Gibraltar operates residency programmes featuring generous tax incentives that are designed to attract high net worth individuals (Category 2) and executives possessing particular skills (HEPSS).
These incentives make Gibraltar an attractive base for suitably qualified individuals and their dependents or for retirees or entrepreneurs wishing to live in a tax-competitive jurisdiction.
Europe Emirates Group, through our team of partners, can manage the entire application process as well as provide introductions to the professional service providers you need, such as legal, real estate and relocation firms. We can also ensure that your tax planning is compliant from an international perspective.
Our local partners can further help you purchase private medical insurance. Private medical insurance that covers applicants and their dependents are part of the Gibraltar residency rules.
Under no circumstances can a Category 2 or HEPSS certificate holders obtain free healthcare from the Gibraltar Health Authority.
Gibraltar Qualifying (Category 2) Individuals Residency Rules
The Qualifying (Category 2) Individuals Rules 2004 provide for a well-established regime that limits income tax for high net worth individuals (HNWIs) wishing to reside in Gibraltar. To apply for a certificate, an individual must verify that he or she has a minimum net worth of £2 million and is of good character.
The holder of a Category 2 certificate is taxed in Gibraltar based on the average rates applicable under the gross income-based system, but only on the first £80,000 of assessable income. Any income above £80,000 is not subject to income tax in Gibraltar, irrespective of whether the income is remitted to Gibraltar. At current tax rates, the minimum annual tax liability is £22,000, and the maximum yearly tax liability is £27,560.
The individual must either purchase or rent suitable accommodation in Gibraltar and have it available for his or her exclusive use throughout the year. There is no specific legal requirement as regards the length of stay in any particular year, and the spouse or children of a Category 2 certificate holder may elect to benefit from the terms of the same certificate.
Only individuals who have not been a resident in Gibraltar during the previous five years of assessment are eligible to apply. As a general rule, Category 2 individuals are now permitted to invest in or do business in Gibraltar provided that any assessable income is subject to taxation. However, the Finance Centre Director must learn the specifics of the business activities before application.
Gibraltar High Executive Possessing Specialist Skills (HEPSS) Residency Rules
The Gibraltar government has also introduced a further category of tax residency to encourage the relocation of high earning executives with specialist skills that will promote and sustain an economic activity of particular economic value to Gibraltar.
The basic requirements in respect of applicants under the High Executive Possessing Specialist Skills (HEPSS) Rules 2008 Individual are:
Basic salary of over £120,000 per year
The specialist skills must not be available in Gibraltar
Availability of suitable residential accommodation (either rented or purchased) in Gibraltar for his or her exclusive use throughout the year
He or she must not have been resident in Gibraltar within the previous 36 months
A HEPSS certificate holder only pays tax under the gross income-based system on the first £120,000 of assessable income such that, at current tax rates, the tax payable from qualifying employment income caps out at £29,940.
An employer must prove to the Finance Centre Director that the appointment of a HEPSS applicant will promote and sustain the activity of particular economic value to Gibraltar and that he or she will earn more than £120,000.