Private foundation in Gibraltar: setup, tax and costs

Updated 3 October 2026

Zero Gibraltar tax on a foundation's foreign income, provided the charter excludes local residents from benefit. The price is a licensed councillor for the life of the foundation, council names on a public register and founder powers that lapse on death.

A single clause in the founding document decides how much tax a Gibraltar private foundation pays. If the charter irrevocably excludes Gibraltar residents and their descendants from benefit, section 13A of the Income Tax Act 2010 treats the foundation as non-resident, and it is taxed only on income from Gibraltar sources. Interest, dividends and gains on foreign assets are not taxed in Gibraltar at all. Leave the clause out and the foundation is resident by default and pays 15% (the rate since 1 July 2024) on its worldwide income, foreign income included.

What a Gibraltar foundation will not do is hide anything. The names of its council members and guardian sit on a public register, annual filings go to Companies House Gibraltar, the state registry, and account data on the beneficiaries flows to the tax authorities where they live under CRS, the OECD Common Reporting Standard for automatic exchange of financial information. Gibraltar was an early adopter and has been exchanging this data since 2017.

What it does offer is something a trust cannot: a separate legal person that owns assets in its own name, signs contracts and makes sense to notaries and banks in civil law countries, from Spain to Latin America. This guide covers the law, tax, registers, official fees, a comparison with Jersey, Liechtenstein, Panama and Austria, and an honest list of drawbacks. If you are weighing up setting up a trust in Gibraltar instead, our page on the Gibraltar trust covers that route in depth.

What is a Gibraltar private foundation and how is it different from a trust

Private foundations arrived in Gibraltar on 11 April 2017, when the Private Foundations Act 2017 came into force. A foundation is a legal entity with no shareholders or members. It holds property in its own name as absolute owner and can sue and be sued. The Act states plainly that assets validly transferred to a foundation stop belonging to the founder and do not belong to any beneficiary until the foundation distributes them under its own rules.

The endowment is irrevocable. A founder cannot change their mind and take the assets back; they can only come out as a distribution, and only if the charter allows it. The Act sets no minimum capital. In practice a foundation is registered with a nominal endowment, and the main assets follow once a bank account is open.

A trust works differently. It is not an organisation but a relationship: the trustee owns the assets legally but must use them for the beneficiaries. No new person comes into existence, which is why courts and tax offices in countries without trust law often look straight through a trust to the settlor. A foundation is recognised there as an ordinary foreign entity, and there are fewer questions about what it is.

A foundation has two founding documents. The Foundation Charter is the constitution: name, founder, purpose, initial assets, Gibraltar law as governing law, how beneficiaries are designated, the foundation's duration and its registered office. The Foundation Rules are the internal rulebook: the council's functions, how distributions work, remuneration, and what happens to the assets on winding up. If the charter already covers everything required, the foundation does not need separate rules.

The purpose can be anything lawful, charitable or not. There are two limits. A foundation may not carry on a commercial or trading activity unless it is incidental to its purpose, and it may not run a licensable business in Gibraltar without its own licence. Holding shares in family companies, an investment portfolio or real estate is fine. The business sits in companies below the foundation, not in the foundation itself.

Who runs a Gibraltar foundation and how much control does the founder keep

There is no such thing as a Gibraltar foundation fully controlled by its founder. Section 24 of the Act requires the council to include, at all times, a Gibraltar resident company licensed by the GFSC (Gibraltar Financial Services Commission) to provide professional trust services. The Act still calls this a Class VII licence; under the Financial Services Act 2019 it is a permission to act as a professional trustee and professional foundation councillor. That licensed company can also be the only councillor.

The founder may sit on the council alongside it, act as guardian or be a beneficiary. But under section 23 the founder can reserve only four powers, and each must be set out in full in the charter:

• to vary or amend the constitutional documents, in whole or in part;
• to vary or amend the foundation's purpose;
• to appoint and remove councillors;
• to appoint and remove the guardian.

Those powers also have a time limit. An individual founder keeps them only for life, a corporate founder only for 30 years from establishment. After that they lapse, whatever the documents say, and they do not pass to heirs. The power to appoint councillors and the guardian after the founder's death can be given in advance to someone named in the documents. The family should understand this before, not after.

Where there are several founders, by default they act only jointly. Someone who adds assets later does not become a founder. Unless the documents say otherwise, the council acts unanimously on distributions and has the powers of an absolute owner in managing the assets.

The reason for this strictness is found in the case law. The more control a founder keeps, the easier it is for a creditor, a former spouse or a tax authority to argue that the assets never really left them. Four reserved powers plus an independent licensed councillor is the balance that lets a family steer the foundation while the foundation stays genuinely separate.

Should you set up a family trust in Gibraltar instead of a foundation

For many families the honest answer is yes. A Gibraltar trust is more private, can run for up to 250 years, and has a statutory asset protection regime under section 419A of the Insolvency Act 2011 that foundations lack. A foundation wins when assets, heirs or banks sit in civil law countries that struggle to recognise a trust.

If a family trust looks like the better fit, the full guide to setting up a trust in Gibraltar, with trust law, tax, the trust register and trustee rules, is on our Gibraltar trust page. A broader comparison of both structures is in our article on choosing between a trust and a foundation.

How much tax does a Gibraltar private foundation pay

Gibraltar taxes companies on a territorial basis: tax falls only on income accrued in or derived from Gibraltar. Foundations are different, and everything turns on tax residence: a resident foundation is taxed on its worldwide income, a non-resident one only on Gibraltar-source income. Under section 13A of the Income Tax Act 2010 a foundation is resident in Gibraltar unless persons ordinarily resident in Gibraltar and their issue have been irrevocably excluded from benefit. That is stricter than the trust rule: a trust becomes resident when a Gibraltar resident is or may become a beneficiary, whereas a foundation is resident by default.

Category 2 is a special tax status for high net worth individuals who move to Gibraltar, with tax charged on a capped amount of income. The Act specifically lets these residents, their spouses and children be beneficiaries without making the foundation resident. More on moving to Gibraltar and its tax statuses is in our article on HEPSS and Category 2 in Gibraltar.

The other taxes are either absent or barely touch a family foundation:

• there is no capital gains tax; the exception, since 1 January 2025, is profit on selling Gibraltar residential property where the seller owns five or more taxable residential properties;
• there is no inheritance, gift or wealth tax;
• there is no VAT; the Transaction Tax in force since 15 July 2026 applies to goods rather than services;
• if a Gibraltar holding company sits under the foundation, it receives dividends from other companies tax free, and interest on intra-group loans is taxed only above $140,000 a year.

The 15% rate was left unchanged in the 2026 Budget. The EU-UK agreement on Gibraltar, signed on 14 July 2026 and provisionally applied from 15 July, deals mainly with the border and customs: Schengen rules apply at the territory's external border, and a customs union with the EU is being created.

There is also a welcome piece of paperwork relief. If neither the foundation nor its beneficiaries have any Gibraltar tax liability, the council does not file a tax return. Instead, the licensed councillor makes an annual declaration to the Commissioner of Income Tax covering such foundations by 30 November, under section 28 of the Income Tax Act 2010.

What will your home tax authority do with the foundation's income

Zero in Gibraltar does not mean zero overall. How much tax is due on the foundation's income and on distributions is decided by the country where the founder and beneficiaries live, and that country finds out without being told. The licensed councillor usually reports under CRS itself, so data on the foundation's accounts, payments and beneficiaries goes to their home tax authorities.

Local rules then take over. Many countries, including Germany, Spain, the UK and Ukraine, have controlled foreign company (CFC) rules: if a tax resident controls a foreign structure, its undistributed profits can be taxed at home even if no money was paid out. For a foundation, control is judged by powers: the right to appoint the council or amend the charter may be treated as control. How these rules work is explained on our page on controlled foreign companies.

Spain, Gibraltar's only land neighbour, is a special case. The Spain-UK tax agreement on Gibraltar was signed on 4 March 2019 and has been in force since 4 March 2021. Under it, a Gibraltar entity is tax resident only in Spain if most of its assets are in Spain, most of its income comes from Spain, most of the people in charge of its effective management are Spanish tax residents, or Spanish tax residents hold most of the rights to its capital, votes or profits. Any one of these tests is enough. The Government of Gibraltar's own guidance says it plainly: Spain looks through trusts and foundations to whoever really controls them.

Who can see the founder and beneficiaries of a Gibraltar foundation

A Gibraltar foundation appears on two registers, and they are open to different degrees. The first is the Register of Foundations at Companies House Gibraltar. Under section 12 of the Act, five items are open to public inspection: the foundation's name and number, date of registration, names and addresses of councillors, name and address of any guardian, and registered office details. The charter and other filed documents are also held by the registrar but are not on the list of publicly available information.

The second is the Register of Ultimate Beneficial Owners under the 2017 regulations. In February 2026 the Government of Gibraltar announced that searching it would become free for everyone. Over the summer the rules were rewritten twice: Legal Notice 147/2026 would have limited access to people with a legitimate interest, but that restriction was replaced before it ever operated: the version set by Legal Notice 220/2026 has applied since 15 July 2026. For companies and other legal entities, any member of the public can now see the beneficial owner's name, month and year of birth, nationality, country of residence and the nature and extent of their interest.

Trust data is closed to the public and even to banks; only competent authorities, the Commissioner of Income Tax and the GFIU, Gibraltar's financial intelligence unit, can see it. Foundations sit between the two regimes. The regulations expressly treat a foundation with tax consequences in Gibraltar like a trust. Yet a foundation is also a legal entity, and it is prudent to assume its beneficial owners may appear in the public part of the register. The precise answer for a given structure should be confirmed with the licensed councillor before registration.

On privacy, a Gibraltar trust beats a foundation outright, because trust data never appears on a public register. The trust register rules are covered on our Gibraltar trust page.

Does a Gibraltar foundation protect assets from heirs and creditors

Against foreign inheritance rules, yes, and that is the main reason families from civil law countries look at Gibraltar. Section 44 of the Act is a firewall: every question about the foundation, its assets, beneficiaries' rights and distributions is decided under Gibraltar law alone. Neither the foundation nor a transfer of assets to it can be set aside because a foreign law does not recognise foundations or gives relatives forced heirship rights.

The same section says a foreign court judgment will not be recognised or enforced in Gibraltar if it is inconsistent with the Act. For a family from Spain, Italy, France or Russia, where children and spouses are entitled to a reserved share of an estate, that means a claim against the foundation's assets has to be fought in a Gibraltar court under Gibraltar law.

The firewall has limits, written into the same section. It does not validate a transfer of assets the founder did not own. It does not validate a transfer of real estate in another country if that transfer is invalid under local law. And it does not revive a will that is invalid under the law of the testator's domicile. A flat in Madrid or Moscow passes to a foundation only under Spanish or Russian rules, with all their taxes and formalities.

Creditors are a harder case. The Act protects the foundation's assets in the absence of fraud, and a court can wind up a foundation established through fraud, duress, undue influence, misrepresentation or breach of fiduciary duty. Foundations have no dedicated creditor protection regime like the one section 419A of the Insolvency Act 2011 gives to asset protection trusts. A foundation set up well in advance, with money of clear origin, is a working tool. One set up after debts or lawsuits appear almost never is.

How much does a Gibraltar private foundation cost

The state charges little. The main cost is the licensed councillor's fee: the councillor carries legal responsibility for the foundation and prices that in. Companies House Gibraltar's official fees under its current fee table are:

On top of the official fees come Murblz specialists' work on the charter and rules, the councillors' notarised declaration that the initial assets are at their disposal, a registered office, annual accounting, a bank account and source of funds checks. Accounts must follow UK-adopted international accounting standards or standards issued by the UK Financial Reporting Council; this part of the Act was updated in July 2026.

The more complex the assets, the higher the annual fee. One brokerage account is simpler to administer than trading businesses in several countries, real estate or crypto assets. Our own fees for setting up the foundation are in the table below the text.

Gibraltar, Jersey, Liechtenstein, Panama or Austria: where to set up a private foundation

On entry cost Gibraltar undercuts almost everyone: like Jersey, it has no minimum capital, while Liechtenstein requires $37,000, Austria $79,000 and Panama USD 10,000. On privacy it trails Liechtenstein, where private benefit foundations are generally not entered in the public commercial register.

Gibraltar wins when English legal tradition, proximity to Spain and Portugal, no minimum capital and a regulator within walking distance all matter at once. Jersey is the larger financial centre and more familiar to banks, Liechtenstein offers maximum privacy and a century of foundation law, and Austria gives a structure inside the EU. See our pages on Jersey foundations, the Liechtenstein private foundation, the Panama private foundation and the Austrian Privatstiftung.

How to set up a private foundation in Gibraltar, step by step

Registration at Companies House itself can be done the same day with a complete file and the urgency fee. What takes longer is everything before it: tax analysis, and source of funds checks by the licensed councillor and the bank.

1. Home country tax analysis. Before choosing Gibraltar, check how the foundation, its distributions and the founder's powers will be seen by the tax authority where the founder and beneficiaries live.
2. Choosing the licensed councillor. This is a Gibraltar company holding a GFSC permission. It vets the founder, the source of funds and the foundation's purpose, and it can say no.
3. Charter and rules. Purpose, class of beneficiaries, the founder's powers, distributions, the guardian, conditions for moving the foundation abroad and for winding up. This is also where the clause excluding Gibraltar residents goes, if the foundation is meant to be non-resident.
4. Documents for the registrar. The charter, executed by the founder as a deed; details of the endowment; a notarised declaration by the councillors that the initial assets are at their disposal; the founder's declaration that the charter is accurate; the councillors' and guardian's consents; the address and telephone number of the Gibraltar registered office; and the fee.
5. Registration. The Registrar of Foundations enters the foundation on the register, allocates a number and issues a Certificate of Establishment. From that moment the foundation exists as a legal entity.
6. Bank account and transfer of assets. The bank runs its own checks, then money, company shares or property are transferred. For property abroad, the rules of the country where it is located apply.
7. Beneficial ownership register. Details of beneficial owners are filed within the set deadlines and kept up to date.
8. Annual obligations. The annual return is made up to a date no later than the anniversary of registration and filed within 28 days. The first accounts may cover up to 18 months, then 12 months each; two councillors sign them, or the sole councillor if there is only one. Changes to the council, guardian or charter are notified to the registrar within 21 days.

Skipping annual returns is risky. If a foundation is six months late, the registrar can write demanding it put things right within a month, and then apply to court to wind it up.

A foundation does not have to be created from scratch. The Act lets an overseas foundation move to Gibraltar if the law of its home jurisdiction allows, and lets a Gibraltar foundation move abroad after notifying its creditors, with no break in legal personality. A Gibraltar company limited by guarantee can also be converted into a foundation.

Pitfalls, and who a Gibraltar foundation is not for

• A mandatory outsider on the council. The licensed company stays on the council for as long as the foundation exists, and its fee is a permanent cost.
• The founder's powers expire. They lapse on the founder's death, or after 30 years for a corporate founder, whatever the charter says. Succession needs planning from day one.
• Resident by default. Forgetting the clause excluding Gibraltar residents makes the foundation tax resident.
• A public council. Councillors' and guardians' names are public. If the founder sits on the council, their name will be on the open register.
• The beneficial ownership register. Since July 2026 the regime for a foundation depends on whether it has tax consequences in Gibraltar.
• No trading. A foundation cannot trade or run a commercial business itself, only hold assets and companies.
• Spain and other civil law countries. Spain's tax authority looks through foundations, and the 2019 agreement makes Gibraltar entities mainly managed or owned by Spanish residents tax resident in Spain.
• Banks and reputation. Gibraltar was on the FATF (Financial Action Task Force) grey list from June 2022 to February 2024 and only came off the EU list of high-risk countries for money laundering in 2025. Some banks may still ask for enhanced checks on Gibraltar structures.
• Sanctions. Under the Sanctions Act 2019, Gibraltar automatically recognises UN, UK and EU sanctions. Since 16 December 2022 UK rules have banned trust services to persons ordinarily resident or located in Russia, and foundations may well be caught as arrangements similar to trusts. The test is residence, not nationality.

Who it is not for. Anyone who wants full personal control over the assets: the law does not allow it. Anyone with existing debts, lawsuits or tax audits. Anyone hoping to hide assets from their home tax authority. Anyone living in Russia: a licensed councillor is likely to decline because of the sanctions rules. Anyone who needs a vehicle for active trading or an operating business without a separate company. And families whose beneficiaries live in Spain, unless they are ready to pay tax under Spanish rules.

Who it suits. Families from civil law countries who need an owner of family assets that local notaries and banks understand, and protection from other countries' forced heirship rules. Owners of several companies who want a holder of shares above the holding level. People moving to Gibraltar under Category 2 who want their family wealth close by. And anyone building a multi-generation structure who is ready to hand management to a professional.

How we help you set up a Gibraltar private foundation

We start with the tax law of the country where the founder and beneficiaries live, and only then move to Gibraltar. Sometimes the answer is different: the family is better served by a trust or by a foundation elsewhere. Our overview of trusts and private foundations in Gibraltar sets the two side by side.

If Gibraltar fits, we handle:

• comparing Gibraltar with Jersey, Liechtenstein, Panama and Austria for your assets and country of residence;
• choosing the licensed councillor and agreeing terms;
• the charter, rules, guardian role and the tax residence clause;
• preparing source of funds documents for the councillor's and bank's checks;
• registration with Companies House and on the beneficial ownership register;
• a holding company under the foundation through company registration in Gibraltar;
• ongoing support: annual returns, charter changes, changes of councillors, distributions to beneficiaries.

How a foundation fits into passing wealth to the next generation and changing citizenship is covered in our article on inheritance and a second passport. All our trust and foundation services are in the trusts and private foundations section.

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