What is Category 2 Residence in Gibraltar?

May 25, 2021

Category 2 is a tax regime in Gibraltar for high net worth individuals who have net assets of £2 Million or more.

It allows individuals to become resident of Gibraltar but there is no minimum days required for the regime. However, individuals must ensure they do not spend too long in other countries to become resident there.

In Gibraltar, there is no Inheritance Tax, no Capital Gains Tax, no Withholding Tax and no VAT (currently, although this is likely to change shortly).

Corporation tax is 10% on income which is accrued and derived within Gibraltar and personal tax is capped at 28%.

Under the Category 2 regime, tax is capped on your first £80,000 income so the maximum tax payable is just under £28,000 a year on your worldwide income.

If individuals conduct business in Gibraltar then any income generated would be taxable in addition to this.

So what is needed to proceed:

  • you must rent or buy a property which qualifies as a category 2 property. For an individual, a minimum of 60m2 is required. The property cannot be sublet under any circumstance. We can assist by introducing you to estate agents.
  • you must have private medical insurance which includes Gibraltar. We can help source this if required.
  • you must have evidence that your net assets are greater than £2M. This can be a letter from your accountant with copies of documentation and valuations to support this.
  • a reference from a lawyer or accountant
  • a bank reference
  • a CV or career overview
  • your passport copy

We guide you through the whole process.

Email: contactus@abacus.gi for further information.

By Phil Cartwright