Relationship with the European Union and EU legislation on offshore companiesAs a member of the European Union, under Article 227(4) of the Treaty of Rome, Gibraltar is subject to all European Law (except for VAT, Value Added Tax, Common Customs Tariff and the Common Agricultural Policy). Gibraltar can already take advantage of European Union directives that facilitate cross border business within the European Union in respect of insurance (Gibraltar Insurance companies can operate in other member states without further licensing), and will soon be able to do so in other areas of financial services like banking and UCITS (Undertaking for Collective Investment in Transferable Securities).When speaking about EU legislation on offshore companies it is worth mentioning that Gibraltar has been a full member of the EU since 1973, when it joined as a UK Dependent Territory. To try and utilise its position in the EU, Gibraltar introduced a 1992 Holding Company. The object is to allow the owner of such companies to benefit from the Parent/Subsidiary Directive 90/435. This permits dividend payments to be deferred from one EU member state to another without any withholding taxes. Notwithstanding the introduction of the said company other European Union members do not appear to accept the veracity of these companies. Recent legislative developments include the enactment of new laws governing e-commerce (Gibraltar was one of the first EU territories to implement the relevant directives), telecom liberalisation and, most recently, the Protected Cell Companies Ordinance 2001. PCC legislation, in particular, is expected to boost the captive insurance and funds sectors. As the only British international financial centre within the European Union, Gibraltar has a common law framework, a highly-educated workforce, and UK-trained professionals. It is renowned as one of the best-regulated finance centres in the world, and as such, has been held up as a benchmark jurisdiction. More on relationship with the European Union and EU legislation on offshore companies. Go to Top 
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