The Gibraltar Finance Centre Council (GFCC) has said it “broadly welcomes” the Gibraltar budget measures announced yesterday in what it describes as “very difficult circumstances.” 

A statement continued: “We obviously recognise the impact that Covid-19 has had locally, and that there is clearly a need to strengthen Government finances.  The increase in the corporate tax rate to 12.5% was not wholly unexpected, particularly in the context of the international agenda, and we do not believe it will significantly hamper economic activity in Gibraltar, particularly in the light of the very encouraging and positive measures announced to encourage investment in people, marketing and capital expenditure by business. 

“Gibraltar remains a very competitive compliant low tax jurisdiction. We look forward to the coming year, and believe the financial sector in Gibraltar is in a good position to face the challenges and opportunities that lie ahead. We will be working with HMGOG on details around personal status and looking to ensure it remains attractive for long term planning for new and existing entrants to Gibraltar.”