The Government of Gibraltar introduced low tax limits in order to encourage wealthy individuals to establish a residence in Gibraltar. Such individuals known as Qualifying (Category Two) Individuals will pay tax on the first £80,000 of assessable income only and the amount of tax due and payable in any year of assessment shall be not less than £22,000.00.
An application is made to the Finance Centre Director for the issue of a certificate under the Qualifying (Category 2) Individual Rules under the Income Tax Ordinance. A £1,000 non-refundable application fee is payable and the application must be supported by two character references from recognised and established professionals (one must be from a bank and the other from a law or accountancy firm), a copy of his or her passport and a curriculum vitae.
In order for an individual to qualify as Qualifying (Category 2) Individual he must have approved residential accommodation available for his exclusive use in Gibraltar throughout the year.
The Government would also be looking to ensure that a Qualifying (Category 2) Individual has sufficient means to maintain himself and his family. They will therefore be looking for evidence of wealth although it is not necessary for the individual to declare his worldwide wealth or earnings. The Government would also be looking to ensure that the individual has private medical insurance to cover both him and his family whilst residing in Gibraltar.
No capital gains tax or estate duty
It is also worth noting that there is no capital gains tax or estate duty in Gibraltar.
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
Employees that possess high executive specialist skill who are able to apply for a special employment tax status (HEPSS) will pay tax only on the first £120,000.00 of gross income per annum which is currently £32,550.
This status is only available to individuals who possess skills not available in Gibraltar and who will occupy a high executive or senior management position, and who will earn more than £120,000.00 per annum of income in Gibraltar.
The applicant must not have been a resident in Gibraltar for thirty six months immediately prior to the year in which the application is made.
The qualifying applicant must require residential accommodation for their exclusive use in Gibraltar and approved by the Finance Centre Director.
The certificate is dependent on the employment of the individual within the same company so any change in employer will immediately cancel the certificate. It is also imperative that the individual maintains a good character that would not be damaging to the reputation of Gibraltar.
NB. For any further information on the HEPSS status log into https://www.gibraltar.gov.gi or contact the Finance Centre.