The Chief Minister of Gibraltar, Peter Caruana, told members of the legal and financial communities in London this week that his government is working to ensure the Rock will remain a competitive low tax jurisdiction for some time to come, with a thaw in relations between Gibraltar and Spain also promising a bright future for the local economy.
In a speech given to an audience of prominent business people and professionals at the Royal Automobile Club, Mr Caruana explained that Gibraltar has diversified its product offering away from traditional brass plate and deposit services to new, more sophisticated areas, transforming the jurisdiction into a "truly on-shore off-shore international and European finance centre”.
Despite the introduction of the European Savings Tax Directive in July this year, Mr Caruana stated that Gibraltar's banking industry continues to flourish, employing some 700 people and welcoming "important newcomers". Meanwhile, he noted that the insurance sector has grown substantially in size in recent years with the number of locally licensed companies having grown to 45 from 13 in four years.
According to Mr Caruana, new legislation will allow Gibraltar to become a major player in the establishment of pan-European corporate pension schemes. He also revealed plans to launch a stock exchange, which will be backed by major European institutions.
The Chief Minister told the delegates that: "We will remain committed to the principle of 'no' or 'low' tax, and with the help of so many leading financial services institutions provide an environment for the safe and prosperous provision of financial services throughout the EU and the world.”
Furthermore, Mr Caruana noted a "significant thawing" in relations between Gibraltar and Spain which is likely to lead to new agreements allowing more extensive international air service connections with the Gibraltar Airport, and the removal of obstacles blocking the full use of telecommunications.
