Gibraltar Special Taxation for Individuals

As well as advising on standard issues relating to Gibraltar’s tax regime we can assist overseas individuals and businesses to relocate to Gibraltar. We have no links with financial services providers and offer totally independent legal advice and second opinions.

With no capital gains, VAT, inheritance or wealth taxes, added to various tax incentives and full membership of the EU allowing the passporting of financial services across Europe, Gibraltar presents a myriad of tax planning opportunities to companies, investors and private individuals alike.

However, the residency and domiciliation issues usually found at the centre of every offshore tax planning exercise require careful attention. Charles A. Gomez & Co. have the necessary expertise to help you avoid the pitfalls of redomiciliation and ensure that your tax planning structure is truly effective. 

Category 2 Individuals

For those in the know, Gibraltar presents an exciting opportunity to High Net-Worth Individuals based in other jurisdictions: Category 2 Status will afford you not only a capped liability on your declared income but also the chance to live and experience the Mediterranean way of life in Gibraltar and the neighbouring Costa Del Sol. 

Category 2 Status is achieved via an application to the Government of Gibraltar and affords the successful applicant with a maximum cap of £70,000 on his or her taxable income. This means that no income tax will be payable in Gibraltar on declared income over and above £70,000. Applying the prevalent tax rates in Gibraltar this represents a maximum income tax bill of just under £26,000 per annum. Your spouse and any dependents under 18 years of age can also be added to your Status and enjoy the same tax advantages.

Not everyone qualifies for Category 2 Status and there are certain restrictions as to employment and trade in Gibraltar, as well as to previous residency within the jurisdiction. The successful applicant will also have to prove that he or she has sufficient net wealth and has a property (either purchased or rented) of a specific standard for his or her exclusive use in Gibraltar.

We offer a complete package as regards your Category 2 Application:

  1. We can offer help on all matters relating to the required purchase or rental of property in Gibraltar (we have vast local experience as regards property and conveyancing in Gibraltar).

  2. Liaise with the Government Finance Department on all matters regarding your application.

  3. Collate and process all the necessary documentation for the Category 2 Application.

  4. Once successfully installed as a Category 2 Individual we will also complete your annual income tax returns, ensure the renewal of your status and obtain your Gibraltar residency card. Contact Us.

HEPSS

Category 2 Status is not suitable for those wishing to work within Gibraltar. However, the new High Executive Possessing Specialist Skills (HEPSS) Status caters for professionals with specialist skills that are intending to relocate to Gibraltar. 

The tax advantages afforded to HEPSS individuals are similar to Category 2 Status and are also based on a maximum cap on taxable income. As such, no matter how much the HEPSS individual earns in Gibraltar, he or she will only be taxed on the first £100,000 of income. The HEPSS individual is charged on the gross income based system which affords an effective tax rate of 27.5%, meaning that the maximum amount of income tax that a HEPSS individual will pay in Gibraltar is £27,500 per annum.

As with Category 2 Status, there are restrictions as to who can qualify. In summary, a viable HEPSS individual should possess skills that are not readily available in Gibraltar, earn more than £100,000 per annum, have not been resident in Gibraltar in the three years prior to the application and live in approved accommodation within Gibraltar (as explained in the context of Category 2 individuals above).

The application process for HEPSS status is highly analogous to the Category 2 Application outlined above and we offer the same all inclusive service to our HEPSS applicants as we do for those clients seeking Category 2 Status.

For more information please contact us on 200 74998 or email info@gomezco.gi

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