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Download This Report Report GIBRALTAR A ROCK AND A HARDWARE PLACE As one of the four island iGaming hubs in Europe, Gibraltar’s tiny 6.8sq.km leaves a huge footprint in the gaming sector Gibraltar has long been associated with Today, Gibraltar is self-governing and for duty free cigarettes, booze and cheap the last 25 years has also been electrical goods, the wild Barbary economically self sufficient, although monkeys, border crossing traffic jams, the some powers such as the defence and Rock and online gaming. foreign relations remain the responsibility of the UK government. It is a key base for It’s an odd little territory which seems to the British Royal Navy due to its strategic continually hover between its Spanish location. and British roots and being only 6.8sq.km in size, it is crammed with almost 30,000 During World War II the area was Gibraltarians who have made this unique evacuated and the Rock was strengthened zone their home. as a fortress. After the 1968 referendum Spain severed its communication links Gibraltar is a British overseas peninsular that is located on the southern tip of Spain overlooking the African coastline as GIBRALTAR IS A the Atlantic Ocean meets the POPULAR PORT Mediterranean and the English meet the Spanish. Its position has caused a FOR TOURIST continuous struggle for power over the CRUISE SHIPS AND years particularly between Spain and the British who each want to control this ALSO ATTRACTS unique territory, which stands guard over the western Mediterranean via the Straits MANY VISITORS of Gibraltar. FROM SPAIN FOR Once ruled by Rome the area fell to the DAY VISITS EAGER Goths then the Moors. Spain reclaimed TO BROWSE THE Gibraltar in the late 15th century until it was taken over from the Spanish by an VAT FREE GOODS. Anglo-Dutch force back in 1704 during with Gibraltar and closed the border. It the War of the Spanish Succession, which was later reopened fully in 1985. also led to a permanent exodus of much of the population. The territory was then The territory is joined by a 1.2km land ceded to Britain under the Treaty of border with Spain, which joins the Utrecht in 1713 and it became an municipality of La Linea de la Concepcion important base for the Royal Navy. on the Spanish side and a 12 km shoreline divides the region into the East Spain did try to reclaim control in 1727 and West side. There are no and also during the Great Siege of administrative divisions although it is Gibraltar between 1779 and 1783 and still divided into seven major Residential today the sovereignty of Gibraltar is a Areas. major bone of contention as Spain continues to assert a claim to the Gibraltar has very few natural resources territory. However, the Gibraltarians and the terrain consists of the 426m high themselves have rejected proposals for Rock of Gibraltar which is made up of Spanish sovereignty, once back in a 1968 Jurassic limestone. The Barbary referendum and again in 2002. Macaques who have made this Rock their home are the only wild monkeys found in January 2013 PAGE 46 Report GIBRALTAR January 2013 PAGE 47 Report GIBRALTAR Europe with around 230 living on the through the VAT-free goods and British The maximum rate along side bank lending. The government upper area of the Rock. The story has it high street chain stores which have imposed on is, howeve,r predicting 60 per cent GDP that if the monkeys ever leave Gibraltar, franchises here. Gibraltar sees around five personal tax is growth, a 50 per cent increase in so will the British. million tourists each year. In 2010, there currently 17 per cent government revenues and some £52m in were 174 cruise ship calls to the Gibraltar and the budget government reserves over the next four Traditionally, the British military port with around 304,000 passengers. announced that by year term. dominated the territory’s economy, the year 2015/16 however, this has diminished over the last Economically, the territory is growing. In this will be reduced An ambitious project in today’s current 20 years and today accounts for just July 2012, Fabian Picardo, the Chief to 15 per cent for climate, however, the recent budget in seven per cent of the economy compared Minister of Gibraltar, announced that every taxpayer. The July 2012 did back some of this plan up to 60 per cent back in the early 1980s. Gibraltar’s GDP grew from £998m to first step means with the reduction or removal of import The port facilities remain however, and £1.05bn for the year 2010/11 and the that as from July duty on a number of retail goods. Most shipping and tourism are key areas of the forecast for 2011/12 is £1.137bn whilst by 2012 those electrical goods and computer software territory’s economy base. In recent years 2015 it is expected to grow to £1.65bn. taxpayers on the will be newly exempt from import duties, the government has pinned its hopes for Allowance Based whilst duties on perfume, cosmetics, the financial future of Gibraltar on the The statutory minimum wage is £5.70 per System will have clothes, jewellery and mobile phones will financial services sector, which has grown hour and average yearly earnings are their rate of tax be halved. This is aimed at making rapidly. £23,576. Unemployment rate is three per reduced to 15 per Gibraltar a more attractive destination for cent. cent. shopping. Today, Gibraltar’s four main economic sectors are: financial services, shipping, At the end of 2011 elections saw the The maximum rate imposed on personal tourism and internet gaming. The first GSLP/Liberal Alliance form the first new tax is currently 17 per cent and the three sectors contribute 30 per cent, 25 government for Gibraltar after 15 years of budget announced that by the year per cent and 30 per cent respectively of GSD administration with a narrow 2015/16 this will be reduced to 15 per the GDP, whilst telecommunications, majority of just over two per cent. The cent for every taxpayer. The first step e-commerce and e-gaming contribute new government promised a new style of means that as from July 2012 those around 15 per cent. government. taxpayers on the Allowance Based System will have their rate of tax reduced to 15 Meanwhile, Gibraltar is a popular port for There has been a reported slowdown in per cent. This rate is based on the first tourist cruise ships and also attracts many consumer spending which has affected £4,000 of taxable income followed by 30 11:30 Page 1 visitors from Spain who travel over the Gibraltar’s tourist trade, shops and per cent for the next £12,000 and 40 per border for day visits eager to browse restaurants. Property spending has fallen cent for the remainder of taxable income. Now you can have your cake and eat it. Report GIBRALTAR Those who earn less than £9,000 are gaming sector. The Gibraltar Government Gala Casino online brand. Today Gala operates 30 exempt from income tax and this will be Lottery was founded after World War II to Gibraltar is the only casinos in the UK and one in Gibraltar, increased to £10,000 by the year 2013. service a loan used to finance the casino in the region 1,566 Coral shops, 170 bingo clubs and construction of new housing for the and originally it two greyhound stadiums. Under the future plans taxpayers who population that had been evacuated. was situated next receive between £9,000 and £19,500 will to the Rock Hotel Gala Casino Gibraltar is the only casino in receive enhanced tax relief to smooth tax The first draw was held in October 1947. but later relocated the region and originally it was situated liability disparity between tax paying and Today this game consists of 24 draws per in 2009 to one of next to the Rock Hotel but later relocated tax exempt earners. All disabled working year of which 21 are regular bi-weekly the two marinas in in 2009 to one of the two marinas in people will be exempt from taxation. draws with tickets costing £10 (divided Gibraltar called Gibraltar called Ocean Village which is a into shares of £1 each). First prize for Ocean Village modern and stylish area housing retail In January 2011 the Corporate Tax was set regular draws is £100,000 and 20,000 which is a modern and entertainment. at 10 per cent for Resident Companies tickets are issued for each draw with 23 and stylish area and 20 per cent for Utility Companies winning numbers drawn. housing retail and Originally when it opened back in 1960s which was expected to see huge changes. entertainment. investors thought the casino would However there has been little evidence of The other three draws are special tickets develop the Rock into the new the expected influx of companies seeking produced in the summer, at Christmas playground for the rich and lure gamblers to use the low tax structure that Gibraltar and for the Three Kings (January 6th) away from Monte Carlo and Nice. At the can now facilitate. where prizes are usually much higher. time it cost £500,000 to build and housed roulette and baccarat. The casino was From July 2012 there was also an Meanwhile the casino is operated by Gala located in a disused fort built into the increased discount of 10 per cent for early Bingo. This company was formed in 1997 Rock and was purchased by Gala in 2000.
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