Gibraltar is proving to be remarkably resilient in turbulent times. Perhaps that shouldn’t be a surprise. A low taxed well regulated economy is an attractive proposition in any financial crisis. With corporation tax at 10%, income tax peaking at an effective rate of 25%, and no wealth, capital gains or inheritance tax, Gibraltar is appealing to both individuals and companies willing to relocate to save costs.

Gibraltar is some 2.5 square miles in size and has a population of just below 30,000, although this increases by an additional 8,000 each day as workers commute from Spain.

Gibraltar – Relocation

Chesterton is highly experienced in helping companies seeking to relocate or establish their business in Gibraltar. This encompasses finding suitable office premises in Gibraltar and residential property for all the staff in Gibraltar or nearby Spain. We also offer ancillary services, for example, organising removal vans, helping with the opening of bank accounts and introducing families to schools. These relocation packages have proven to be extremely popular and we have recently expanded this service to meet demand.

Tax requirements are more bespoke. As the only property agent in Gibraltar led by an accountant, we specialise in tax driven relocations. We affiliate with certain advisers depending upon the clients’ needs, with much of the tax advice being required before leaving the UK as opposed to on arrival in Gibraltar. But it needs to be joined-up tax advice to be most effective.

To benefit from the attractive tax rates, the company or individual must be Gibraltar resident, which at the minimum entails buying or renting a property.

Gibraltar commercial property

Demand is such that office space is in short supply in Gibraltar. Expect to pay £350 per square metre per annum rent in Ocean Village, a marina-based mixed use development. In Europort, the largest office building in Gibraltar, and Waterport Place, an office building completed in 2008 between Ocean Village and Europort, office rents are closer to £300 per square metre per annum. Outside of these areas, expect to pay £200 – £290 per square metre per annum in rent (adding a further 33% on average to cover service charges and rates).

Lease terms vary, but expect a minimum three year, a probable five year and a desired 10 year term from the landlord. The relevant covenant strength of the tenant probably determines who holds the ace in the negotiations.

Gibraltar residential property

The popular areas for incoming executives are the two marinas, Ocean Village and Queensway Quay, and the residential area around Europort.

Ocean Village consists of some 480 apartments sharing 3,000 square metres of pools and gardens. The development includes restaurants, bars, the only casino in Gibraltar, a marina, and Chesterton. Completed in phases between 2006 and 2009, the location of Ocean Village is one of its main advantages, being walking distance from the border with Spain, the airport and the main shopping area. Tradewinds, a Taylor Woodrow development adjacent to Ocean Village, adds a further 100 apartments to the area, albeit has less amenities. Prices in these developments range from £3,600 to £6,000 per square metre.

Queensway Quay is a more residential and less commercial marina than Ocean Village. It is deeper into Gibraltar whilst still being walking distance to Europort and the shopping centre. Prices are in line with Ocean Village.

Other opportunities exist in certain developments throughout Gibraltar. And there are houses as well for families, albeit the supply is limited and there will be a compromise somewhere as the new demands on Gibraltar’s housing supply cannot always match up to the demand.

Gibraltar Lifestyle

Gibraltar is a small and friendly place in which to live. Lifestyle pursuits include sailing, and golf in nearby Spain where one can take advantage of the many excellent golf courses within easy reach of the border. Schools are good, crime is low and the entrepreneurial opportunities are limitless.

The only negative is the border with Spain, which at times can be frustratingly slow, but then so is the M25!