A freeport is a designated area – defined by government – which is subject to special economic rules. Specifically, a freeport has different rules when it comes to taxation, as well as customs duties, with certain sites allowed tax relief and customs exemptions.

What are tax and customs sites?

Customs sites: A Freeport customs area, often referred to as a ‘free zone,’ is a designated secure area where the usual customs rules are relaxed. Authorised businesses can bring items into a Freeport customs area with less paperwork and without paying customs duties, and are able to store and process goods. If they meet specific conditions, they may not have to pay import taxes or excise duties. 

Tax sites: Tax sites are separate from customs sites and look to incentivise greater levels of investment from businesses. Businesses in these tax sites can enjoy various tax benefits, including a reduction in National Insurance costs for new staff. New companies that set up in a Freeport tax site or existing companies who are  growing their operations may benefit from tax reliefs.