By Jonathan Garcia, Partner, ISOLAS LLP

Gibraltar has never shied away became the first jurisdiction in the world to regulate Distributed Ledger Technology (DLT).

That early move earned it a reputation as a jurisdiction willing to embrace innovation while ensuring guardrails were in place. Today, Gibraltar is pushing the frontier once again. The government has announced plans for a groundbreaking regulatory framework that will govern the digital clearing and settlement of virtual asset derivatives.

This is no small step. Clearing and settlement sit at the very heart of financial markets. Traditionally, central counterparties play this role, reducing systemic risk and ensuring that trades between buyers and sellers are executed and finalised without dispute. In the digital asset world, however, this safety net has been largely absent. Most transactions have relied on exchanges, with varying degrees of security and oversight. Gibraltar aims to fill this gap with a framework that brings institutional standards to the digital asset space.

Government and Industry

The new framework, developed in collaboration with the Gibraltar Financial Services Commission (GFSC) and the exchange Bullish, is being positioned as the world’s first dedicated regulatory regime for crypto clearing and settlement. It will provide a roadmap for how risks are managed, how assets are safeguarded, and how settlement finality is guaranteed. Minister for Trade and Industry, The Hon Nigel Feetham MP KC, called it a reflection of Gibraltar’s commitment to ‘responsible innovation.’ Bullish CEO Tom Farley praised the initiative as a model for public–private partnership done right, showing how governments and industry can work hand-in-hand to build trust.

Stablecoins, digital money for a Digital Age

Alongside clearing, stablecoins are becoming essential to the crypto economy. Unlike volatile digital assets, stablecoins are designed to maintain steady value by being pegged to currencies like the US dollar or the Euro. They are the quiet workhorses of the digital market, allowing traders and institutions to move in and out of volatile positions without leaving the blockchain ecosystem.

As of mid 2025, stablecoins represent more than $250 billion in circulation, with the vast majority tied to the US dollar. They act as liquidity bridges – helping traders move seamlessly between assets, powering decentralised finance platforms, and increasingly, handling real-world payments. For consumers in emerging markets, they offer a lifeline against inflation and unstable banking systems. In this sense, stablecoins are more than trading tools; they are becoming instruments of financial inclusion.

GENIUS Act

But with rapid growth comes regulatory attention. Policymakers are concerned about how reserves are managed, whether assets are truly backed one-to-one, and how sudden redemptions could destabilise financial markets. This has sparked a wave of new rules around the world. In the United States, the GENIUS Act was passed in July 2025, requiring stablecoins to be fully backed with liquid assets and subject to regular audits. In Europe, the MiCA regulation has brought both domestic and foreign stablecoin issuers under strict oversight. Hong Kong and Singapore are rolling out similar requirements. The message is consistent: stablecoins can enable innovation, but they must also guarantee transparency and trust.

Why Gibraltar’s move matters

So why does Gibraltar’s clearing framework matter in the context of stablecoins? Because it positions the territory at the sweet spot of two global trends. On one side, it is building world-first infrastructure for clearing and settlement in crypto markets.

On the other, it is aligning itself with the new wave of regulation around stablecoins, which are quickly becoming the backbone of digital payments and liquidity. Few jurisdictions have managed to get ahead on both fronts simultaneously.

Together, these initiatives create a powerful value proposition. Institutions looking for safe, well-regulated entry points into crypto will find Gibraltar ready. Investors will see a jurisdiction that balances innovation with oversight. And firms will discover an ecosystem designed for resilience as well as growth. For a small territory, the impact could be outsized, positioning Gibraltar as a natural hub for digital asset activity in Europe and beyond.

A glimpse of the future

The potential applications are vast. Imagine a future where tokenised dollars move across borders in seconds, clearing and settlement happen instantly under Gibraltar’s new regime, and derivatives are managed with the same rigour as traditional finance. Stablecoins could fuel global trade, while digital clearing ensures the system is safe, efficient, and scalable. This is not just speculation – it is the direction markets are already moving. Gibraltar’s role is to make sure the infrastructure is ready when the demand fully arrives.

By marrying stablecoins with digital clearing, Gibraltar is not only keeping pace with global change – it is leading it. Once again, the Rock is proving that being small on the map does not mean being small in vision. In the fast-evolving world of digital assets, Gibraltar is showing how to build a future that is both innovative and secure.

The post Gibraltar’s next big move for Crypto Clearing & Stablecoins appeared first on Gibraltar International Magazine.

By Joseph Gomez, Consultant and Sebastian Triay, Senior Associate, Private Client Team, Triay Lawyers

Gibraltar offers a compelling seeking tax efficiency, lifestyle benefits, and a stable jurisdiction. With its Category 2 and High Executive Possessing Specialist Skills (HEPSS) statuses, Gibraltar provides a robust framework for wealth preservation and personal relocation.

For investors

Gibraltar is a tax efficient jurisdiction ideal for wealth growth and protection. It imposes no tax on capital gains, dividends, interest, or wealth, making it attractive for those with diversified portfolios or passive income streams.

Category 2 Status is designed for individuals with a minimum net worth of £2 million. It caps income tax liability between £39,940.00 and £44,740.00, regardless of global income. Investors can continue operating businesses outside Gibraltar without local tax implications and may even structure operations through Gibraltar based entities under certain conditions.

Key benefits:

• No tax on investment income;
• No inheritance or succession tax;
• British legal framework and financial stability;
• Appealing lifestyle for family relocation.

For family offices

Gibraltar is a strategic base for multi-generational wealth planning. Its absence of inheritance, wealth, and capital gains taxes allows family offices to preserve and transfer wealth efficiently. The jurisdiction supports trusts, foundations, and corporate and partnership structures (including cellular structures) that align with global estate planning strategies.

Principals of family offices can apply for Category 2 status, securing personal tax efficiency while managing global assets. Gibraltar’s legal system, based on English common law, ensures privacy, asset protection, and regulatory clarity.

Key benefits:

• Tax-efficient wealth transfer;
• Legal certainty and confidentiality;
• Flexible structuring options for global holdings;
• Lifestyle appeal for family relocation.

For relocation consultants

Gibraltar offers a clear and efficient pathway to residency. The Category 2 and HEPSS statuses have well defined financial and accommodation requirements. The jurisdiction is English-speaking, safe, and offers a Mediterranean lifestyle ideal for clients seeking both tax benefits and quality of life.

HEPSS status is tailored for executives earning over £160,000.00 annually and possessing specialist skills that contribute to Gibraltar’s economy. It limits tax liability to £39,940.00 and requires local employment.

Key benefits for clients:

• Fast-track residency process;
• No wealth, capital gains, or inheritance taxes;
• Business-friendly environment;
• High standard of living and connectivity.

Residency requirements

To qualify for Category 2 or HEPSS, applicants must:

• Secure approved residential accommodation in Gibraltar;
• Provide two professional references (one from an international bank);
• Hold private comprehensive health insurance;
• Submit proof of net worth (£2M for Category 2) or income (£160K+ for HEPSS);
• Provide a valid passport and CV.

Once approved, applicants must apply for a Civilian Registration Card.

HEPSS applicants must not have lived or worked in Gibraltar in the 36 months prior to applying.

Application process

• Application fee currently £1,233.00 for either Category 2 or HEPSS;
• Category 2 applicants once the status is granted are required to deposit an amount equal to the maximum tax liability, refundable when the status is ended;
• Certificates are issued indefinitely, subject to continued compliance.

Summary of UK-EU Treaty negotiations regarding Gibraltar (September 2025)

On 11 June 2025, the UK, EU, Spain, and Gibraltar reached a political agreement on the core aspects of a future treaty governing Gibraltar’s post-Brexit relationship with the EU. Key elements include removal of border checks between Gibraltar and Spain, dual border checks at Gibraltar’s airport and port, a customs union between Gibraltar and the EU, and cooperation on law enforcement, taxation, environmental standards, and frontier workers’ rights.

• Disappearance of the physical land border with Spain;
• Immigration control will be relocated to Gibraltar’s International airport;
• Gibraltar will not join the Schengen Area, but Schengen rules will apply to non- 16 Gibraltar International www.gibraltarinternational.com residents entering via Gibraltar;

Negotiators aim to finalise the legal text by October 2025, with ratification expected by Christmas and implementation in early 2026.

The treaty does not affect the sovereignty of Gibraltar. A new bilateral cooperation agreement between the United Kingdom and Spain was signed in September 2025, focusing on economic growth and migration, building on the Gibraltar deal.

Conclusion

Gibraltar offers a rare combination of tax efficiency, legal stability, and lifestyle appeal. Whether you’re an investor, a family office, planning for future generations, or a consultant guiding clients through relocation, Gibraltar provides a robust framework for strategic residency.

By securing Category 2 or HEPSS status, individuals can achieve limited income tax exposure and a secure and attractive base for global operations. Gibraltar isn’t just a geographical location it’s a lifestyle and business hub for forward thinking individuals and families.

The post A strategic opportunity for Gibraltar residency and tax planning appeared first on Gibraltar International Magazine.

By Erika Pozo, Director, Kroll (Gibraltar) Limited

In an evolving regulatory landscape, insurance firms must be prepared not only for growth and resilience… but also for a ‘final chapter’ of a book of business, ‘The Solvent Exit’.

A solvent exit in the industry doesn’t always mean a full exit from the market. It can involve a structured withdrawal from a particular line of business, undertaken to release trapped capital and redeploy resources into more profitable or strategic areas. In either case, whether leaving the market entirely or streamlining operations, the regulator now expects insurers to demonstrate that the process can be carried out in an orderly, well governed, and policyholder focused manner.

Thanks to the Gibraltar Financial Services Commission’s (GFSC) a new Guidance Note on Solvent Exit Planning for Insurers, published on 13 June 2025, outlines the expectations for insurers to plan and execute an orderly wind-down while remaining financially solvent.

From the PRA to the Rock

Solvent exit planning has its roots in UK regulatory policy. Back in 2021, the Prudential Regulation Authority (PRA) introduced requirements for solvent exit planning, with its final policy (PS20/24, SS11/24) being issued on 18 December 2024. The rationale was straightforward: if an insurer decides to leave the market while solvent, it should be able to do so orderly, responsibly, and without destabilising policyholder protection mechanisms. The PRA’s framework placed exit risk on the same footing as entry and operational risks.

Given Gibraltar’s close regulatory ties to the UK through the Gibraltar Authorisation Regime (GAR), it was only a matter of time before the GFSC followed suit. The June 2025 guidance now makes solvent exit planning a standard expectation for all Gibraltar insurers.

Core requirements – The Solvent Exit Analysis

The GFSC’s guidance lays out a structured, technical approach. At its heart, it requires all insurers to build credible, proportionate exit strategies. In meeting the expectations within the Guidance Note, firms must produce a Solvent Exit Analysis (SEA) as part of its BAU activities, which outlines and sets out a firm’s run-off / exit options, regardless of how unlikely or distant the prospect of an exit may seem.

The SEA is not a box-ticking exercise. Every insurer authorised in Gibraltar must maintain one, with the level of detail tailored to the firm’s size and complexity. It must be refreshed at least every three years, or sooner if the risk profile changes. While it can be integrated into existing governance tools such as the Own Risk Solvency Assessment (ORSA), the GFSC is clear that it must stand up as a practical roadmap for an orderly exit.

Insurers are expected to map out credible exit routes, from policy run-off to portfolio transfer, restructuring or sale, and must spell out the actions, resources, and timelines needed. Each analysis must also identify indicators and trigger points that signal when it is time to act, helping firms avoid leaving it too late.

Potential barriers, whether market-wide or firm-specific, must be considered in detail. These range from gaps in policyholder data and operational dependencies to external risks such as market volatility or stakeholder reaction. Resource planning is critical: firms must not only demonstrate they have sufficient capital and liquidity to execute an exit but also allow for added costs such as redundancy payments, advisory fees, or asset write-downs.

Clear governance and accountability are nonnegotiable. A senior regulated individual must oversee the SEA, supported by transparent decision making and robust assurance.

For Gibraltar, this move signals a proactive stance: embedding exit preparedness into day to day business to safeguard policyholders and maintain confidence in its insurance market.

SEEP: Turning Exit Planning into Execution

Unlike the SEA, which is a standing requirement, the Solvent Exit Execution Plan (SEEP) is only triggered when an insurer’s exit from the market becomes a reasonable prospect.

The SEEP translates theory into action. It is designed to show, in real time, how an insurer will implement an orderly and solvent exit, whether through run-off, transfer, sale, or restructuring. Once triggered, the SEEP must be delivered to the GFSC within a specified period and updated as circumstances evolve.

Key elements of the SEEP include a detailed timeline of actions, allocation of responsibilities, resource mobilisation, and communication strategies to manage policyholders, staff, creditors, and counterparties. The SEEP also addresses the barriers identified in the SEA, showing how they will be overcome in practice. With a regulated individual accountable for execution, ensuring governance remains clear at any critical juncture.

For Gibraltar insurers, the SEEP requirement underscores the regulatory message: planning alone is not enough. Firms must be ready to act decisively to protect policyholders and market stability if an exit becomes inevitable.

What matters?

For Gibraltar as a jurisdiction, solvent exit planning strengthens alignment with the UK PRA and reinforces the credibility of GAR. Boards are now expected to take ownership of exit strategies, pushing exit planning firmly into the boardroom agenda rather than leaving it as an operational afterthought. The message is clear, exit planning is now a core regulatory expectation, designed to protect policyholders, preserve market confidence and prevent disorderly failures in Gibraltar’s insurance sector.

The post Shutting the door safely, a regulatory push for exit plans appeared first on Gibraltar International Magazine.

Tony Alan reports on the latest updates

This year’s annual KPMG Gibraltar eSummit was held with exceptional timing on Thursday 12th June, the day after the announcement that the UK and and EU had agreed the core terms of a treaty in respect of Gibraltar.

It meant that delegates at the event were among the first to hear what this meant for Gibraltar – and the eGaming industry in particular – from Chief Minister Fabian Picardo who rearranged his schedule to make a surprise appearance and talk directly to the capacity audience at the Sunborn Yacht Hotel.

Border fluidity

Declaring that the sovereignty of Gibraltar had not “In any way been compromised”, the Chief Minister said the agreement offered “complete fluidity across the frontier”, for the two key elements that move across frontiers: people and goods.

The agreement achieved what the government had set out to do, he said: “To give you and your industry the ability to have people live on the other side of the frontier and come in and out of Gibraltar every day without having so much as to flash an ID card, let alone a passport.

Brexit chaos

“To give you the ability to recruit and retain the people you need not just to stay the way you are but to make you more successful in the future. To grow the business that you do in Gibraltar and grow the type of business we
can do in Gibraltar”.

After the chaos of Brexit, he added, he hoped delegates would see the terms of the agreement as “a hugely positive agreement” for Gibraltar, the region and, in particular, the gaming industry.

Tier 1 jurisdiction

Attendees at the event, which draws Gaming professionals from across Europe, had already heard from Trade and Justice Minister the Hon Nigel Feetham who was equally enthusiastic about terms of the Treaty and how it would help support Gibraltar’s position as a Tier 1 jurisdiction for the sector.

Explaining that no sector was “more important in terms of its economic contribution to Gibraltar than the gambling sector,” he said the agreement would provide stability and a “safeguard for our collective future”.

Gambling Act

Minister Feetham also said that the long- awaited update to the Gambling Act could now be progressed and indicated that Gibraltar was prepared to consider accepting market leading
operators in crypto gambling who wanted to move into the regulated space.

“As a jurisdiction, we must embrace growth in areas where technology is shaping the global landscape,” he added. “We simply cannot afford to be left behind”.

Gibraltar Gambling Commissioner Andrew Lyman reiterated that the new Gambling Act would address changes in the operational models of eGaming businesses and bring associated services such as marketing into scope. This would give greater flexibility and scope for multi-jurisdictional gaming operators and updated powers to the Gibraltar Gambling Commission to ensure Gibraltar maintained its strong reputation as a responsible and respected regulated territory.

Crypto currencies

Elsewhere at the conference, the Hon. Albert Isola KCB MP moderated a session on the use of crypto currencies in the sector while industry consultant Simon French reflected on capital market trends over the last 20 years followed by sessions on M&A activity from both operator and legal perspectives. Robin Chhabra from Tekkorp Capital hosted a discussion on opportunities in the Latin American market and Dan Waugh from Regulus Partners explored possible regulatory threats to the UK industry.

It was important for the industry to address this, he said, and reframe conversations. “Operators must focus and champion the best interests of their customers,” he warned, “Both in terms of enjoyment and harm prevention. The consumer is all too often by-passed in a debate that focuses instead on harm, taxation, jobs and the black market.”

ESG

A further panel session looked at the question of whether Environment, Social and Governance (ESG) is itself sustainable with various operators talking through the different activities their businesses were working on in this space. The panellists recognised that ESG initiatives were important not only to customers and shareholders, but also in attracting new talent to the sector.

With a simultaneous programme of short power presentations in the side rooms touching on many legal and regulatory points of interest, delegates had the opportunity to learn lessons from real life recent examples before re-joining the main room at the end of the day to hear reflections from some of the key operators in the gaming industry. The discussion covered a wide range of topics including cyber risks, the opportunities and threats of AI, regulation, industry collaboration and the value of diverse thinking.

Conclusion

Summing up at the end of the day Will Hawkley, KPMG Global Head of Leisure and Hospitality, said, “The KPMG Gibraltar eSummit has once again provided a fantastic opportunity for the industry both in Gibraltar and the wider world to take stock of the market, and the opportunities and threats it faces.

“We were delighted to have both the Chief Minister Fabian Picardo and the Hon Nigel Feetham MP join us on the day, reflecting the importance of the sector to Gibraltar’s economy. We also thank our other expert speakers for their time and reflections which are so valuable to understanding the future direction of the gaming industry.

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By Craig Doyle, Director – Business Risk Services, Grant Thornton Gibraltar

In entrepreneurial environments, high importance is given to providing employees with the autonomy to enable them to grow and develop business without constraint. When the balance between autonomy and oversight goes wrong however, it can have disastrous consequences.

There have been recent cases where a lack of good governance over their businesses have resulted in substantial losses for investors/shareholders. At the heart of the issue has been a lack of oversight and control. It is essential to make sure that those managing a business have their objectives aligned with those of its owner(s), that there are good controls over money exiting the business and generating the right culture in the firm. Without good governance the consequences can include management fraud, serious breaches of legal/regulatory requirements, and decisions being made against the interest of those with significant ownership.

A robust governance framework

By the time the importance of having a robust governance framework is realised, it can be too late and incredibly costly (in terms of money, time and reputation) to rectify. There are some common underlying causes, and it is important to get them right.

Board representation

When a significant investment is made in a company, it is important to ensure that there is adequate and effective board representation so that good decisions are made, and that they are aligned to the interest of the owners. Without this representation there can be both a lack of oversight to identify problems in the business, or even an inability to prevent decisions being made that are against the interest of some shareholders. It also needs to be clear which decisions need to be escalated to the board for approval, so that no material decisions fly under the radar. Bear in mind that good relations between an investor and a company’s management at the time of a transaction may not be the same in a years’ time.

Control over cash

The ‘fraud triangle’ states that individuals are motivated to commit fraud when three elements come together:

1. There is a perceived pressure (e.g. financial stress, or need to meet targets)
2. There is some way to rationalise the fraud (e.g. resentment, or view that there is no actual harm done)
3. There is a perceived opportunity (e.g. weak controls, inadequate oversight)

A company cannot always control the external pressures affecting an employee or whether that person can rationalise committing a fraud, however they can ensure that there are controls in place to restrict the ‘perceived opportunity’. There is still a surprising amount of firms without basic controls over how cash exits the business, for example: no requirements for dual signatories on bank accounts, lack of clarity over approval levels for large payments, no sign off procedures for expenses, not performing due diligence on suppliers (even major ones) – to name but a few.

Fraud is far more common than many people perceive, and it can often happen right in front of us if we do not have a sceptical outlook and the right controls in place.

Good governance is often viewed as a cost or an administrative burden, but in reality, it is an investment in the long-term success and stability of a business

Challenge and oversight

It is essential to have robust oversight over a business, and to challenge both the decisions being made and company performance. Poor performance is always likely to be scrutinised in depth but there may be commercial pressure to accept positive numbers without such scrutiny. These also need to be challenged and understood – if an area of a business is outperforming all others, why is this the case? It could simply be that Good governance is often viewed as a cost or an administrative burden, but in reality, it is an investment in the long-term success and stability of a business management of a certain area are doing an incredible job, but could it be an indication that there is something happening within the business which needs further investigation. It is critical to understand the reality behind trends and anomalies.

Managing risk

Managing risk is often perceived as only being about the downside and preventing growth; this is a misconception. When done properly, risk management is a strategic asset that drives business performance. The most important part of managing risk is agreeing the level the business is willing to take (the risk appetite) and making sure that everyone is aligned and working towards this. An aggressive stance can be taken, but it is important that this is agreed and understood by the board. Once it is defined, then it can be monitored, ensuring that everyone is aware if anything happens outside that agreed risk appetite. Without this, the board may misunderstand what risk is being taken, and then get a nasty shock further down the line.

Internal audit

Independent internal audit allows stakeholders to understand how mature the control environment is within a company, and where it is taking significant risks that may affect it achieving its objectives. It is an important foundation upon which a business and its owners can rely, and it helps them ensure effective and efficient operations. It is also a deterrent against behaviour not in the interest of the shareholders.

It is often believed by companies that key processes they run are well controlled. Upon closer review, the standard process can indeed be very solid; however, for various reasons there can be exceptions which bypass it (sometimes unknown to senior management). It can be in these cases where issues arise, and lead to errors (either accidental or intentional) that do not get picked up. Internal audit is a great mechanism for companies to highlight these exceptions, help to implement controls around them to prevent issues occurring, or find any issues that have occurred (before they are identified by 3rd parties and become harder to manage).

Conclusion

The areas outlined represent some of the key considerations when establishing effective governance, oversight, and risk management practices. Organisations may wish to review their current arrangements to ensure they remain appropriate and proportionate to their objectives and risk profile.

Good governance is often viewed as a cost or an administrative burden, but in reality, it is an investment in the long-term success and stability of a business. Without it, even the most promising ventures can falter (sometimes irreversibly) under the weight of poor decisions, unchecked risks, or behaviour that goes unchallenged. By the time shortcomings are exposed, the damage to reputation, financial performance, and stakeholder confidence can be significant. The question is not whether you can afford to have effective governance and oversight in place, but whether you can afford not to.

The post The importance of having a robust governance framework appeared first on Gibraltar International Magazine.

By Emma Zammitt, Senior Executive, Government of Gibraltar

When the Hon. Nigel Feetham KC MP, Minister for Justice, Trade and Industry took office in 2023, he brought with him a clear vision: to bridge the gap between Gibraltar’s young people and the wide array of careers available to them. From the start, he recognised a persistent challenge. Many students and young adults in Gibraltar were defaulting to familiar professions such as teaching, accountancy, and law, often without a full understanding of the dynamic opportunities in sectors like FinTech, Gaming, Insurance, and other financial services that are thriving in the jurisdiction.

With this in mind, the Connect Hub initiative was launched. A dynamic, ongoing programme designed to help students and young people explore career paths beyond the traditional. Through Connect Hub, the Ministry has aimed to raise awareness, inspire ambition, and equip the next generation with the insights and connections they need to thrive in Gibraltar’s modern economy.

A broader vision for career awareness

A key part of the challenge lies in deeply rooted cultural expectations. In Gibraltar, there has long been a strong emphasis, particularly among families, on pursuing well- known, traditionally “safe” professions. Many parents understandably encourage careers in law, education, accountancy, or positions within the civil service, viewing these roles as stable and respectable paths. While these professions are undeniably important, this mindset can sometimes limit the scope of what young people consider possible for themselves.

Minister Feetham believes it’s time to expand those horizons. “We want our young people to realise just how many doors are open to them,” he said. “Gibraltar’s economy is evolving, and we need to evolve with it. There is a huge demand for talent in sectors many students have never even considered.” Connect Hub provides that platform. From workshops and career days to networking events and industry talks, the initiative brings students face-to-face with professionals in cutting-edge industries. It allows them to ask questions, hear real-life stories, and get a genuine feel for what it’s like to work in sectors such as Marketing, Compliance, Software Development, Blockchain, eGaming, and more.

Highlights of the initiative

Since its inception, Connect Hub has hosted seven events across various different sectors. These have included Insurance, Banking, FinTech, Online Gaming, and Compliance, and have brought together students from local secondary schools, the Gibraltar College, the University of Gibraltar and local students studying abroad.

Some standout events have included:

• Gibraltar Bankers Association – A hands-on workshop introducing students to careers and operations within the banking sector, guided by industry mentors.
• Entain – An interactive session with one of the top international online gaming companies, giving students a behind-the-scenes look at one of Gibraltar’s largest employment sectors and its diverse career paths.
• Bitso & Bullish – Two engaging FinTech events where founders shared their career journeys and offered insights into Crypto Exchanges, Blockchain, and Gibraltar’s role as a regulated hub for Virtual Asset Businesses.
• Gibraltar Association of Compliance Officers – A practical workshop on the importance of compliance and risk management across Gibraltar’s financial services industry, with insights into regulatory frameworks that underpin Gibraltar’s reputation as a well-regulated jurisdiction.

Feedback has been overwhelmingly positive. Parents, who are also encouraged to attend these events, have praised the initiative and students have called it “eye-opening” and “inspiring,” with many expressing a newfound interest in pursuing opportunities they hadn’t previously considered.

A community effort

Minister Feetham is quick to point out that the success of Connect Hub is due in large part to collaboration with local businesses, educators, and government departments all working together to make it happen. Industry partners have welcomed the chance to connect with the next generation of professionals, and many have expressed their willingness to offer internships, mentorships, or even apprenticeships to promising students.

“This is about more than just career guidance,” said the Minister. “It’s about community-building. It’s about ensuring Gibraltar’s young people feel empowered, 10 Gibraltar International www.gibraltarinternational.com included, and ready to contribute to the future of our economy.”

Looking ahead

With more events in the pipeline and plans to expand the initiative further, the Ministry is committed to ensuring Connect Hub remains a cornerstone of youth engagement and career development in Gibraltar. The goal is to embed this kind of exposure and guidance into the educational journey of every student, not as an add-on, but as a core part of how young people prepare for their futures. As the local and global job markets continue to evolve, initiatives like Connect Hub are more important than ever. They remind us that while traditional careers will always have their place, the world is changing, and Gibraltar’s youth must be equipped to change.

The post How the Connect Hub Initiative is opening doors for Gibraltar’s younger generation appeared first on Gibraltar International Magazine.

By Lynette Chaudhary, Tax Director, Sovereign Trust (Gibraltar) Limited

The new legislation (UK Finance Act 2025) which came into effect on the 6th April, is radically overhauling and modernising the UK’s tax system, significantly impacting the UK tax position for individuals moving from, or to, the UK.

This regime change may benefit Gibraltar residents, other non-UK residents, and those who could become UK resident in the future.

Liability to UK Inheritance Tax (IHT) on non-UK assets now determined by a new concept of ‘Long Term UK Resident’, replacing ‘Domicile’

IHT is a tax on transfers of value from an individual’s estate. It is principally charged on transfers on death but is also charged on transfers made within 7 years of death, some other lifetime transfers and on trusts within the UK’s relevant property regime.

Long-Term UK Resident (LTR)

Up until the 5th April 2025, the general law concept of domicile was fundamental to the scope of IHT, with UK domiciled individuals being liable to IHT on their worldwide assets, and non-UK domiciled individuals being liable to IHT on their UK sited assets only.

However, from the 6th April, the IHT, domicile has been replaced by the concept of Long-Term UK Resident (LTR).

• An individual is a LTR if they were UK resident for 10 or more of the previous 20 UK tax years.
• LTRs are liable to IHT on their worldwide assets.
• Non-LTRs are liable to IHT on their UK sited assets only

The general rule is that a LTR will retain this status (an IHT ‘tail’) until they have been non-UK resident for 10 consecutive UK tax years (i.e. not a LTR from the 11th UK tax year). A shorter tail applies for those who were UK resident for 10-19 UK tax years and different rules apply for individuals under the age of 20.

This makes it much easier for UK expats’ non-UK assets to fall outside the scope of IHT. Previously, UK domiciled individuals who left the UK may have struggled, for various reasons, to displace their UK domicile of origin with a non-UK domicile of choice, and if so, would have remained liable to IHT on a worldwide basis. Now, once non-UK resident for 10 consecutive UK tax years, their non-UK assets fall outside the scope of IHT.

IHT is levied at a 40% rate after the nilrate band and available exemptions/reliefs, so narrowing its scope from worldwide to UK sited assets could result in considerable succession tax savings.

The tax position in the individual’s country of residence and country of asset location should also be considered. For Gibraltar resident, non-LTRs, with all assets located in Gibraltar, assets can be transferred free of IHT (in UK and Gibraltar).

How this affects trusts needs to be considered separately, but it’s fundamental to note that assets in trust may (controversially) come in and out of the IHT regime based on the settlor’s residence status at the time of an event, which will be critical for trustees to monitor.

Abolition of the remittance basis and replacement with a UK tax exemption FIG

Additionally, from the 6th April, the UK’s remittance basis of taxation for non-UK domiciled individuals has been abolished and replaced with a new time-limited Foreign Income and Gains (FIG) regime linked to the number of years of UK residency.

This is a valuable regime for non-UK resident individuals considering moving to the UK.

This FIG regime is open to anyone (including those who would otherwise have been considered UK domiciled) who meets the Qualifying New Resident (QNR) conditions. This generally entails being UK resident after a period of 10 consecutive UK tax years of non-UK residence.

Crucially, QNRs will not be taxed in the UK on their qualifying FIG for the first 4 tax years of UK residency, even if the FIG is remitted to the UK.

This could be very beneficial for Gibraltar residents who have been non-UK resident for over 10 UK tax years and decide to move to the UK for a period (e.g. because of an elderly relative or child attending university).

Qualifying FIG includes non-UK: dividends; interest; pension income; property income; trust income; gains accruing on the disposal of non-UK assets etc. Specific types of income/gain should be checked for qualifying status.

Following this 4-year period, all UK residents are taxable in the UK on their worldwide income/gains.

UK’s Statutory Residence Test (SRT)

Under this regime, residency is determined using the SRT, the UK’s first formal tax residency test which took effect in 2013.

Following these 6th April changes, the SRT has a much broader application in assessing an individual’s UK tax position, making it even more important for internationally mobile individuals to understand their SRT position and monitor it on an annual basis. Up to date advice, specific to individual circumstances, could be crucial.

The post ‘Residency’ not ‘domicile’, modernising the UK tax system appeared first on Gibraltar International Magazine.

By Julian Sheriff, Head of Operations, GibFibre

Data is the engine that drives businesses forward, but to get the most out of the data they generate and hold, organisations need to ensure they are on top of data management.

This covers everything from data gathering, cleansing and analysis to more complicated aspects such as data sovereignty and data residency.

What is data residency?

Simply put, data residency is where data is stored. This could be a physical location, such as hard drives in an office, or it could be a virtual solution such as the cloud.

It is a key consideration for businesses that need to adhere to strict data privacy rules and regulations, especially those with a footprint in several jurisdictions across the world.

Data residency also covers data mapping, which helps organisations understand what data they hold, where it is located and the rules and laws in place in each location.

A quick word on data sovereignty

Data residency and data sovereignty are often used interchangeably but there are subtle yet important differences between them.

With data sovereignty, it’s all about the specific legal frameworks governing data while residency is mostly about the geographical location of the data.

Why businesses need to think carefully about data residency

The primary focus of data residency is to be compliant with data protection laws and regulations in the jurisdictions where the business operates and the data is held.

Other considerations include security and ensuring data is protected, and that the right levels of access are in place.

Ultimately, it comes down to ensuring that data is stored in the right geographic areas and is compliant with the laws, customs and general expectations of those jurisdictions.

The risks of getting it wrong

Get data residency wrong and you can find that you have unintentionally broken data laws, which can lead to some pretty heavy penalties.

It can also leave an organisation and its data vulnerable to a cyberattack, the impact of which can be severe and go beyond financial damage to reputational harm and, again, legal repercussions.

What are the upsides to getting it right?

Get data residency right and there are plenty of upsides to take advantage of.

This includes having more control over where data is stored and accessed, resulting in better data management practices.

Consumers and clients feel more confident knowing that data is being stored in line with requirements, and that the necessary security protections are in place.

Most importantly, it means data is being stored compliantly and in line with the rules and regulations of the specific countries it is being stored within, mitigating the risk of breaking the law.

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By James Lasry, Head of Financial Services and Miriam Bayles, Paralegal, Financial Services, Hassans

Gibraltar has established itself as a dynamic and innovative financial centre, renowned for its robust regulatory framework and its strategic geographical location. This jurisdiction has consistently demonstrated its commitment to enhancing its financial services landscape and in particular its funds and DLT frameworks. One of the most significant developments in this regard in recent years was the introduction of Protected Cell Limited Partnerships (PCLPs), a flexible structure that offers enhanced protection for both investors and fund managers.

The establishment of PCLPs in Gibraltar, formed a part of the progressive legislative measures that Gibraltar took to bolster the funds industry with the enactment of the Limited Partnerships Act 2021 and the Protected Cell Limited Partnerships Act 2021. These Acts were the result of collaborative efforts between Her Majesty’s Government of Gibraltar, the Gibraltar Funds and Investments Association, and the Gibraltar Financial Services Commission with expert guidance from legal professionals. This new statutory framework enhanced the existing legislation by providing a solid foundation upon which Limited Partnerships (LPs) could operate as well as innovatively incorporating the concept of protected cells within those partnerships.

PCLPs are unique

PCLPs combine the traditional features of LPs with the protective benefits of segregated cells as are seen in Protected Cell Companies (PCCs). A PCLP allows for the creation of multiple cells within a single LP, each with its own distinct assets and liabilities. This structure differs from traditional LPs where assets and liabilities are pooled, and PCCs which, whilst offering segregation, do not provide the tax transparency benefits inherent in partnerships. PCLPs are therefore unique in the sense that they are able to provide statutory segregation of assets and liabilities between cells, tax transparency, as well as enhanced investor protection and operational flexibility.

The availability of PCLPs presents several compelling advantages in fund structuring. Fund managers are able to implement multiple investment strategies within a single legal entity, each housed in its own protected cell. This arrangement streamlines administrative processes and reduces costs associated with establishing separate entities for different strategies. As funds structured as PCLPs maintain the tax transparency characteristics of LPs too, income is therefore taxed at the investor level, aligning the economic objectives of many investment structures.

Funds industry and investors

The successful introduction of PCLPs has been a testament to the collaborative efforts between the Gibraltar Government, the Regulator and industry bodies. This partnership ensured that the legislation was meticulously crafted with the funds industry and investors in mind whilst maintaining the integrity and robustness of Gibraltar’s regulatory and legislative environment. The work that went into advancing the framework has been recognised by stakeholders as highlighting Gibraltar’s ongoing commitment and proactive approach to providing innovative and viable legislative solutions to the local financial services sector. The Gibraltar PCLP is an outstanding addition to Gibraltar’s range of fund products. Gibraltar’s size and proactivity have allowed it to come up with a piece of legislation that the vast majority of fund jurisdictions have yet to acquire.

It came as no coincidence that the first PCLP launched in Gibraltar, almost a year after the PCLP Act came into force was a crypto fund; crypto funds operate in an environment that is defined by rapid innovation, significant market volatility and evolving and uncertain regulatory frameworks. They therefore carry unique risks. For these funds, PCLPs offer an equally unique structure with more effective risk management and flexibility:

1. Risk Management

Each cell functions as a separate legal entity, meaning any unexpected losses or liabilities, whether from market swings or security breaches, are contained within the individual cell and do not impact the entire fund.

2. Operational Flexibility

Crypto investment strategies can vary widely and may range from direct asset holdings to lending or staking activities. Within the PCLP framework, funds can operate multiple specialised cells under one umbrella which reduces administrative workload and enables fund managers to tailor operational strategies to the specific requirements of each cell’s activity.

3. Enhanced Investor Protection

If one of the fund’s cells or strategies encounters difficulties or losses, investors in other cells remain insulated from these issues. This builds investor confidence in a market where unexpected disruptions are rampant.

4. Tax Transparency

The economic and tax environment associated with crypto assets is often complex. As PCLPs are tax transparent, gains and losses pass directly through investors, simplifying tax reporting and providing further clarity.

5. Regulatory Compliance

The adaptable nature of PCLPs is increasingly valuable in the crypto sector. Fund managers are able to address new compliance requirements on a cell-by-cell basis in response to changing market conditions or legal frameworks rather than restructuring the entire fund.

PCLPs are likewise ideal for less liquid asset classes such as real estate, private equity, venture capital and token projects as they allow each investment strategy to be compartmentalised into separate cells. As in crypto funds, this segregation means that the risks, liabilities and performance of one cell does not impact the others which is crucial when assets are not easily traded or quickly liquidated. This adds a more nuanced approach for fund managers where each cell can be designed with more operational flexibility. The tax transparency that is afforded through a partnership structure is also especially important for less liquid asset classes where cash flows are irregular, and risks can vary significantly. This allows investors to manage tax implications and risk more effectively as profits and losses pass directly to investors.

The continued use of PCLPs is expected to have a long-term impact on Gibraltar’s funds industry. By offering a flexible and protective structure, PCLPs remain an attractive and ideal option for fund managers and investors considering Gibraltar as a domicile and presents an opportunity for those seeking a jurisdiction that supports innovative investment vehicles. It is a testament that Gibraltar remains committed to enhancing and refining its legislation and maintaining its reputation and position at the forefront of the global funds industry.

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By Mark Maloney, Managing Director, Gibraltar Asset Management

Last year was a good year for shares, with the start and middle period faring better than the end period, as confidence that inflation and interest rates were heading decisively lower began to diminish. But with the re-election of Donald Trump and the direction of travel for interest rates still remaining down, we see stock markets returning close to their longterm averages of 10% over the next twelve months. We continue to favour perceived beneficiaries of this political and economic environment such as energy, financials, utilities and real estate.

The stock market remains at overweight

We expect the economy to continue expanding in 2025, remaining on a growth path that is supported by low unemployment, strong corporate earnings and an economy bolstered by above-trend government spending. The key, as usual, will be consumer spending, which accounts for approximately two-thirds of overall GDP. At this juncture, the consumer is bolstered by low unemployment, standing at just 4.3%. New academic research indicates that full employment is consistent with a 4.3% unemployment rate. Inflation is steadily falling towards its 2% target and interest rates are set to fall further. If rates do continue to head lower on mild inflation news, while earnings growth accelerates, then this new bull market should have more years to run.

Popular Wall Street wisdom states that the best outcome in Washington is gridlock. Yet the US market has outperformed in years in which one party controls presidency, House, and Senate. And the market does best when the GOP is in control. Interestingly, the US stock market is not looking overly expensive, even at these elevated levels. The current forward P/E ratio for the S&P 500 is 21 times, within the normal range of 15-24x. The ratio of the S&P 500 price to an ounce of gold is now 2.3, within the historical range of 1 to 3.

VIX

The VIX Volatility Index tended to trade in the 20 or above range for most of the 2020-22 period, as investors navigated the pandemic, the supply-chain crisis, and spiking inflation. Outside of a spike to the high 30s in August, the VIX has been below 20 for most of 2024. The index is currently 16. The reduction in VIX is consistent with bull markets, which tend to be periods of reduced market volatility.

When we examine the risks, we note that some of the old risks are fading away. These include supply chain, inflation, Russia, recession, and restrictive central bank policy. A lingering concern is inflation, as eliminating the final percentage point of inflation on the way to the 2% target is always challenging. China is a risk from both an economic and geopolitical perspective. The economic risk occurs if this massive market remains stuck in the malaise that has existed since the zerotolerance Covid lockdowns. The geopolitical risk occurs if the government decides to distract from economic struggles by attacking Taiwan. Finally, investor complacency and the absence of fear are a risk. When the market is complacent, VIX is low, and investors are fully invested, an extraneous event – geopolitical or economic – can spur a pendulum swing to fear and panic, and a market selloff. On balance, the current level of the VIX suggests that investors are comfortable with the balance of risk and reward in the market.

Tritax Big Box REIT plc

This investment trust, listed on the LSE (BBOX.L), is a leading investor in UK largescale logistics assets (“Big Box”). These are a critical component of modern supply chains. As such, Tritax offers a compelling investment case for those seeking exposure to the growth in e-commerce and logistics while benefiting from stable, inflation-linked income. Its high-quality portfolio, long leases, and strong tenant base provide a balance of growth and security, making it a potential cornerstone for income-focused and longterm investors.

Its portfolio is valued at £6.4bn, making it the largest such UK enterprise of its kind. This scale offers the potential for lower cost of capital, improved share liquidity and an enhanced credit rating and puts the trust on the cusp of FTSE 100 inclusion. The assets are typically modern, in prime locations and fully let on long leases (an average of 14 years) to institutional-grade tenants with upward-only rent reviews. Customers include some of the biggest names in business such as Amazon, Morrisons, Co-op, B&Q, Tesco, Argos, Ocado, M&S and Currys. The company’s portfolio includes state-of-the-art logistics facilities located near key transport networks, such as motorways, ports, and urban areas, which are critical for last-mile delivery. These prime assets are difficult to replicate, providing competitive advantages.

The continued rise of online shopping

The structural drivers of demand for “Big Box” assets are compelling and, combined with a significant element of inflation linkage, should continue to provide scope for rental growth. The business’s exceptional portfolio is well positioned to take advantage of the changing dynamics in the logistics market, in particular technical innovation in the form of e-commerce. The continued rise of online shopping drives demand for logistics and warehousing facilities. Companies like Amazon, Tesco, and Ocado rely on such strategically located distribution hubs.

Modern, strategically located Big Boxes can provide companies with the nucleus for effective distribution to other parts of their supply chain. By centralising previously dispersed distribution into fewer, larger facilities, occupiers can optimise staff and stock management, capture economies of scale, reduce costs and improve delivery times. Tritax is committed to Environmental, Social, and Governance (ESG) initiatives, such as developing energy-efficient buildings and promoting carbon reduction, making it appealing to ESG-conscious investors.

The REIT has performed well since its launch in December 2013, with an annualised NAV total return of 7.7%. Despite market volatility, Tritax has shown resilience with a strong balance sheet, high occupancy rates, and consistent rental growth. Its diversified tenant mix reduces reliance on any single sector or client.

Like many property trusts, Tritax has traded at a discount to NAV for much of its history. However, the fund has dramatically de-rated as of late and its shares now trade at a 27% discount to NAV (vs a 12-month average of 16%), which we believe makes this a very attractive entry point. Further falls in interest rates will surely help to narrow this discount. With a 5.5% dividend to boot, we rate the shares a strong buy

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