GIBRALTAR is trying to lure hedge funds from their London offices with promises of low taxes on the British overseas territory.
Fabian Picardo, chief minister of Gibraltar, urged fund managers to consider that it is much cheaper to do business on the Rock
He invited hedge fund managers to the territory where they were told income tax could be limited to £30,000 a year no matter how many millions they earned.
The promotional material handed out to the multi-millionaire fund managers stated that they are ‘unlikely to be liable for corporation tax’
It went on to say that income tax bill could be reduced even further if the manager was granted ‘special tax status’ as a ‘high executive possessing special skills’.
The Rock offers additional financial incentives including no VAT and social security payments of just £120 per family a month. This is compared to the UK where the top rate of income tax is 45% and VAT stands at 20%.
Picardo has previously denied allegations that Gibraltar is a tax haven and insists the peninsula complies with all European Union tax and transparency regulations.
He told the Guardian that the promotional campaign was going well with ‘a number of people that used to operate out of Mayfair now in Gibraltar’.
“This is a process that is going to continue. Gibraltar presents a serious advantage in the interest of shareholders,” he added. “At the end of the day it is in the interest of shareholders that hedge funds maximise revenue.”