In Gibraltar this form of residence is popularly known as Category 2 Residence. This enables a non-Gibraltar resident to obtain tax residence in Gibraltar avoiding thus paying personal taxes in his/her own higher tax jurisdiction.

In order to qualify for Category 2 Residence, it is necessary to establish two things: (1) ownership of assets, which can include property and shares, worth in excess of £2 Million and (2) the availability to the applicant of approved residential accommodation in Gibraltar for his/her exclusive use.

Proof of Wealth

Bank statements or letters from a bank manager or accountant are acceptable as proof of wealth. Non-monetary assets such as shares and property are acceptable upon production of suitable documentary evidence of value such as an accountant's valuation or surveyor's report.

Approved Property

A residential property approved by the Finance Centre Director must be purchased or rented within two months of being granted Category 2 Residence.


The amount of tax payable to the Gibraltar Government ranges between £18,000 minimum and approximately £22,000 per annum maximum. The precise amount of tax will depend upon: (i) how much money is remitted to the applicant in Gibraltar and (ii) the amount of taxable income earned by the applicant within Gibraltar in each financial year.

As long as such remittances and income earned do not exceed £50,000 per annum, no more than the minimum tax of £18,000 will be payable. Under no circumstances will tax in excess of the said maximum amount £22,000 be payable in Gibraltar.

The tax year starts on 1st June and a return needs to be filed annually with the local Income Tax Authorities.

Application Procedure

The following documents must be produced..

  1. Documentation showing wealth in excess of £2 Million.

  2. A character reference from a bank and a second one from a lawyer, accountant or other bank.

  3. A CV documenting the source of the applicant's wealth.

  4. An application form which we will provide.

A non-refundable application fee of £1,000 is payable to the Gibraltar Government.

Spouses & Children

There is provision in the law to allow spouses and children (under 18 or in full time education) to be granted Category 2 Residence under the same certificate as the principal applicant.

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.