With summer, comes the fun of the beach, holidays, and for a lucky few, summer hours!
It may be of no surprise then that for estate agents in Gibraltar, the months of July and August normally tend to be one of the quieter periods in our calendar, and, that in itself, is a reflection of the fact that most people are naturally more pre-occupied with enjoying the weather and outdoor life.
Well, that was the normal pattern until the summer of 2013!
As we explained in our last edition, there was a significant and tangible increase in enquiries for Gibraltar real estate leading up to this Summer, and whereas in previous years we would expect demand to tail off during the summer months, it has been the opposite this year.
So why is Gibraltar becoming so attractive to house-buyers and would-be tenants you may ask?
There is no single answer to that question in my opinion, and I believe it is combination of factors -some of which Gibraltar has engineered with astute fiscal policies and others which are beyond our control, but nevertheless, fortunate for us.
Take for example, how other countries continue on their questionable path of raising taxes whilst cutting back on expenditure. It can be argued there is no other realistic alternative but for countries such as Spain to continue along that path, but the end result is becoming very clear – they are driving foreign investment and many residents away from their shores and into the arms of more welcoming jurisdictions, such as here in Gibraltar.
Gibraltar, with its stable political and economic environment, has so much to offer individuals and companies looking to establish residency or invest in real estate. Since the full opening of the Frontier with Spain in 1985, Gibraltar has striven to become a leading finance centre and with corporation tax rate at 10% and the maximum effective rate of tax for individuals at 25%, it is easy to see why so many international corporations are setting-up their head offices here.
Wealthy individuals, also called High Net Worth Individuals (HNWI’s) also benefit from Gibraltar’s low tax regime, and those that relocate here are able to have their worldwide income tax capped at circa £30,000.
To however solely attribute Gibraltar’s burgeoning reputation to its favourable tax regime is a disservice to all the other factors that contribute to the wonderful quality of life available here and all the ingredients that make it such a special place to live in.
If the tax incentives available to tempt you moving here were not enough in themselves, just think of all the other reasons why people from all walks of life are now considering a permanent move to Gibraltar – not least because of our diverse culture and rich history with 300 days of sunshine a year, our unique geography, a legal system based on the British legal system, safety, our British based education system, direct flights to the UK, and jobs available in a strong economy focusing on Financial Services, Maritime Services, Tourism and E-Gaming.
The property market in Gibraltar is as solid as the Rock itself.