White also pointed out that where Gibraltar does still stand at a disadvantage in his view is the 2.5% withholding tax.
“Prior to the introduction of the 25% overseas transfer charge, Malta was being used when Qrops were required for EEA residents, due to the fact that double taxation treaties allowed pension income to be paid gross to residents of these countries and Gibraltar was used for residents of non EEA countries which didn’t have a double tax treaty with Malta.
“In this instance the 2.5% withholding tax was not seen as too much of an issue as it allowed the pension income to be taxed in the country of residence. Going forwards Qrops will be used primarily for residents of EEA countries and Gibraltar will be at a slight disadvantage to Malta to due to the small withholding tax which is applied,” said White.
