Gibraltar: Gibraltar Residency

If you are one of the many thousands of Britons considering moving to a more favourable tax regime to escape the increasingly higher burden of taxes falling on employees, business owners and those able to live off their invested wealth then you might well want to take a look at the benefits of moving to Gibraltar.

Gibraltar provides a unique offering for high net worth individuals seeking to establish residency. Enjoying a Mediterranean climate and situated at the most southerly point of the Iberian Peninsula this self governing British overseas territory has a robust and diversified economy and has emerged as a leading international financial centre within the European Union, complying with all EU directives and Regulations. Gibraltar has replaced its former tax exempt regime with an internationally competitive tax model and with its new fiscal regime it is fast becoming a favoured jurisdiction for businesses and "fiscal nomads" looking for legitimate ways to lower their tax bill in a properly regulated environment.

In the light of new information disclosure regimes and FATCA it is becoming more and more important to establish permanent residency in a favourable jurisdiction when it comes to personal tax planning. Certainly we have entered a new era of transparency where it is essential to put in place workable plans to mitigate tax rather than rely on outdated ideas of secrecy and avoidance.

So what are the benefits of becoming a Gibraltar tax resident?

For businesses Gibraltar has a 10% flat rate corporation tax and there is no VAT. For individuals there are two potential options for residency namely Category 2 (formerly HNWI) and Self Sufficiency.

Category 2 Status

Category 2 status works for individuals earning in excess of £120,000 and who can demonstrate a net worth of at least £2 million. Income tax payable, on worldwide income, is capped at £29,880 with a minimum tax payment due of £22,000. There is no Inheritance Tax, Capital Gains, Wealth Tax or Gift Tax and no taxation on the remittance of foreign capital. Furthermore there is no taxation on savings interest or dividends received from a recognized stock exchange nor income received from an occupational pension scheme. Once established there is no minimum physical presence required in Gibraltar to maintain category 2 status.

The £2M wealth requirement may take various forms although a key factor in a successful application is to demonstrate that the applicant has sufficient wealth to maintain himself and, if appropriate, his family. An approved residential property, which may be purchased or rented (although renting may raise a query over the permanancy of residence), must be maintained throughout the residency period and be available exclusively for the applicant's use.

In addition to restrictions relating to prior residency in Gibraltar, Category 2 applicants will not, ordinarily, be permitted to undertake economic activity in Gibraltar that would compete against locally based businesses. Private medical insurance is also required as well as professional references and curriculum vitae which form part of the application process. All applications are subject to the approval of the Director of the Finance Centre, part of the Ministry of Finance.

Self Sufficiency

For individuals who do not have earned income then there is an alternative route known as self sufficiency status where there is no income tax payable on qualifying income. There is no requirement to buy an approved property, buying or renting any accommodation in Gibraltar will suffice and the benefits already outlined for category 2 applicants will apply. A successful application for self sufficiency status requires the approval of the Director of the Finance Centre and whereas it is possible to switch from category 2 to self sufficiency status it is not possible to switch the other way.

Residency Process

At Fiduciary Wealth we offer a complete service to ensure that your change of residence will be as smooth as possible. We deal with the formal process of obtaining your residency documents. We also include our property sourcing and mortgage broking (where required) services both for property to buy or rent in Gibraltar including arranging suitable buildings and contents insurance, and also in Spain where many new Gibraltar residents will acquire a second home. In addition we will deal with all of the other financial issues a change of residency will require ensuring that you have suitable private medical cover to satisfy residency requirements and rearranging life and protection policies where necessary to ensure that these will be appropriate to meet your new circumstances.

One area where our expertise will certainly be required will be in assessing your pension provision and advising on the most tax efficient retirement options available to you as a Gibraltar resident as well as reviewing your investments to ensure that you make best use of the favourable tax regime.

If you are considering Gibraltar residency contact us now to see how we can help or if you wish to explore the potential advantages that a change of residency can make to your current financial position we will gladly meet with you to help you assess your options. On the other hand if you are already enjoying Gibraltar residency status and you want an independent review of your savings, investments and pensions please give us a call.

Of course you may be considering other options as well and our expertise includes advising on residency issues in Spain, Portugal and Malta.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions