In May this year, Gibraltar’s recently elected minister for financial services, Gilbert Licudi, announced plans to revive the jurisdiction’s goal of having a tax and pension regime compatible with establishing a QROPS industry on the island.
The new Bill, which amends the jurisdiction’s Income Tax Act 2010, will introduce measures including a 2.5% tax on distributions from pension assets transferred to Gibraltar. The legislation also provides for a maximum commutation of no more than 30%; a minimum retirement age of 55, except "in very specific circumstances relating to chronic ill health"; and it prohibits schemes imported into Gibraltar from being transferred to another scheme outside of Gibraltar “which does not comply with the original requirements” of the Gibraltar scheme.
While there is no timescale on when the Bill will be passed into law, it is not anticipated it will face much resistance from the opposing parties in Parliament. Even if the opposing parties were to object to the Bill, the ruling party, the Social Democrats, has a majority at the moment and so should still be able to pass the Bill.
