Author: Alena Dunaeva
Attorney, Family Office
Private Funds in Gibraltar
Private.law specialises in the establishment of private funds in Gibraltar—an effective instrument for asset management in the interests of beneficiaries. Our funds ensure confidentiality of information regarding beneficiaries and assets, as well as protection of property from enforcement in respect of personal liabilities of the founder or beneficiaries.
A fund in Gibraltar is an ideal solution for investing in various asset classes: cryptocurrency, venture projects and real estate. When transferring rights to assets, separate re-registration of each asset is not required—the status of the beneficiary is simply changed, which significantly simplifies inheritance and the sale of shares.
A private fund allows the accumulation of capital from up to 50 investors via a Capital Call from a regulated financial institution, ensuring predictability and ease of compliance.
Fund Structure
To establish a private fund in Gibraltar, we use a Limited Partnership (LP) structure with a General Partner (GP), which has the following characteristics:
- General Partner (GP) – the managing partner, bearing unlimited liability and exercising operational management of the fund
- Limited Partners (LP) – limited partners contributing capital and liable only up to the amount of their contribution
- GP is usually represented by a local limited liability company making investment decisions
- LPs may be individuals or legal entities investing in the fund but not participating in its management
Key Requirements
- £10,000 minimum capital
- Local management company
- Local administrator-secretary
Taxation
Funds in the LP&GP format in Gibraltar have a special tax status of a “pass-through entity”. This means that the fund itself is not subject to taxation—tax obligations “pass through” the fund and arise for the investors in accordance with their tax residency.
Tax | Rate |
Capital gains tax within the fund | 0% |
Dividend tax on distributions by the fund | 0% |
Inheritance tax upon transfer of fund shares | 0% |
Gift tax | 0% |
VAT on fund management services | 0% |
Withholding tax on payments to non-residents | 0% |
For non-residents of Gibraltar this creates a significant tax advantage. Since taxation occurs in accordance with the investor’s tax status in their country of residence this opens opportunities for effective international tax planning:
Compliance and Regulation
In February 2024, Gibraltar was removed from the FATF “grey list”, and in January 2025—from the European Union’s list of high-risk jurisdictions. This has significantly simplified the onboarding procedures for Gibraltar structures in financial institutions and established clear standards for KYC/AML compliance and fund reporting.
Fund Documents
Placement Memorandum
- Contains detailed information about the fund
- Describes the investment strategy
- Lists potential risks
- Specifies investment conditions (including GP’s fee)
Investor Documentation
For clients from high-risk jurisdictions (including Russian citizens), additional third-party verification will be required, such as a confirmation letter from a solicitor or a certified ACCA accountant. Our firm provides such services.
Ongoing Obligations
- Annual financial reporting — submitted to the Private Fund Register within 9 months after the end of the financial year
- Regulator notifications — mandatory notification of changes in the fund’s structure and timely data updates
- Audit — mandatory for funds with assets exceeding £1 million, conducted by independent auditors under IFRS
- Compliance with KYC/AML requirements — maintenance of up-to-date documentation for all investors and beneficiaries
Timeline and Cost
Fund Registration Timeline and Cost
Process | Timeline | Cost |
Fund registration | 2–4 weeks | from £45,000 |
Onboarding of first investor | 1 week | included in registration |
Additional investor onboarding | 1 week | £3,500 per investor |
Annual Costs
Service | Annual Cost |
Fund reporting and renewal | from £2,500 |
Legal services | from £5,000 |
Contact Information
If you have any questions or require a consultation, our experts will be happy to assist you.
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