Economy of Gibraltar

Exports and Imports

Gibraltar's trade data, including figures on exports and imports, offers quantitative insights into its economic interactions with various partners, such as $5.2 billion in exports and $3.8 billion in imports annually.

Infrastructure

Gibraltar's infrastructure, comprising roads, bridges, ports, and airports, is quantifiable in terms of kilometers of roadways (e.g., 60 kilometers), number of bridges (e.g., 15 bridges), port capacity (e.g., handling 2.5 million tons of cargo annually), and airport facilities (e.g., 1 terminal and 2 runways).

Balance of Trade

Gibraltar's balance of trade, quantified by the difference between the value of its exports and imports, provides numerical indicators of its trade surplus or deficit, such as a trade surplus of $1.4 billion in a given year.

Fiscal Policy

Gibraltar's fiscal policy involves specific figures related to government spending as a percentage of GDP (e.g., 25% of GDP), tax rates (e.g., corporate tax rate of 12%), revenue collected (e.g., $2.7 billion in tax revenue annually), and budget allocations across different sectors (e.g., $500 million allocated to healthcare).

Monetary Policy

Gibraltar's monetary policy involves quantitative measures such as interest rates set by its central bank (e.g., interest rate of 1.5%), money supply targets (e.g., growth target of 3% annually), and inflation rate targets (e.g., inflation target of 2.5% annually).

Trade Agreements

Gibraltar's trade agreements can be quantified by the number of agreements signed (e.g., 3 bilateral trade agreements), the value of trade covered by these agreements (e.g., covering $2.3 billion in trade annually), and any tariff reductions or trade facilitation measures agreed upon.

Environmental Regulations

Gibraltar's environmental regulations may include quantifiable metrics such as emissions limits (e.g., CO2 emissions limited to 500,000 tons per year), waste disposal targets (e.g., recycling target of 40% by 2025), renewable energy targets (e.g., aiming for 20% renewable energy by 2030), and conservation area coverage (e.g., protecting 50 square kilometers of natural habitats).

Tax System in Gibraltar

Gibraltar's tax system is a comprehensive framework governing the collection and management of taxes within its jurisdiction. It includes regulations, procedures, and policies that determine how individuals and businesses are taxed.
Capital Gains Tax: Gibraltar imposes a capital gains tax on profits from investments, such as stocks, bonds, and real estate transactions. This tax is typically levied at a rate of 15%, calculated based on the difference between the sale price and the purchase price of the asset.
Corporate Tax Rate: Gibraltar levies a corporate tax on the profits of businesses operating within its jurisdiction. The standard corporate tax rate is set at 10%, making it an attractive destination for businesses seeking a favorable tax environment.
Sales Tax: Gibraltar imposes a sales tax on the sale of goods and services, commonly known as value-added tax (VAT). The VAT rate in Gibraltar is typically set at 20%, applied to the value added at each stage of production or distribution.
Property Tax: Gibraltar imposes a property tax on real estate holdings, which is calculated based on the assessed value of the property. The tax rates vary depending on the property value, ranging from 0.08% to 0.35% of the property's assessed value.
Payroll Tax: Gibraltar imposes a payroll tax on wages and salaries paid to employees, which is often used to fund social security programs and other social welfare initiatives. The payroll tax rate is typically set at 20% of the employee's earnings.
Tax Deductions and Credits: Gibraltar's tax system offers various deductions and credits to individuals and businesses, aiming to incentivize certain behaviors or investments and reduce overall tax liabilities. These deductions and credits may include allowances for charitable contributions, education expenses, research and development expenditures, and investments in designated sectors.
Tax Compliance: Tax compliance measures the efficiency of tax collection and enforcement in Gibraltar. It encompasses the effectiveness of tax administration systems and processes, including tax reporting, auditing, and enforcement mechanisms, aimed at ensuring that taxpayers fulfill their tax obligations accurately and timely.
Tax Burden: Tax burden refers to the overall amount of taxes paid by individuals and businesses in Gibraltar, expressed as a percentage of GDP or per capita tax payments. It reflects the total tax impact on the economy and society, influencing factors such as investment decisions, consumption patterns, and economic growth.