What is Category 2 Status?
Category 2 (Cat 2), officially known as Qualifying Individual Status, is Gibraltar's specialist tax regime for high net worth individuals wishing to establish tax residence in Gibraltar.
Eligible individuals are taxed only on the first £118,000 of assessable income, resulting in a capped annual tax liability. Under the current tax rates, the minimum annual liability is £37,000, with a maximum of approximately £44,740.
Who can apply?
To qualify for Category 2 status, applicants must satisfy a number of requirements, including:
- Approval by Gibraltar Finance.
- Approved residential accommodation in Gibraltar for their exclusive use throughout the year.
- Evidence of sufficient financial resources.
- Private medical insurance for themselves and any dependants.
- Supporting documentation including professional references, proof of identity and evidence of financial standing.
2026 Changes to Category 2
Following the Government's 2026 Budget announcements, the Category 2 regime has been updated for new applicants.
Key changes include:
- The minimum net wealth requirement for new applicants has increased from £2 million to £5 million.
- The application fee has increased to £5,000.
- Existing Category 2 certificate holders are unaffected by the new net wealth requirement.
- Category 2 status does not provide entitlement to publicly funded healthcare or education.
- Applicants must continue to satisfy the requirements of the regime in order to maintain their status and residency.
Property Requirement
Applicants must own or rent approved residential accommodation in Gibraltar that is available exclusively for their use throughout the year. The property must meet the standards required by Gibraltar Finance before approval is granted.
Tax Benefits
In addition to the capped income tax liability, Gibraltar does not levy:
- Capital Gains Tax
- Wealth Tax
- Inheritance Tax
- Estate Duty
This makes Gibraltar one of Europe's most attractive jurisdictions for qualifying high net worth individuals.
Considering Category 2 Status?
NP Estates has extensive experience assisting clients searching for property suitable for Category 2 applications. We work alongside Gibraltar's leading tax advisers and legal professionals to help make the process as straightforward as possible.
Browse our latest Category 2 approved properties or contact our team to discuss your requirements.
NB: The above information has been extracted from the Gibraltar Government´s website with permission from the Director of the Finance Centre https://www.gibraltarfinance.gi/private-clients/tax-residence
The High Executive Possessing Specialist Skills (HEPSS) programme is a Gibraltar tax regime designed to attract senior executives and highly skilled professionals relocating to Gibraltar for approved employment.
Eligible individuals are taxed only on the first £160,000 of assessable employment income, making Gibraltar an attractive destination for qualifying professionals. To be eligible, applicants must possess specialist skills that are not readily available in Gibraltar, hold approved employment with a qualifying Gibraltar employer, and occupy approved residential accommodation for their exclusive use.
HEPSS status is granted subject to approval by the relevant authorities and remains linked to the qualifying employment. Applicants must continue to satisfy the requirements of the scheme throughout their period of approval.
If you are relocating to Gibraltar under the HEPSS programme, NP Estates can help you find suitable residential accommodation and introduce you to trusted legal and tax professionals to assist with your application.
NB. For any further information on the HEPSS status log into https://www.gibraltar.gov.gi or contact the Finance Centre.