The situation in the tax paradise Gibraltar is absolutely unique and recently the system has been examined closely by the European Member States and receives criticism since the southern colony operates under the British flag.
The fact is that Gibraltar's 6.5 square kilometers has 30,000 residents and 75,000 registered companies. Although no official data exists, everybody knows that many of these companies have the sole activity to make money. Most of these companies are so-called "off shore".
In pure theory, "off shore" only means that the company is registered in a country where they have no right to be active and all transactions must be done in other countries.
The advantages are many:
No taxes, anonymous shareholders, very simple procedures to form the company with low costs and in any currency. In addition, these companies are not obliged to account to the local authorities in Gibraltar and only pay a fee of 500 Euro a year regardless of how great the profit may be.
The problem with many of the companies registered in Gibraltar is related to criminal activities in Spain and the rest of Europe.
Cecilia Helland