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+1
Gibraltar
English
39,647 Million
Gibraltar Pound (GIP)
+350
.gi
Israel – Gibraltar Relations
Israel and Gibraltar have not signed a Double Tax Agreement. Both countries share a friendly and cooperative relationship. Gibraltar hosts an Israeli honorary consulate that helps strengthen diplomatic and economic ties between them. In 2016, the Gibraltar-Israel Chamber of Commerce was created to boost trade and investment. In 2022, a joint stamp featuring synagogues from both places highlighted their shared cultural and historical connections. Gibraltar is home to about 800 Jews, one of the largest religious minorities in the territory. The Jewish community, mainly Sephardic, has a rich history on the peninsula and has made significant contributions to Gibraltar’s political and cultural life.
Details about Israel’s embassy in Gibraltar
Currently, Israel does not have a consular or diplomatic mission established in Gibraltar. Instead, The Consular Department at the Embassy of Israel in London has jurisdiction over Gibraltar.
Address: 2 Palace Green, 15 Old Ct Pl London W8, UK
Phone: +44 20-7957-9500
Website: Click Here
Email: info@london.mfa.gov.il
Details about Gibraltar Embassy in Israel
Gibraltar does not maintain a diplomatic mission in Israel. As a British Overseas Territory, Gibraltar’s international diplomatic affairs are managed by the United Kingdom.
Address: British Embassy192 Hayarkon Street 6340502 Tel Aviv Israel
Phone: +972 (0)3 725 1222
Website: Click Here
E-mail: webmaster.telaviv@fcdo.gov.uk
Business Activity in Gibraltar
Gibraltar, with its unique European membership terms, offers a wide range of products and services for local and international investors. It is a modern, low-tax jurisdiction with strong professional infrastructure and European-standard regulations, attracting numerous global businesses and financial services.
Its economy thrives on key sectors such as trade, financial services, e-gaming, tourism, and maritime activities. The Finance Centre, including banks, insurance, legal, and IT services, has established Gibraltar as a top international business hub. Tourism attracts millions annually, while e-gaming and maritime services, like vessel bunkering, are vital contributors.
This strong economic performance supports public spending on health, education, and social services, driven by stable government policies that foster growth and investor confidence.
Applicability of the MLI
Israel has signed the Multilateral Convention, commonly known as the MLI. The MLI is a convention that is meant to fix double taxation treaties according to the BEPS framework.
Israel signed the MLI on the 7th of June 2017, with its provisions entering into force on the 1st of January 2019. On the other side, Gibraltar has not proceeded with the signature of the Convention.
Residency for Tax Purposes in Gibraltar
Residence of an Individual
Individuals are considered residents if they spend 183 days in a single tax year or more than 300 days over three consecutive years.
To read about how an individual is considered a resident of Israel, click here.
Residency of a Company
A company is considered a resident of Gibraltar if its business is managed and controlled in Gibraltar, or if it is managed from outside Gibraltar by people who are usually tax residents in Gibraltar.
To learn about how a company is considered a resident of Israel, click here.
The Tax System in Gibraltar
Gibraltar Tax Authority is called the Income Tax Office.
Income Taxation: 14% -39%
Taxation of Companies and Branches: 12.5% or 20%
VAT: Not Applicable
Capital Gains Tax: Not Applicable
Withholding Tax
Gibraltar Internal Tax Rate | Israel Internal Tax Rate | |
Personal Income tax (Tax brackets) | First 4,000 GIP – 14 %; Next 12,000 GIP – 17%; Above 16,000 GIP – 39%. | Up to 50% |
Corporate income tax | 12.5% or 20% | 23% |
Capital Gains Tax Rate | NA | 25%-30% (with an additional surtax of 3% applied to high earners) |
Branch Tax | 12.5% or 20% | 23% |
Withholding tax (Non-Resident) Dividends | NA | 25% or 30% |
Interest | NA | 15%/25%/23% |
Royalties | NA | 23%-40% |
VAT | NA | 17% |
Relocation to Gibraltar
Gibraltar’s economy is diverse, thriving, and built on its status as a low-tax jurisdiction with excellent professional infrastructure. It adheres to European regulatory standards, attracting international businesses and financial service providers.
Gibraltar is a prominent financial hub, hosting banks, insurance firms, fund managers, and related services like legal and accounting expertise, which contribute significantly to its global reputation. Over 10 million visitors annually boost the economy, drawn by Gibraltar’s unique attractions and business opportunities. The port plays a huge role, particularly in vessel bunkering (refueling ships), making this a key economic driver. Gibraltar is a world-leading jurisdiction in the online gaming market with a strong regulatory regime and a business-friendly culture.
The government dedicates significant resources to public services, such as health, education, and social welfare, which are backed by good economic growth and investor confidence as the result of predictable and pro-business policies. This has positioned Gibraltar as a dynamic and successful European jurisdiction.
After Jews resettled in Gibraltar, they established the island’s oldest synagogue. By 1754, the Jewish community made up one-third of Gibraltar’s civilian population, with 573 members. By the mid-19th century, Jews played an important role in Gibraltar’s economy, dominating much of the island’s retail trade.
Real Estate Taxation in Gibraltar
Property tax rates are charged based on an assessed “net annual value” of a property. Rates are payable quarterly with a 10 % discount for domestic premises, a 15 % discount for general commercial property, and a 30% discount for retail and wholesale, including bars and restaurants, for payment on time.
Regarding the Stamp Duty in Gibraltar, the following apply:
Property Transactions:
Up to £200,000: 0%.
£200,001–£350,000: 2% on the first £250,000, 5.5% on the rest.
Over £350,000: 3% on the first £350,000, 3.5% on the rest.
First/Second-Time Buyers:
No stamp duty on properties under £300,000.
Government Affordable Housing:
No stamp duty on initial purchases.
7.5% applies if sold within 10 years
Transfer of Funds from Israel to Gibraltar
According to section 170(a) of the Israeli Income Tax Ordinance, all payments transferred to non-Israeli residents are subject to a 25% withholding tax. However, this tax can be reduced or even waived if certain conditions are met. Our firm handles withholding tax matters with the Israeli Tax Authority.
In addition to assisting with withholding tax matters, our firm also helps with other issues related to transferring funds abroad. This includes providing an accountant’s approval regarding the payment of taxes, reviewing additional actions required under the CRS standard, and more.
Moreover, banks often raise many difficulties and charge high fees for converting shekels into other currencies. Therefore, consulting with a specialist before transferring the funds is highly recommended, click here to contact us.
For more information on money transfers abroad, click here.
Types of Business Entities in Gibraltar
A sole trader is the simplest and most basic type of business structure, requiring minimal cost and effort to set up. Sole traders can operate under their own name or a registered business name. They retain full control of the business but face unlimited liability for any losses. Tax is paid at personal income tax rates, with business income and expenses declared in annual tax returns. While it may be harder to secure financing, options like loans, personal savings, or tax relief are available. Sole traders in Gibraltar must also comply with licensing obligations to trade legally.
A Partnership is a business structure where two or more individuals share risks, costs, and responsibilities. Each partner is self-employed, shares profits, and is personally liable for debts. Partnerships lack separate legal status, so changes like a partner leaving or dying dissolve the partnership. This structure is simple, flexible, and ideal for joint ownership, but it offers no liability protection if the business fails.
A limited liability partnership (LLP) combines the features of a partnership and limited liability. Partners share risks, costs, and profits but are not liable for each other’s misconduct. Liability is limited to investments and guarantees. LLPs allow partners to directly manage the business and must be registered with Companies House.
A Protected Cell Company (PCC), established under Gibraltar’s Protected Cell Companies Act 2001, allows assets and liabilities to be separated into distinct cells within the same company. This structure benefits finance and insurance businesses by isolating risks across cells. PCCs require GFSC approval, an annual fee of £3,000, plus £1,000 per cell.
A Trust is used for asset protection, property ownership, or estate planning. Gibraltar trusts are tax-free if income is not local and beneficiaries are non-residents, though trustees can reside in Gibraltar. Asset Protection Trusts shield assets from creditor claims but require disclosure and registration with the GFSC and Registrar of Dispositions.
Incentive Laws in Gibraltar
In Gibraltar, various tax incentives are available to individuals and businesses. A Foreign Tax Credit allows taxpayers to offset taxes paid in another country against Gibraltar tax for the same income, up to the lower of the two amounts. Development Aid provides tax and duty relief for new projects that create housing, boost tourism, or generate jobs, provided they meet certain criteria and timelines. For building owners, a Deduction for Building Improvements lets them claim the cost of painting or enhancing a building’s frontage against their income if claimed within two years. The Property Investment Incentive grants a tax credit for up to 24 months of rental income for properties built between July 2016 and December 2018.
Commercial Property Rate Incentives offer discounts for early payment of property rates. Green Incentives provide a one-time tax deduction for significant energy efficiency upgrades. Businesses can claim Training Costs at 150% (or 160% for 2021–2023) for employee qualifications relevant to their work. Small Business and Start-Up Incentives include 100% capital allowances in the first year, social insurance credits, and tax credits for planning fees and new business profits, with specific limits and conditions. For 2021–2022, a Marketing Incentive allows additional deductions for promoting Gibraltar as a business or tourism destination, while an Employment Incentive for 2021–2023 provides a deduction of 50% of fixed salaries for new employees.
Gibraltar Double Tax Treaties
United Kingdom
