NEW TAX LAW: THE EUROPEAN SAVINGS DIRECTIVE (ESD)
The ESD took effect in July 2005 and is designed to stop tax evasion. It means tax will be deducted at source from income (predominantly interest) earned by EU residents, and/or there will be an exchange of information with the tax authorities in the country you are resident (e.g. Spain).
The tax deducted starts at 15% but increases over the years to 35% from 2011!
What to do if you have money on deposit:
Talk to us about the legitimate way to solve this progressive tax and intrusion on your privacy.
What not to do:
One or two Gibraltar banks have tried to protect their own interests and retain client deposits by suggesting an offshore company is set up to hold the deposit account. Not only can this be costly, but it has been labeled as tax evasion by the EU Commissioner. It will be stopped and penalties/fines could well apply.