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Tax info


Category 2 Tax Residency - Introduction

Gibraltar has its own Government and is therefore able to raise its own taxes, (with the UK responsible for foreign affairs, security and defense). It became a British overseas territory in 2002 under the British Overseas Territory Act 2002.

Gibraltar is a modern International Financial Centre which (through the UK) is within the EU and benefits from EU directives making it an attractive location for cross border investment. Gibraltar also benefits from being able to passport services into other EU states making it a popular location for businesses to have their headquarters. In addition, Gibraltar is deemed a "white" listed territory by the OECD as it has signed sufficient tax information exchange agreements.


Category 2 Gibraltar Tax Residency–The Attraction For High Net Worth Individuals

Category 2 tax residents have their tax capped at a maximum of approximately £ 30,000 per annum. This capped amount is calculated based on a total income of £ 80,000.

An application is made to the Finance Centre Director for the issue of a certificate under the Qualifying (Category 2) Individual Rules under the Income Tax Ordinance. A £ 1000.00 non-refundable application fee is payable and the application must be supported by two character references from recognised and established professionals (one must be from a bank and the other from a law or accountancy firm) a copy of his or her passport and a curriculum vitae.

In order for an individual to qualify for Category 2 status approved residential accommodation must be made available for their exclusive use in Gibraltar throughout the year.

The Category 2 individual is not allowed to engage in a trade, business or employment in Gibraltar. There is no minimum stay in Gibraltar for a Category 2 resident individual; therefore as long as the individual fulfills all of the above conditions he will retain his Gibraltar residency without the need to spend any time in Gibraltar.

A form describing the property must be submitted for approval to the Finance Centre Director within two months of the issue of the certificate. Century 21 Gibraltar will undertake this service for all of our clients at no cost and will always ensure that the said property has been approved for the relevant status prior to them entering into any agreement to purchase or rental contract.


Higher Executive Possessing Special Skills status ("HEPSS")

This is a new status, which is aimed at relocating executives with specialist skills earning in excess of £ 100,000 per annum. HEPSS individuals will pay tax only on the first £ 120,000 of earnings and they can choose between the Allowance Based or Gross Income Based system.

The applicant is required to either rent or purchase a property, similar to those of Category 2 residents, in Gibraltar which is to be made available for his or her exclusive use throughout the year.

A form describing the property must be submitted for approval to the Finance Centre Director within two months of the issue of the certificate. Century 21 Gibraltar will undertake this service for all of our clients at no cost and will always ensure that the said property has been approved for the relevant status prior to them entering into any agreement to purchase or rental contract.


Tax liability of Gibraltar tax resident companies

"Ordinarily resident " companies are liable to tax at a flat rate of 10%.

VAT - INHERITANCE TAX - DEATH DUTIES - WEALTH TAX & CAPITAL GAINS TAX

Stamp duty

There is no VAT or sales tax in Gibraltar. Furthermore, there is no Inheritance Tax, Death Duties, Wealth Tax or Capital Gains Tax payable in Gibraltar.
In order to give effect to this measure, a new threshold will be created for those purchasers that qualify as first-time buyers or second-time buyers as defined by Section 19A of the Act (hereinafter referred to as "Qualifying Purchasers").
With effect from 23rd June 2015, Qualifying Purchases of residential property will be liable to Stamp Duty as follows:-

Property Purchase Price Stamp Duty Rate
On the first £260,000 there is no stamp dudy 0
£260,000 - £350,000 5.5%
£350,000 and above 3.5%

All other transactions relating to non-Qualifying Purchasers will be liable to duty according to the standard thresholds of duty as follows:

Property Purchase Price Stamp Duty Rate
£200,000 or under 0
£200,000 - £350,000 2% on the first £250,000 of the value
If the amount exceeds £250,000 5.5%
If the amount exceeds £350,000 3% of the first £350,000 and then 3.5% if exceeds £350,000.