Investing in Strong and Stable Gibraltar

Gibraltar is an island located on the southern tip of Spain, but it is part of Britain. It isn’t exactly famous for being a popular expat destination, however, it has a long-standing reputation as an international banking hub. Having said that, it’s still an expat destination for some. Expats who reside in Gibraltar are attracted to the lucrative investment opportunities and positions in the financial industry, and some arrive on the “Rock” to spend their retirement in the sun. Plus, because Gibraltar is a British colony, it is particularly popular to British expats. 

However, despite this, Spain still has an influence of the overall culture of Gibraltar, so, this might take some getting used to, but on the flip side, the first language on the island is English, so you won’t necessarily need to bring back your GCSE in Spanish. But there’s no hurt in trying! Healthcare and education is based on Britain’s, meaning that the country’s schools and hospitals are of a high standard. 

Another perk of investing and living in Gibraltar is that it reaps the benefit of having over 300 days of sunshine and the general lifestyle on the island is widely known to be outstanding. Because of the near year-long sunshine, there are plenty of outdoor activities to choose from. Even a trip to the mainland is only a short crossing away. 

Gibraltar’s Economy is Growing!  

According to a report by the OECD, Gibraltar was the region that grew the highest in the last 20 years among all other OECD countries. In the last five years, the island’s GDP has increased by 36% and ranks in the top 20 of GDP growth across the globe. The report also noted that Gibraltar’s economic growth depended on having a pro-business and investment environment, along with advocating solid quality investment instead of quantity. These factors were at the core of the island’s transformation as a business hub. 

So, why Invest in Gib? 

Well, this is why. Gibraltar offers foreign investors one of the lowest corporate tax rates in Europe: 10%. This makes the British territory one of the most desirable countries in the EU. During the financial downturn of 2008, Gibraltar’s economy was one of the only European economies to continue to grow during that period, assuring foreign investors that they’ll reap the reward of a robust and stable local market. Also, the government of Gibraltar continues to look for more investment opportunities for European investors as well as non-European investors. Another reason to invest in Gibraltar, is that it is part of the EU, but with a unique status. The island’s commercial code is rooted by UK company law, but it includes significant EU regulations to provide the most helpful company registration amenities. 

Gibraltar’s access to the European Economic Area (EEA) countries provides a large market for foreign investors who want to set up businesses on the island. Because of its strategic position, Gibraltar offers access to markets in African as well as Europe. Another advantage of investing in Gibraltar is its workforce. Because the country has appealed to many industries over the years, the island is a melting pot of specialists from all over the globe. 

What investment opportunities are there in Gibraltar?  

Gibraltar has become a major financial hub over the last few years, with many investors attracted to the finance industry. The rise in the industry has encouraged the growth in other industries in the countries, such as gaming, tourism and shipping. The property market has also benefitted from growth in recent years. Additionally, the government of Gibraltar has made it easier for foreign investors to setup companies on the island, granting access to incentives such as cutting corporate tax rates for companies in their first year of operation. The government has also recently simplified the company registration process by removing a lot of bureaucracy and red tape. 

Property Investment in Gibraltar 

After the triggering of Article 50 and Theresa May’s snap election, there has been some uncertainty regarding the state of the property market in Gibraltar, however, the overall feeling and reality is, that the property market on the island is robust and stable with no signs of instability on the horizon. Property investment in Gibraltar is humble but lucrative. For domestic property investments, apartments are the most popular on the island, giving foreign investors strong rentals yields of between 6% - 9% and sometimes more. In regards to the cost of living, Numbeo lists that an apartment in the city centre will cost 5,431.00 per square metre, and 3,750.00 per square metre for apartments outside of the city centre.