When I went to buy a property, the seller told me that he sold to me a shares from a Company placed in Gibraltar. What are the advantages and disadvantages to buying a shares of a Company placed in Gibraltar? Should I purchase?


The advantages are that:
1- The purchase of shares primarily means not paying any transfer tax.
2- The shares are freely transferable between the living and upon death according with the applicable legislation. 
3- The companies pay dividends each year if they obtain benefits and it is decided by Ordinary Shareholders. There is no liability to tax on dividends paid by a Gibraltar company to a person who is not resident in Gibraltar. There is also no withholding tax on dividends paid.
4- In Gibraltar there are fiscal advantages. It is possible obtain a reduce tax rate. Companies are subject to taxation on income accrued in or derived from Gibraltar on the taxable profits for the financial year.
Regarding the purchase of the property through shares, this depends on your interests and your needs. The disadvantages is the cost of owning a Company in Gibraltar, the payment of the Special Tax on the Property for being owned by a Company of a Country without Double Taxation Agreement, etc. Normally this sort of international tax planning only have sense when you are talking about important investments.

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