Insurance

Insurance

In recent years Gibraltar has enjoyed significant growth in its insurance industry, as foreign investors have realised the benefits and advantages that the jurisdiction provides. As a jurisdiction of the European Union, insurance companies that set up in Gibraltar are able to take advantage of the third life and non-life directives, which allow an insurer to passport its services across the European Union on the basis of a single licence, issued by the Home State regulator, in this case the Gibraltar Financial Services Commission.


The key benefits that setting up in Gibraltar provide are the following:

Speed of set-up: Typically, promoters can expect to set up an insurance company within three to six months, which allows investors the important flexibility of taking advantage of changing market conditions and other circumstances.

Close regulatory relationship: As a small jurisdiction, licensees have an interactive and close relationship with the regulator, the Gibraltar Financial Services Commission. The nature of this relationship means that changes can be made and approvals obtained quickly.

Lower solvency requirements: Given the close relationship mentioned above, licensees can usually operate with lower capital requirements than in other European jurisdictions. This not only increases return on capital, but also frees up capital to be invested in other return enhancing projects.

Lower taxation: Insurance companies are taxed at 10 per cent on their profits. This is one of the lowest tax rates across the European Union, whilst other types of income such as capital gains, are not subject to tax in Gibraltar. Personal tax breaks are also available to key individuals who bring specialist skills to Gibraltar.

No Value Added Tax: Gibraltar is part of the European Union, but it is outside the Customs Union, which means that there is no Value Added Tax on supplies of services or goods in Gibraltar. This could mean further savings on supplies made to Gibraltar insurers by third parties.

We have staff that are qualified insurance personnel and have in depth experience in assisting investors establish and run insurance companies in Gibraltar.