The Gibraltar Difference – English-Aligned Law & Business Benefits

[Liz Seyi]

Explore how Gibraltar’s English-based legal system and unique UK ties make it a prime choice for company management and trust services.
The Gibraltar Difference – the law.
The Gibraltar company management and trust services sector prides itself on its Mediterranean location. Over the coming months, I will explain why Gibraltar should be among the jurisdictions considered by clients and their advisers. While there is no one-size-fits-all solution – the Rock may not be the best fit for every client – it is certainly worth considering.
A quick search for “corporate services Gibraltar” or “company administration Gibraltar” will highlight a range of reasons why Gibraltar is a preferred jurisdiction. These often include its location, expertise in company management and trust services, experienced professionals, and, of course, the climate. While all true, these advantages are not unique. So, what, therefore is the Gibraltar Difference?
In this first piece, I focus on one area frequently mentioned but rarely fully explored: Gibraltar’s legal system. Commonly described as “based on English law,” what does that really mean in practice?
Crucially, there is no body of specific “ancient local” law as in the Crown Dependencies. Other than minor modifications, Gibraltar’s legal system, including the judiciary, is based entirely on its English counterpart. Clients and their advisers familiar with English common law may view favorably a broadly similar system dating back to 1740, when the Second Charter of Justice substituted English law for its hitherto Spanish equivalent.
The Gibraltar system relies on a combination of common law and statute, again very much mirroring its English equivalent. Indeed, the English Law (Application) Act of 1962 stipulates that English common law will apply in the territory unless overridden by local legislation.
The Supreme Court of Gibraltar and the Court of Appeal follow the subordinate courts (the Coroner’s Court and the Magistrate’s Court). The Judicial Committee of the Privy Council is Gibraltar’s highest court of appeal.
There is an excellent summary of all this at both the Government of Gibraltar’s website on the Laws of Gibraltar www.gibraltarlaws.gov.gi and the Gibraltar Courts Service information at www.gcs.gov.gi.
Clients and their advisers can be confident that the structures and company vehicles they establish in Gibraltar will mirror their English counterparts, and any disputes will be handled with the same rigour as those in London.
One example of Gibraltar’s strong business ties with the UK is the Gibraltar Authorisation Regime (GAR). This allows financial services businesses regulated in one state to passport their services into the other. Gibraltar is the only jurisdiction globally with such an agreement. For investors seeking to establish a UK presence, becoming regulated in Gibraltar first can speed up the process and reduce costs.
While Gibraltar’s regulatory standards are aligned with those of the UK, the process is facilitated by a responsive regulator (the Financial Services Commission) and a business community eager to collaborate. Additionally, attractive residency options for qualified business owners make Gibraltar an appealing choice. The alignment of Gibraltar’s laws with the English model further simplifies the decision for businesses considering where to establish their operations.
Some say that aspects of British life have lost some of their shine in recent years. The country’s commitment to fair play – embodied in its legal system – endures and remains a key reason why clients choose to set up there. However, the growing complexity of doing business in the UK, especially with the rising tax burden, means that somewhere with similar rules and close ties to the City is an attractive option. That alternative is Gibraltar.
For more information on how you and your clients can benefit from the Gibraltar Difference, contact us at Acquarius.