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Falkland Islands (Malvinas) Compliance Regulations for Financial Institutions

The Falkland Islands, also known as the Malvinas, are a British overseas territory located in the South Atlantic Ocean. This archipelago consists of two main islands and over 700 smaller islands, situated approximately 300 miles east of Argentina and 8,000 miles from the United Kingdom.

Economic Overview

The Falkland Islands have a small but stable economy with low taxes and a favorable business environment. Companies can take advantage of a simple tax regime, with no corporate taxes or capital gains taxes, and personal income tax rates are also relatively low. The islands’ strategic location in the South Atlantic provides easy access to markets in South America and beyond.

Tax Laws

Financial institutions operating in the Falkland Islands must comply with various regulations, including:

  • Corporate Tax: 21% for profits up to £500,000 and 26% for profits over £500,000
  • No Value-Added Tax (VAT): Income and corporate taxes fund government operations

Individual Taxes

Individuals are also subject to tax laws, including:

  • Single Tax Rate: 26% for all income earners
  • Personal Allowance: £11,500 per year (no income tax applies on earnings up to this amount)
  • Deductions and Credits: Available for charitable donations and pension contributions

Company Types

The Falkland Islands have a simple legal framework for companies, with various types including:

  • Private limited companies
  • Public limited companies
  • Limited liability partnerships
  • Sole proprietorships
  • Branch offices of foreign companies

Foreign Companies

Foreign companies can establish a branch office to carry out business activities in the Falkland Islands, subject to the same regulations and tax laws as other companies.

Compliance for Financial Institutions

For financial institutions looking to set up operations in the Falkland Islands, it is essential to understand and comply with local regulations. By doing so, they can take advantage of the islands’ favorable business environment and strategic location while minimizing risk.

Get Guidance

Contact [email protected] for guidance on setting up your business in the Falkland Islands.