To open a trust in Gibraltar, founders will draw up the trust deed in accordance with the Trustee Act, the main law that governs trusts in this jurisdiction. Several types of trusts can be set up in Gibraltar and for some of these certain registration principles are in place, as per the Registered Trust Act 1999. Our experts in company registration in Gibraltar can give you complete information about their advantages and particularities.
| Quick Facts | |
|---|---|
| Governing Law | The Trusts (Private International Law) Act 2015, the Registered Trust Act 1999, the Trustees Act, etc. |
| Trust incorporation in Gibraltar | By means of a trust deed |
| Trust registration | With the Registrar of Registered Trusts |
| Types of trusts | – asset protection; – discretionary; – life interest. |
| Trustees | A person or entity |
| Number of trustees | One or more |
| Trustee residency requirements | Does not have to be a resident in Gibraltar |
| The appointment of new trustees | Possible, according to the trust deed |
| Trustee duties | Manage the assets placed in the trust accordingly and in the best interest of the beneficiaries. |
| Trustee liability | As per their fiduciary duties |
| Trustee powers | Appoint new trustees, exercise the power of sale and purchase, insure, renew, pay money, delegate, appoint agents, etc. |
| Court appointed trustees | The court may appoint a new trustee(s) in several cases, including when the entitled trustee is not for for this role. |
| Trust beneficiaries | One or more individuals or organisations |
| Trust taxation in Gibraltar | 15% tax rate on income accrued in Gibraltar |
| The transmission of property | According to the trust deed |
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Trust incorporation steps
A trust in Gibraltar is a written agreement created by the settlor (the creator of the trust) for the benefit of one or more beneficiaries. Through this, a trustee (natural or legal person) shall hold powers over certain property, until such property is distributed to the beneficiaries according to the settlor’s instructions.
In summary, when a settlor decides to open a trust in Gibraltar the parties will be following:
- The settlor (individual or entity) owning the property or assets that will be placed in the trust;
- The beneficiary/beneficiaries (natural or legal persons) who will have access to the property or assets at a given time;
- The trustee (person or entity) which is entrusted by the settlor with the property and/or assets. The trustee is bound to the settlor by a fiduciary duty.
The trust deed is the incorporation document for the trust, and our experts in opening a business in Gibraltar can assist with its drawing up and vetting. We can also help you establish a company in Dubai, through our local affiliates from BridgeWest Dubai.
Types of trusts in Gibraltar
Several types of trusts can be incorporated in Gibraltar, among which we can mention:
- Discretionary trusts: the manner in which the assets are handled is left largely at the discretion of the trustees, subject to law;
- Asset protection trusts: usually suitable for high-net-worth individuals as they allow for adequate separation of the assets placed within;
- Life interest trusts: one of the beneficiaries receives lifelong assets from the trust.
Those who wish to know more about each of these types before they open a trust in Gibraltar can reach out to our local team of experts.
As the deed may provide, some trusts are entered into the Registrar of Registered Trusts, as per the Registered Trust Act 1999. Some of the basic information included in the trust registration form is summarized below by our team, which can also help you set up a company in Gibraltar:
- The name of the trust;
- A copy of the trust deed;
- Details concerning the trustees (the principal acting trustee and others);
- Details concerning the beneficiaries, including their address and taxpayer reference;
- A statement by the principal acting trustee declaring that the information is correct and complete.
Personal information about the trustees and the beneficiaries (such as their full name, address, and taxpayer reference) is submitted when individuals open a trust in Gibraltar. Information on the resident or non-resident status is also provided at this time.
Trust taxation in Gibraltar
Trusts can be subject to different taxation regimes in Gibraltar. Generally, foreign individuals choose to open a trust in Gibraltar because of certain tax advantages, as the income received by a beneficiary under a trust can be exempt from income tax in Gibraltar in some cases.
For a non-resident, there will be no estate duty, no inheritance or capital gains tax, and no wealth tax or gift tax.
For trusts that are subject to taxation, a tax return is mandatory. Our team summarizes some key information below:
- A resident trust in Gibraltar is liable to tax at a standard rate of 30%;
- The trust tax return is filed by the trustee no later than November 30th following the end of the respective year’s assessment;
- If there are more than 4 trustees and more than 5 beneficiaries, the required information will be submitted using a supplement to the return.
We remind those interested that professional trustee services are an option for those who open a trust in Gibraltar.
Contact us for more details about trusts as well as general company incorporation services in Gibraltar.