In February 1992 Gibraltar introduced new low tax limits for high net worth individuals ('HNWI') to encourage such individuals to become resident in Gibraltar.

HNWIs will pay tax on the first £45,000 of assessable income which results in a maximum tax charge of £20,000 and in any event may not be less that £10,000. Only income arising in or remitted to Gibraltar is taxable.


For an individual to qualify as an HNWI he/she must fulfill the following conditions:

  • A HNWI must have available for his exclusive use for a period of not less than 7 months approved residential accommodation in Gibraltar.
  • The individual must reside a minimum of 30 non- consecutive days in Gibraltar in the property referred to above during any year of assessment (July to June).
  • The individual is not otherwise resident in Gibraltar and has not been so resident in the preceding five years. (The Financial and Development Secretary may waive this requirement in certain circumstances.)


Apart from limiting one's tax liability to between £10,000 and £20,000 irrespective of the individual's income a HNWI would also benefit from the following:

  • A HNWI is exempted from Gibraltar Estate Duty.
  • A HNWI may continue to hold a Gibraltar tax exempt or qualifying company and income from such companies would only be taxable if received by the individual in Gibraltar.

This article is intended as a general guide to the offshore services available in Gibraltar, and should not replace individual professional advice. One should always ensure that professional advice is taken both in Gibraltar and in any other country affected by the offshore structure.