Gibraltar Trust Formation

DeltaQuest offer complete offshore trust solutions for both individuals and corporate entities, and can assist you with every stage of your offshore Gibraltar trust formation. In setting up a Gibraltar offshore trust, you will be benefitting from the favorable asset protection and tax planning conditions that Gibraltar offers.

In order to proceed with the formation of your Gibraltar trust, please complete our Trust Application Form.

Conditions for an offshore Gibraltar trust formation

Legal form: Gibraltar law is derived from English common law and the rules of equity, supplemented by certain legislation. Trustee Ordinance of Gibraltar is based on Trustee Act 1893. Although life interest trusts and accumulation and maintenance trusts are used in Gibraltar, the most popular form of Gibraltar trust is the discretionary trust. Such a trust can be used effectively to hold assets which are administered and distributed confidentially, maintaining the client’s anonymity if so desired.

Settlor: Any person who has the capacity to own and transfer property may be the settlor of a trust. The settlor may also be a trustee, a beneficiary or a protector of a trust. The settlor is the creator of the trust and may be either an individual or legal entity.

Protector: To provide ongoing guidance to the trustees it is possible to appoint a protector. The protector is normally a trusted friend, lawyer or colleague of the settlor. The powers which may not be exercised without the consent of the protector usually include the addition and removal of beneficiaries. The protector may also be entrusted with the power to remove and appoint trustees, change the proper law of the trust and its place of administration.

Trustees: Professional trustees must be licensed under the Financial Services Ordinance 1989 and are regulated by the Financial Services Commission. There is no public register of trusts or trustees.  The ownership of trust assets can remain entirely confidential in most circumstances.

Beneficiaries:  A beneficiary is the person who will benefit from the trust. In the case of discretionary trusts, the interests of the named beneficiaries are contingent, meaning that a beneficiary’s interest only becomes a real and fixed interest when the trustees confer a benefit upon the beneficiary. During the lifetime of the Gibraltar trust, beneficiaries may be added or removed. There is no requirement under a discretionary trust for any named beneficiary to receive a benefit.

Taxation: Trust income is exempt from tax in Gibraltar if the trust is established by a non-resident, has no Gibraltar beneficiaries and derives no income locally. The terms of the trust must expressly exclude Gibraltar residents from being beneficiaries. Moreover, Gibraltar has no capital gains tax, gift tax, wealth tax, estate duty, inheritance or death tax.

Time needed for formation: Trusts can usually be formally established and registered within a few days.

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