GIBRALTAR CAT 2 RESIDENCYGibraltar offers attractive tax and estate planning opportunities for individuals seeking to optimise the tax efficiency of their arrangements and/or protect their assets from foreign taxation.
An overview of the procedure and rules for becoming Gibraltar tax resident under Category 2 Rules is summarised below.
The main benefit of obtaining Category 2 status in Gibraltar is that maximum assessable income is capped at £80,000 per annum, resulting in maximum personal income tax payable of £27,560 per annum for tax year 2016/2017. Personal worldwide income in excess of £80,000 for the year under assessment is not subject to income tax in Gibraltar. Moreover, tax only applies to any income remitted to Gibraltar.
The income tax calculation for Category 2 Individuals for tax year 2016/2017 is as follows:
£4,000 x 14% = £560
£12,000 x 17% = £2,040
£64,000 x 39% = £24,960
Total tax payable in Gibraltar £27,560
There is no Wealth Tax, Capital Gains Tax, Inheritance Tax, VAT or Gift Tax in Gibraltar. A flat rate of 2.5% applies to pension income from a QROPS or QNUPS.
We have a team of experts that have been assisting our client’s with their residency requirements in Gibraltar for many years. Our local presence, knowledge and professionalism enable us to provide you with a hand-held service throughout the entire application process.
During the application, we will provide guidance on matters such as:
Completion and submission of all relevant application forms to the Finance Centre Director
Obtaining a Gibraltar Identification Card and driving licence (if required)
Finding a suitable property to rent or purchase that meets the eligibility criteria
Local education for your children
Providing contacts with local and international banks
Assistance with your relocation to Gibraltar