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GIBRALTAR CAT 2 RESIDENCY

Gibraltar 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.

TAX RESIDENCE

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
International tax
Assistance with your relocation to Gibraltar

RELATED CONTENT

Are you looking to re-locate abroad? Does the idea of a more permanent Mediterranean lifestyle beyond the confines of your holiday home sound appealing? Is this on your wish list but the conundrum of Brexit is making you feel uneasy? Gibraltar may offer the ideal residency solution.

Gibraltar: Best of Both Worlds  

Need support? Contact:

Lynette Pecino

BA (Hons) International Business Studies
ACIS Chartered Secretary

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Abacus Gibraltar