The British military traditionally dominated Gibraltar's economy, with the naval dockyard providing the bulk of economic activity. This however, has diminished over the last twenty years, and is estimated to account for only 7% of the local economy, compared to over 60% in 1984. Today, Gibraltar's economy is dominated by four main sectors: financial services, internet gaming, shipping and tourism (including retail for visitors).
In the early 2000s, many bookmakers and online gaming operators relocated to Gibraltar to benefit from operating in a regulated jurisdiction with a favourable corporate tax regime. However, this corporate tax regime for non-resident controlled companies was phased out by January 2011 and replaced by an across the board Corporate Tax rate of 10%.
Tourism is also a significant industry. Gibraltar is a popular port for cruise ships and attracts day visitors from resorts in Spain. The Rock is a popular tourist attraction, particularly among British tourists and residents in the southern coast of Spain. It is also a popular shopping destination, and all goods and services are VAT free. Many of the large British high street chains have branches or franchises in Gibraltar including Marks & Spencer and Mother care. Branches and franchises of international retailers such as Tommy Hilfiger and Sun glass Hut are also present in Gibraltar, as is the Spanish clothing company Mango.
A number of British and international banks have operations based in Gibraltar. Jyske Bank claims to be the oldest bank in the country, based on Jyske's acquisition in 1987 of Banco Galliano, which began operations in Gibraltar in 1855. An ancestor of Barclays, the Anglo-Egyptian Bank, entered in 1888, and Credit Foncier (now Crédit Agricole) entered in 1920.
In 1967, Gibraltar enacted the Companies (Taxation and Concessions) Ordinance (now an Act), which provided for special tax treatment for international business. This was one of the
