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FUNDS

Gibraltar can be an attractive and competitive location to base EU Investment Funds. It has developed over time to become a reliable location for establishing and servicing funds.

Gibraltar is a very technical fund jurisdiction with qualified and experienced professionals, various tax advantages, an approachable and modern regulator and a proactive association (Gibraltar Funds Industry Association – “GFIA”).

Gibraltar offers an attractive corporate tax rate of 10% and all income received by a Gibraltar fund accruing and deriving outside of Gibraltar is not liable to taxation. There is also no dividend withholding tax for non-Gibraltar residents.

Funds are be set up in various ways:

Private Fund
Experienced Investor Funds
UCITS
Non-UCITS Retail

We can assist clients with the formation of all the above types of fund either directly or via our network. Our in-house funds team can provide fund administration services in respect of Private and Experience Investor Funds.

Private Fund

As a collective investment scheme (“CIS”) this type of fund can be made available privately to an identifiable group. It can accept up to 50 participants (investors). There are no restrictions to the type of investor that can subscribe, as long as they belong to the identifiable group which may be families, employees or groups of friends wishing to manage investments in a fund structure.

As funds are not regulated or authorised by the FSC, they are cost-effective and can be quick to set up. However it is important that the appointed directors follow the investment objectives and provisions in the offering document of the private fund and therefore legal input in drafting the same would be recommended.

Experienced Investor Funds

The Experienced Investor Fund (“EIF”) regulations allow experienced investors the opportunity to set up funds rapidly with minimum regulatory intervention. These funds can be formed as limited companies or as a Protected Cell Company (“PCC”) and may be open or close ended. There are various requirements including that two local licensed directors are appointed to the board and an expectation that the GFIA corporate governance code is observed.

The use of a Protected Cell Company (“PCC”) provides funds with the facility of separating it’s assets into different ‘cells’ through a segregated portfolio. These assets and liabilities are ring fenced from other cells and also from the main assets of the fund. This allows for various investors to deploy separate investment strategies.

Need support? Contact:

Michael Mahtani

B.Sc (Hons), FCIS, TEP

Abacus Gibraltar