Industry and Sectors

Your Destination for Fund Establishment

Gibraltar has emerged as a leading hub for establishing and servicing investment funds, offering a robust and dynamic financial environment. With a skilled workforce of industry professionals, a proactive regulator, and the support of the Gibraltar Funds & Investments Association (GFIA), Gibraltar is the ideal location for your fund operations.
 

Key Advantages:

• Innovative Regulations: The newly revamped Experienced Investor Fund (EIF) regulations are attracting significant interest, particularly for fund re-domiciliation. This positions Gibraltar as a prime destination for new funds and investment activities.

• Comprehensive Services: With a full range of services including fund administration, legal counsel, custodianship, and auditing, Gibraltar is equipped to support your fund's needs.

• Favorable Tax Environment: Gibraltar’s tax regime is highly beneficial, featuring a 10% corporate tax rate, no tax on income derived outside Gibraltar, and no withholding tax for non-residents.

Fund Structures:

1. Private Funds: Ideal for small, identifiable groups such as families or employee groups, these funds can have up to 50 participants and are not regulated by the Financial Services Commission (FSC). They offer flexibility with minimal restrictions and are cost-effective to establish.

2. Experienced Investor Funds (EIFs): Designed for high net worth or knowledgeable investors, EIFs can be operational within 14 days. They offer flexibility with no statutory investment restrictions, making them a quick and efficient option for experienced investors.

3. UCITS Funds: These EU-regulated funds are suitable for retail investors and allow for the free operation across the EU. They comply with the EU’s UCITS directives, providing a secure investment structure for transferable securities.

4. Non-UCITS Retail Funds: Licensed by the FSC, these funds cater to retail investors and can be structured in various forms, including umbrella, hedge, feeder, and mutual funds.

5. Protected Cell Companies (PCCs): This structure allows for the segregation of assets and liabilities into different ‘cells’, enabling diverse investment strategies within a single fund.

Explore the opportunities Gibraltar offers for your fund management. With its strategic location and business-friendly environment, Gibraltar is ready to support your investment success.

Adapting to the New Financial Landscape

The global financial crisis has fundamentally reshaped the banking industry. To emerge stronger, banks must not only stabilize in the short term but also strategically adapt to the evolving business, capital, and regulatory environment.

Key Strategies for Success:

• Targeted Investment: Focus on market segments where you can add the most value and have the courage to scale back less viable operations.

• Regulatory Compliance: Prepare for increased capital buffer requirements, which will influence institutional strategies and structures. 

• Core Competency Focus: Banks supported by government funds should concentrate on core strengths and customer relationships, while those with more flexibility can explore growth and acquisitions.

• Risk Management: Success will hinge on robust risk analysis and integrating risk awareness into governance and decision-making processes.

• Simplification: Streamline complex structures to control costs and enhance management oversight.

Explore how adapting these strategies can position your bank for future success in a transformed financial landscape. 

International e-Business Centre

The Government of Gibraltar is committed to transforming the region into a leading international e-Business Centre. By leveraging advancements in information and communication technology (ICT), Gibraltar aims to capitalize on its potential as an emerging information society.

The ICT revolution has significantly impacted various sectors including commerce, education, entertainment, banking, leisure, travel, and legislation. In response, governments, organizations, and businesses must adapt their practices to thrive in a rapidly evolving technological landscape.

To support this transformation, Gibraltar is developing strategies to create an optimal environment for electronic business. This initiative is underpinned by enhanced telecommunications infrastructure, supportive legislation, and a commitment to facilitating the growth of electronic trade.

Key Developments:

• Telecommunications Liberalization: The sector is undergoing significant changes driven by new technologies and regulatory reforms. The market is now open to competition, with new service providers establishing operations in Gibraltar.

• Supportive Legislation: The Electronic Commerce Act (TECA 2001) and the incorporation of EU directives into local laws provide Gibraltar with a competitive edge over other offshore jurisdictions.

• Strategic Partnerships: Recognizing the specialized nature of this industry, PwC has established a network of local and global professionals. With a dedicated telecommunications industry group, PwC offers a comprehensive range of services backed by extensive experience and sector-specific expertise.

As technological advancements and market liberalization continue to accelerate, decision-makers in Gibraltar are equipped to address complex challenges and seize emerging opportunities. With its strategic initiatives and robust support framework, Gibraltar is poised to become a premier destination for e-business.

Strategies for Resilience and Growth

The financial services industry is grappling with its most severe crisis since the 1930s, marked by pervasive uncertainty, market instability, and widespread write-downs. Funding sources are dwindling, equity values are increasingly volatile, and demand for financial products is waning due to a global economic slowdown and declining business and consumer confidence.

To regain investor trust, attract funding, and stabilise in the short term, organizations must exhibit a deep understanding and control of their risks. In the long run, transforming business models and redefining performance objectives and incentives will be crucial for sustainable value creation.

Despite the challenges, the current market environment presents significant growth opportunities. Well-capitalised firms are well-positioned to pursue acquisitions and expand their business operations. Companies that can manage costs effectively and adapt to the evolving needs of individual customers will forge lasting and profitable relationships. Additionally, emerging markets and alternative investments continue to offer substantial potential for expansion.

Key Areas in Financial Services:

• Fiduciary Services: Expertise in managing assets and trusts for clients.

• Banking and Capital Markets: Navigating complexities in financing and investments.

• Insurance: Adapting to regulatory changes and market demands.

• Financial Services Challenges: Addressing issues in market reporting, operations, people, regulation, restructuring, and risk.

How PwC Supports Financial Services Organizations:

PwC offers a global network of specialists who assist financial services organizations in overcoming challenges and seizing opportunities. From risk management and restructuring to business development and talent management, PwC helps firms enhance their market reporting, streamline operations, manage personnel, adhere to regulations, and mitigate risks effectively.

Cross-Border Opportunities and Compliance

Gibraltar's insurance sector offers significant cross-border opportunities, allowing licensed insurers to cover risks in the UK and EU without requiring separate licenses. This is possible because the UK confirmed in 1997 that Gibraltar's supervision standards align with its own.

As a result, insurers in Gibraltar can provide cross-border services within the EU under European law.

An agreement established in 2014 between Gibraltar and the UK further enhances this capability by allowing for Part VII transfers to Gibraltar. Additionally, with the implementation of Solvency II regulations, Gibraltar's regulator is actively informing insurers about the operational and compliance impacts. Gibraltar is also positioning itself as the EU's preferred jurisdiction for Insurance Linked Securities (ILS), supported by specific regulatory frameworks.

• Market Presence: In 2012, Gibraltar’s insurance companies wrote a total gross premium of £3.8 billion and held assets over £9.0 billion.

• Regulatory Support: The 2009 Insurance Companies (Special Purpose Vehicles) Regulations and the 2001 protected cell companies legislation facilitate Gibraltar's ILS ambitions.

• PwC Expertise: PwC provides extensive insurance industry expertise, with access to local and global specialists, serving various insurance entities in Gibraltar, including non-life, life direct, reinsurance, and captive insurers.

Embracing Innovation: Cryptocurrency

Gibraltar has emerged as a pioneering hub for cryptocurrency and blockchain technology, thanks to its forward-thinking regulatory framework. In January 2018, Gibraltar introduced the Distributed Ledger Technology (DLT) Regulatory Framework, becoming one of the first jurisdictions to establish regulations specifically for blockchain-based businesses.  

This progressive approach has attracted numerous cryptocurrency exchanges and fintech companies seeking a stable and supportive environment. The Gibraltar Financial Services Commission (GFSC) oversees the licensing of DLT providers, ensuring compliance with rigorous standards related to financial resources, governance, resilience, anti-money laundering (AML), customer protection, and cybersecurity.  

As the digital currency sector continues to evolve, Gibraltar remains committed to fostering innovation while maintaining robust regulatory oversight. PwC is at the forefront of this dynamic industry, providing specialised advisory and assurance services to businesses operating within the cryptocurrency space, leveraging both local expertise and the global PwC network to navigate the complexities of the digital economy.

A Catalyst for Growth

The construction industry is crucial for economic growth, and Gibraltar's sector is thriving, reshaping the skyline through significant government-led investment programs. The Development and Planning Commission (DPC) facilitates this growth by regularly reviewing new proposals.

Supporting industries are also benefiting, as many large construction firms outsource key functions like payroll, IT, and accounting to specialized service providers.

With deep local knowledge and extensive experience with construction firms, PwC is well-equipped to support your business by offering:

• Core services

• Contract analysis

• Outsourcing evaluations

• Growth strategy advice

• Sustainability planning

  Explore how we can help maximise your value in Gibraltar's dynamic construction landscape.

A Premier Tourist Destination

Gibraltar boasts one of the highest tourist-to-resident ratios, making tourism a cornerstone of its economy. Visitors are drawn to its rich military history, warm Mediterranean climate, and unique wildlife, including Europe's only wild Barbary macaques.

Gibraltar's marriage laws, which require no residency, attract couples from around the world. Additionally, its VAT-exempt status makes it a shopping haven for deals on goods like cigarettes, alcohol, jewellery, and perfumes. Many day-trippers take advantage of low fuel prices when driving into Gibraltar.

The rise in cruise ship visits has also increased the number of tourists arriving by sea. PwC supports a diverse range of businesses in Gibraltar, from hotels to retailers, by leveraging local knowledge and the global PwC network to deliver exceptional service.

A Shopper's Paradise

Experience the ultimate shopping getaway in Gibraltar, where the absence of VAT means fantastic savings on a wide array of products. From popular British high street chains to renowned international brands, Gibraltar offers a diverse retail landscape that caters to every shopper's tastes. 

Despite the current economic challenges and credit crunch, the retail and consumer goods sector continue to thrive in Gibraltar. At PwC, we understand these complexities and are committed to supporting retail businesses with tailored solutions. 

Our team of seasoned professionals collaborates with a variety of retail and consumer goods companies, including multinationals, local enterprises, privately-owned businesses, family-run shops, and innovative entrepreneurs. 

As industry leaders, PwC excels in helping clients navigate financial, tax, risk, and reporting requirements. Through our global network of retail experts, we are uniquely positioned to assist our clients in tackling the international challenges they face.

Explore the vibrant shopping scene in Gibraltar with confidence, knowing that PwC is here to support your business needs and ensure your continued success. 

Managing Solicitors' Accounts

In Gibraltar, all practising solicitors must adhere to strict compliance with the Solicitors’ Accounts Rules (SAR). This involves filing a report with the Supreme Court that confirms adherence to these rules.

The report, which must be submitted no later than six months after the end of the reporting period, is prepared by a reporting accountant. It provides reasonable assurance that the solicitor's client accounts are being managed in accordance with the SAR framework.

PwC has a strong presence in this sector, representing numerous clients and leveraging extensive experience. Our access to both local and global industry experts within the PwC network allows us to deliver high-quality services to a wide range of legal professionals in Gibraltar—from sole practitioners to large firms with multiple associates and partners.

As part of our commitment to excellence, PwC shares best practices and offers recommendations for process and control improvements, ensuring that our clients meet all regulatory requirements and enhance their operational efficiency.

A strategic location

Gibraltar's strategic location at the entrance to the Mediterranean Sea has long established it as a key maritime crossroads. As one of the busiest maritime passages, over 71,000 vessels transit the Strait of Gibraltar annually. This prime position offers significant benefits, making Gibraltar an essential port for various shipping services.

Key Maritime Services:

• Bunkering Station: Gibraltar is a leading bunkering hub, thanks to its competitive port dues and VAT-free status. The updated Bunkering Code of Practice ensures top priority for safety and environmental standards.

• Shipping Services: The port offers comprehensive services, including store replenishment, spares, general provisions, and crew changes, catering to vessels of all types and sizes.

• Cruise Liners: An increasingly popular destination, Gibraltar welcomes around 220 cruise ships yearly, boosting local tourism and economy.

• Marinas: With three marinas, Gibraltar attracts short to medium stay visitors, enhancing its appeal as a maritime destination.

PwC provides essential support to key players in Gibraltar's maritime industry. Leveraging local and global expertise, our team delivers high-quality services to ensure your business thrives in this dynamic environment.

Driving Growth in the Automotive Industry

The global automotive industry is experiencing significant growth, driven by increasing customer demand. Automakers are responding with strategies like mass production, product innovation, and diverse marketing techniques to capture market share. 

In Gibraltar, the automotive industry is thriving, with foreign sales playing a pivotal role in its expansion. Local car dealerships have forged strong partnerships with renowned automotive manufacturers, enabling them to sell vehicles abroad without incurring duty fees, provided they comply with HM Customs conditions. To meet growing customer demands, businesses must develop robust inventory and security controls and establish an efficient logistics network.

Despite the growth, both the global and local automotive industries face challenges. Companies need to assess risks and implement medium- to long-term strategies to address these concerns effectively.

PwC brings extensive expertise to clients in the automotive sector, offering a wide range of services to ensure businesses are equipped to handle fluctuations in sales volumes and maintain long-term stability. With our support, automotive companies can navigate industry challenges and continue to thrive.

Ensuring Accountability

In Gibraltar, the Principal Auditor, supported by a dedicated team in the Audit Department, is tasked with auditing all Government departments, agencies, and authorities. This oversight ensures transparency and accountability within public services.

However, numerous companies are fully owned by the Government, spanning sectors such as transport, banking and finance, and construction. Many of these entities are legally required to submit audited financial statements. To maintain objectivity, the auditors for these companies must be external and independent, preventing the Principal Auditor and his team from serving as their auditors.

PwC plays a vital role in providing auditing services to a significant number of Government-owned entities across various industries. With access to industry experts both locally and within the PwC global network, we deliver high-quality services tailored to meet the specific needs of these diverse Government-owned companies.

Elevating Gibraltarian Football

On 24th May 2013, Gibraltar achieved full UEFA membership, enabling the Gibraltar Football Association (GFA) to partake in UEFA club and international competitions. This milestone grants access to vital funding and expertise, fostering the growth of football in Gibraltar.

Since then, Gibraltar's clubs have entered European competitions, with Lincoln Red Imps FC competing in the UEFA Champions League qualifiers and College Europa FC in the Europa League qualifiers. The Gibraltar National Team made its debut in a European Qualifier against Poland on 7 September 2014.

Clubs must obtain a UEFA Club License, adhering to criteria for sporting, infrastructure, and financial standards. PwC supports clubs in this process with expert guidance.

Gibraltar National Team matches are currently held in Faro, Portugal, as the Victoria Stadium does not meet UEFA standards. Plans are underway to build a new stadium or upgrade the existing one, allowing fans to watch their team at home.