How do I Open a Bank Account in Gibraltar?

Many entrepreneurs and capital owners are asking about the possibility of opening a bank account in Gibraltar. In this article, we will assess the situation, and also tell you if it is possible and how much effort it requires.

Banking industry in Gibraltar:
Why is a bank account in Gibraltar of interest?

Gibraltar is located at the southern tip of the Iberian Peninsula. Legally, Gibraltar is under the jurisdiction of the United Kingdom. The basis of the economy is ship maintenance, tourism and financial services.

As a territory of the UK, Gibraltar is part of the European Union, but at the same time has a separate tax system from both the UK and the EU. As a result, there is no need to pay VAT (VAT) and with the right structure, there is no need to pay corporate tax for non-resident companies.

There are also exempt companies (exempt companies) that pay tax at a reduced rate and, according to experts, are an adequate replacement for companies in Cyprus.

The financial sector provides about 20% of the country’s GDP, banks are no exception. Both local and foreign banks are represented in Gibraltar. The market is regulated by the Financial Services Commissioner.

What advantages does banking in Gibraltar offer?

• Relatively low service rates;
• Deposit insurance up to 100,000 euros, as in the entire territory of the European Union;
• Some banks may hold customer deposits in other jurisdictions for additional protection and diversification;
• A favorable tax regime that allows you not to pay taxes on interest on deposits, while local banks exchange data under FATCA and CRS, including with Russia;
• A well-deserved reputation of a respected banking center that complies with all the rules and is regulated by the Financial Services Commission.

Who can open a bank account in Gibraltar?

Both individuals and companies want to open a bank account in Gibraltar. However, not everyone will be able to get the coveted Gibraltar account.

The first obstacle is that Gibraltar has been and remains an important British military facility. This is a key point through which many sea routes pass. In other words, allowing extra people into Gibraltar’s economy means increasing security risks.

For this reason, it is practically impossible to open an account for individuals.

The exception in some cases will be the private-banking client. In this case, it is necessary to invest at least 1 million euros to a local account. At the same time, you will not get fundamental differences in the level of service and capabilities from private banking in other jurisdictions, such as Switzerland or Liechtenstein.

Gibraltar banks are ready to work only with residents.

If you open a company, then the chance is a little higher here. With some luck, resident companies will be able to open an account, which have an office, employees and full-fledged activities in Gibraltar. Although at the same time, some tax advantages offered by offshore (non-resident) companies are lost.

As for offshore companies, they have a theoretical opportunity to open a bank account in Gibraltar only if they are engaged in one of the following business areas:

• Implementation of banking services worldwide;
• Development of computer games;
• Insurance;
• Management of funds, mutual investment schemes and trusts;
• Maintenance of sea vessels;
• Registration of maritime documents.
• At the same time, offshore companies are prohibited from operating in the local market and providing services to residents of Gibraltar. They are also prohibited from owning real estate in the country.

How to open a bank account in Gibraltar

In order to open an account in Gibraltar, you should carefully prepare and take into account the following points:

Most banks do not work with clients directly and prefer to cooperate with specialists. This is also beneficial to the client, since a good specialist will help with the paperwork, which will reduce the chance of denial of service.;

• To open an account, both in private banking and for corporate purposes, a personal meeting with bank managers may be required;
• Documents need to be translated into English;
• It is almost impossible to open personal accounts, private banking is difficult even with amounts from 1 million euros;
• Corporate accounts are opened for specific types of activities, but also with great difficulties;
• Gibraltar exchanges tax information under FATCA and Common Reporting Standard;
• Customers from the CIS are perceived with additional caution.

Gibraltar banks have the right to demand not only the usual documents proving the identity of the beneficiaries and their residential addresses, but also additional ones. They carefully select clients, which makes the procedure for opening an account in Gibraltar long and unpredictable.

If you are interested in opening an account in Gibraltar, then write to us at info@offshore-pro.info . We will offer you an individual solution that will take into account your situation. Sign up for a free consultation on the selection of a bank account.

Open a bank account in Gibraltar and alternatives

If you need a bank account faster and with more predictability, then we are ready to offer you alternatives. These can be both payment systems and bank accounts around the world.

If you have opened a company in Gibraltar, then you will be able to open a corporate bank account in almost any country. The specific choice depends on the type of business, on the location of the client.

It is not easy to open a non-resident corporate account in general, but for a company from a reputable jurisdiction, after all, it is much more predictable.

If you wish to open a business bank account in Gibraltar, our team here at IB-IA GROUP UAB will be delighted to assist you. We have eight years of experience in helping clients to open bank accounts in Europe. We tap into our vast network of trusted partners in the European financial services industry to offer the most suitable and cost-effective solutions that improve the functioning of the businesses we serve.