Category Archives: Financial News

Smugglers Galore Gibraltar to La Linea

The residents of La Línea de la Concepción are leaving, like rats deserting a sinking ship.

They’ve been crossing the border by the thousands since early morning, first the cleaning women, nannies and construction workers, and then the smugglers. They all want to get out of Spain, if only for a few hours. There is work across the border, in the British overseas territory of Gibraltar, and work spells hope for a better life.
La Linea has around a 40% unemployment rate and it’s rising.
Many Families have had to resort to smuggling cigarettes in order to put food on their plates.
Several trips per day will be made by ‘Matuteras’ overweight women, who can hide more easily excess cartons of cigarettes about their person.
The women set out across the border. The more experienced ones wear their ID cards on a chain around their necks, so that they don’t have to search for it every time they cross the border. One carton of cigarettes per person and crossing is allowed. Those who do not get checked and registered put on different clothes on the Spanish side and set out for Gibraltar again.
The border crossers make a profit of €4 per carton. The operators of the kiosks on the Spanish side, who will sell the cigarettes later, collect another €6. The actual retail price is another €9 higher. But the retail price is no longer important in La Línea, where five of the several regular tobacco shops have gone out of business

The fact that many people “prefer to make €200 a day smuggling cigarettes than €400 a month as an unskilled worker in a supermarket,” as a Guardia Civil officer at the border puts it, doesn’t make things easier.

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QROPS Gibraltar Pension Transfers for British Expats

Gibraltar are now trying to increase their share of the QROPS market by toughening up on their own pension regulations.
HMRC gave Gibraltar a tough time for having a zero per cent income tax rate and only added them to a QROPS list late in proceedings. Now, Gibraltar are toughening up their rules to gain more market share.

The Inland Revenue allows the transfer of a UK taxpayer’s pension pot to another jurisdiction in which they are seeking permanent residence, free from tax. However, in recent months, HMRC has introduced more stringent rules concerning these QROPS, removing a number of structures from its list of recognised schemes.

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