July 23, 2018

Gibraltar Budget 2018

Yesterday, July 2 2018, Gibraltar’s Chief Minister Fabian Picardo delivered his budget speech to parliament showing a buoyant economy and positive outlook as Gibraltar heads towards Brexit.

The Chief Minister’s main objective was to deliver a balanced budget, one that provides caution with optimism and prudence with investment adding there would be no cuts and no austerity as Gibraltar readies itself to leave the European Union next year.

The latest developments in distribute ledger technology, which has led to 35 companies having already applied to the Financial Services Commission for regulatory approval, continues to grow and attract business to the Rock, further diversifying Gibraltar’s already diversified financial services offering.

Corporate taxes will remain the same at a maximum of 10% (20% for utility businesses), whilst Personal tax rates remain the same under the ‘Gross Income Based’ regime providing stability to businesses, and their employees, who have chosen the Rock as their base to do business from.

In Summary:

  • GDP for 2017-18 forecasted at £2.8 billion – Growth of 8.6% from last year;

  • GDP per captia for the same period forecast;

  • Inflation to date at 2.6%;

  • Government revenue at £652m, an increase of 6% in the year;

  • Budget surplus 2017-18 estimated at £36.                                                     A copy of the Chief Minister’s speech can be found here.