It does not participate in the common tariff and agriculture policy, and does not levy VAT. Gibraltar is an attractive offshore location for investment fund management, trust management, shipping and investment holding companies because of its tax-effective base and its established cost. More important there are no income or capital gains taxes and no exchange controls. Since 2011, there is no distinction between onshore and offshore companies, all Gibraltar companies paying a flat low tax of just 10%. For all practical purposes the dominant currency is British Pound Sterling. There are two official languages – English and Spanish.

There are various types of companies allowed under Gibraltar Law, including Gibraltar tax exempt companies, Gibraltar Non-Resident Companies, Gibraltar Hybrid Companies and the Gibraltar Qualifying company.

The most relevant factors that make Gibraltar jurisdiction attractive to offshore company registration for offshore business conduct are: cost effectiveness and attractive fiscal regime for offshore investors; excellent reputation, stable government and special status within the EU; favorable tax status for offshore banks; the only jurisdiction that offers a flexible tax regime; no capital gains taxes, gift taxes nor wealth taxes; large number of offshore regimes in order to reduce taxation for an offshore company; non-resident companies do not require more than one director; nominee services are used; secrecy is guaranteed by legislation.