January 19, 2016 at 6:10 am

Tax Benefits in Gibraltar

Nobody likes paying taxes. Though an inevitable and inescapable reality for anyone in this world, taking the time to understand the various ways certain taxes affect your wealth is important. You want to make sure your money is safe and a great way to protect it from the ever changing and confusing tax laws is to set up a trust in Gibraltar. People have been putting their money in off-shore trusts for years and Gibraltar is simply one of the more tax friendly places to do it. Here is why setting up a trust fund in Gibraltar is tax friendly and trustworthy.

likes paying taxes

What Is a Trust?

The money you make is yours and you are entitled to do whatever you please with it. If you are interested in protecting your money for whatever the reason a trust is the way to go. Without getting too much into the specifics, a trust is basically an agreement where you are placing wealth or property in the hands of Trustees in the form of a trust deed. When a trust is created the trustees are now in control of whatever money you put in it. Now you aren’t just giving your money away, but rather entrusting it to be held by the trustees under certain guidelines.

Why Should I Put My Money in One?

There are many reasons people put money in trusts. One being to ensure that a piece of valuable property be passed on to a family member after a person’s death, which guarantees that no one else will lay claim to it. Another reason people use trusts is to avoid certain tax penalties and creditors. By putting your money in a trust, death, wealth, and inheritance taxes, will not affect it. Of course, there are a lot more reasons to put money in a trust, but they all usually entail some level of protection from the tax man.

many reasons people

Why Gibraltar?

People have been using Gibraltar trust for years. Perhaps the main reason being, that non-residents of Gibraltar can set up these trusts and not be subject to the taxes there. As long as the person instituting the trust does not live in or make any money in Gibraltar, that money will remain untouched by taxes. Of course, in order to set up a trust in Gibraltar the trustees would have to be residents there, but the laws are set up so that the country of residence of the trustee, in this case Gibraltar, is also not affected by the taxes. Another great reason people are setting up trusts in Gibraltar is privacy. Unless setting up a very specific type of trust, most do not require your filing to be reported to any branch of government there. This is beneficial as it keeps your assets confidential and not subject to scrutiny.

filing to be reported

Do a Little Research

If you are thinking about using a trust in Gibraltar, make sure you take the time to jump online and do a little research. There are plenty of sites to check out and the information presented on them can be very valuable.

Do a Little Research