations may be set up as tax-exempt; however, a corporation may elect to become a "qualifying company" and pay a minimal 2% tax to the Gibraltar Government. A corporation will do this when the payment of the minimal tax exempts the corporation from having to pay tax in some other country for doing business there (where the other country will tax a corporation if the corporation is not taxed elsewhere).

TAX WARNING FOR U.S. CITIZENS

U.S. citizens are taxed on their taxable income from wherever it is derived, anywhere in the world. U.S. citizens are also taxed on investments indirectly made through foreign trusts and foreign corporations, including offshore trusts and IBCs. Thus, the fact that an offshore jurisdiction may have low or no taxes does not mean that if a U.S. citizen does business there that he or she will enjoy only low or no taxes on the personal income made. There are simply NO personal income tax advantages, at all, for U.S. citizens to use offshore structures, and anyone who tells you differently is probably telling you a falsehood. Any discussion we make of an offshore jurisdiction's tax laws should be construed only according to the foregoing warning.

BEWARE OF OFFSHORE SERVICE PROVIDERS: There are some offshore service providers who will make wild claims about saving you personal income taxes, so as to convince you to set up an offshore structure. Most of these people don't know the first thing about U.S. tax law, and their representations to you will not help you, at all, if you are caught with an unreported trust, corporation, or bank account. All they really want is your money, and even if you commit tax evasion they are not subject to U.S. law, and so couldn't care less. See Hiding Money Offshore