While part of the European Union until Brexit, the British overseas territory of Gibraltar has a separate legal jurisdiction from the United Kingdom and a different tax system.

[7] In December 2008 in a landmark decision the European Court of Justice ruled that:[8] the Court finds that the competent Gibraltar authorities which have devised the tax reform have, from a constitutional point of view, a political and administrative status separate from that of the central government of the United Kingdom.This allowed the implementation of a new low tax system which took full effect in 2010.

Referred to as an International Finance Centre,[9] Gibraltar was among 35 jurisdictions identified by the Organisation for Economic Co-operation and Development (OECD) as a tax haven in June 2000.

More than five years have passed since the publication of the OECD list contained in the 2000 Report and positive changes have occurred in individual countries' transparency and exchange of information laws and practices since that time.

[15] Fiscal advantages, including no tax on capital income, are offered to a maximum of 8,464 offshore qualified companies incorporated in Gibraltar.

The Rock was ranked 26th in a list of 69 leading finance centres around the world based on an online survey of 1,236 business professionals, who provided a total of 18,878 assessments.

[22] In the most recent GFCI report of 2011, Gibraltar was ranked 63rd in the world, and 8th of the leading offshore financial centres (OFCs).

[citation needed] The UK has published plans to protect online gamblers from crime and exploitation by banning gambling adverts from poorly regulated countries[28] which specifically mention Gibraltar as an approved location.

The UK's Ministry of Defence was originally the mainstay of Gibraltar's economy but this has greatly reduced to around 6% of the gross domestic product.

In 2006 the Ministry of Defence announced that the provision of services to the military base would be contracted to make further cost savings.

[29] Gibraltar benefits from an extensive shipping trade, a well regulated international finance center, tourism, and has become a global leader in the virtual gaming industry.

[30][31] Self-sufficient Gibraltar benefits from an extensive shipping trade, offshore banking, and its position as an international conference center.

The financial sector, tourism (almost 5 million visitors in 1998), shipping services fees, and duties on consumer goods also generate revenue.

Speaking at the 2007 budget session, Peter Caruana, the Chief Minister said "The scale of Gibraltar's economic success makes it one of the most affluent communities in the entire world."