Four Benefits of Moving to Gibraltar

If you’re considering moving to Gibraltar, you’re in the right place. In this post we’re going to give you an overview of the benefits of living in the British Overseas Territory in terms of both financial advantages and the attractive quality of life. From favourable tax regimes and familiar business environments to a coveted lifestyle, we’ll cover it all. Keep reading to discover what living in Gibraltar is like for an expat.

A look at Gibraltar

But first things first: let’s take a closer look at the nation. Gibraltar is a British Overseas Territory situated in the south of the Iberian Peninsula. The land border is with Spain’s Andalusia region while the Strait of Gibraltar separates Europe and North Africa. Gibraltar has an airport providing daily flights to various destinations in Britain, as well as to Tangier and Casablanca. With a total area of 2.62 miles, Gibraltar is dominated by its famous Rock, which accounts for 40% of the territory. Gibraltar has a unique character and offers a wealth of advantages to expats.

Benefits of Gibraltar expat life

A favourable tax regime

In terms of company formation benefits, Gibraltar offers advantageous tax conditions. Corporation tax is just 12.5% of profits and businesses are not required to pay the following:

  • Value-added tax (VAT).
  • Capital gains tax.
  • Tax on interest or gains made from bank investments or investments in any financial institutions.
  • Inheritance tax.
  • Wealth tax.
  • Gift tax.
  • Withholding tax.
  • Tax on liquidation distributions.
  • Tax on dividends paid by any company or to a non-resident individual.

Gibraltar expat tax

For Gibraltar expats, there are two systems in place for the assessment of income tax, namely a traditional allowance-based system and what is known as the Gross Income Based System (GIBS).

A business environment similar to home

While the Ministry of Defence and Gibraltar government were once the primary economic drivers in Gibraltar, the economy has since diversified. There are plenty of opportunities in a wealth of industries, including financial services, IT, legal services and accounting. The online gambling industry is another one of the top industry players employing a significant percentage of expats living in Gibraltar.  

Since Gibraltar uses the same employment systems as the United Kingdom, all contracts are in English, although you will see lower salaries than you would in Britain. Unlike working across the border in Spain, you will find professional opportunities that will not require you to speak Spanish. The working hours and conditions will be similar to the UK, even if the wages are lower depending on the industry and position.  

Appealing residency options 

British Nationals are able to come to Gibraltar to live and work subject to complying with certain administrative requirements. The territory has long been a proud cultural melting pot, with the Department of Employment issuing work permits to people who do not hold a British passport. There are two main types of residency applications:

  • Category 2 tax residence.
  • High Executive Possessing Specialist Skills (HEPSS).

Quality of life

Gibraltar boasts a Mediterranean climate that sees hot, dry summers and lows of around 11°C in winter. This roughly translates to over 300 days of sunshine a year. The lush vegetation of the Rock of Gibraltar paired with the many beaches means you’ll have countless opportunities to enjoy outdoor activities like hiking and water sports. There are also vibrant bars and restaurants where you can enjoy socialising with a bite to eat. There’s no doubt about it: the quality of life in Gibraltar is high.

living in Gibraltar pros and cons

Keep in mind: there’s a high cost of living in Gibraltar

The one thing you must take into consideration when living in Gibraltar as an expat is the high cost of living. Given the limited amount of space and the high demand, the prices for some rentals could reach London levels. However, you will be able to find a rental property to fit your budget. Most of the buildings where you rent a flat have shared facilities such as swimming pools and laundry rooms. While it is more expensive to live in Gibraltar, it’s one of the wealthiest nations on Earth and offers a fantastic quality of life for Gibraltarians and its residents. 

Ready to make the move to Gibraltar?

Entrust your relocation to the experts at Europe Emirates Group. Our friendly team will be at your complete disposal to answer any questions you may have – like how much money do you need to live in Gibraltar? – and walk you through residency optionscompany formation requirements and any other immigration services you may require. Get in touch today.

Luxury and Lifestyle
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