Investment Incentives including Govt. & EU Funds
The Gibraltar government is keen on encouraging inward investment particularly in those areas which will generate significant job opportunities for the local workforce. There is a wide range of fiscal and financial incentives as shown below:
European Union Funds
European Union Funding has been a major source of finance for economic regeneration in Gibraltar in recent years. Gibraltar is currently eligible to support under the European Regional Development Fund (ERDF) (for business creation & expansion; technology transfer; environmental and infrastructure projects) and under the European Social Fund (ESF) (for training and retraining projects).
The ERDF Program focuses mainly on infrastructure projects and the creation of businesses and sustainable employment, while the ESF Program deals with extending employment opportunities and developing a skilled and adaptable workforce.
Both these Programs operate under the 2007-2013 Regional Competitiveness and Employment Objective.
Under the current Programs, Gibraltar has been allocated €5.8 Million in the ERDF Program and €3.4 Million in the ESF Program. These allocations have to be match-funded by the Government making the total funds available amount to €18.4 Million.
Wholesale, retail, financial services and mobile investments are areas of business activity not eligible for funding.
Qualifying Individuals commonly known as ´High Net Worth Individuals´
The objective of Development Aid is to encourage investment in Gibraltar by way of development that produces a tangible and substantial benefit to the economy.
Applications for a Development Aid License are made to the Secretary of the Development Aid Committee. If a License is granted, the relevant Government Minister, on the advice of the Development Aid Advisory Committee, will determine what proportion of the total capital expenditure in percentage terms is available for tax relief.
The amount calculated on this basis is available as a deduction against taxable profits, with any unused amount being available to use as a deduction in future years. The amount of profits which have been offset by Development Aid, once distributed to the beneficial owners of the development company, is treated as non-taxable in the hands of those beneficial owners.
Amounts invested in companies of which the Gibraltar Government is a member may, subject to such conditions as the Government prescribes, be offset against assessable income.