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Gibraltar Trusts

Gibraltar is a common law jurisdiction with its Trust law being based on the Trust law of England & Wales and therefore trusts are recognised and given full legal effect in Gibraltar.  The Trustee Act of Gibraltar is the main governing Act and is based on the English Trustee Act 1893, although it has been amended from time to time to better suit Gibraltar.

There are numerous benefits to setting up a Trust the main examples being;

- Asset Protection/Confidentiality
- Tax Benefits
- Succession Rules

Gibraltar Trusts are based on a strong well established trust law and Gibraltar itself being a well- practised active financial centre is familiar with trusts and therefore the confidentiality and asset protection one would expect from a jurisdiction with as good a reputation as Gibraltar has is there and protected by law.  You can only obtain a judgement on a Gibraltar Trust via the judgements (Reciprocal Enforcement) Ordinance, this ordinance does not include all countries so judgements from those countries cannot be enforced in Gibraltar.

- The Discretionary Trust is the most common type of trust used when Asset Protection and Confidentiality are of key importance as the trustees are the legal owners of any assets.  This provides a level of distance between the original Settlor and Potential Beneficiaries.

- Asset Protection Trusts can also be used, but these do have strict criteria and must be registered and pay an annual registration fee and so are not as popular.

If the Trust is established by a non-resident and has no resident Gibraltar beneficiaries and the income is not derived locally then no tax is due on the income.  Gibraltar Trusts can also benefit for the fact that Gibraltar has no capital gains tax, no gift tax, no wealth tax, no estate duty, and no inheritance or death tax.  In short the trust would not be subject to any form of taxation if properly structured.

Under Gibraltar law the perpetuity and accumulation periods of the Trust are one hundred years.  It is possible to register a Gibraltar Trust, but registration is entirely voluntary.
If you would like to learn more about Gibraltar Trusts or Trusts in any other jurisdiction please follow the link below or call us on our offices Telephone Number: 44 20 7097 1385 or contact us

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