If you are considering relocation to Gibraltar for tax efficiency benefits, Carte Blanche, working alongside our highly reputable partners, can provide Relocation Services for the process from start to finish. Contact [email protected] for details
Residing in Gibraltar
A guide for high net worth individuals
Gibraltar presents a unique and attractive personal tax regime for high net worth individuals who wish to establish residency and ensure their wealth is preserved in a safe and secure tax efficient jurisdiction. It also offers many lifestyle advantages and enjoys a close relationship with the UK, as well as a beneficial geographical connection to mainland Europe and Africa.
STM Residency Solutions Limited, working together with our sister company, STM Fiscalis Limited can assist in providing you with a number of potential tax planning opportunities.
In recent years, Gibraltar has also become popular with High Net Worth Individuals looking for a low tax jurisdiction in which to relocate, and they are increasingly taking advantage of the fiscal and lifestyle advantages attainable by establishing residency in Gibraltar.
Key `Category 2´ Tax Benefits
Under the ‘Category 2’ rules individuals are subject to a cap on their tax liability with income tax payable only on the first £80,000 of taxable income which arises in or is remitted to Gibraltar. This gives rise to a maximum annual tax liability of £28,360. As taxable income does not include, for example, capital gains, gifts or income from savings it is possible to lower the tax liability further.
However, a minimum annual tax liability of £22,000 is applied which is pro-rated in year of arrival. The Gibraltar tax year runs from 1 July to 30 June.
If you are eligible for the status known as ‘Category 2’, the benefits are as follows:
- A cap on tax liability, meaning that income tax is only payable on the first £80,000 of taxable income. Even if the individual earns a million or more, the maximum annual tax liability of £27,560. A minimum of £22,000 is however, also applied.
- There is no minimum physical Gibraltar presence requirement.
In order to become a ‘Category 2’ resident in Gibraltar an applicant must have:
- A minimum net wealth of £2 million
- Exclusive use of approved property which may either be bought or rented
In addition to the successful tourist, shipping and construction trades, the Financial Services sector is a key pillar of Gibraltar’s economy.
Gibraltar, as an International Financial Services centre, has seen this sector of the economy grow in recent years. With the Government’s commitment to making Gibraltar an attractive base from which to do business internationally, it is anticipated that this sector will continue to flourish.
The Government’s encouragement of e-business has been reflected in growth in the technology sector, with a number of large betting and gaming companies taking advantage of the favourable fiscal environment and high quality telecommunications infrastructure.
Gibraltar services daily flights to and from various UK airports. Across the border in Spain, both Malaga and Jerez airport are approximately 1.5 hours drive east from the Spanish border and service most main countries.
Summary of Benefits
- No capital taxes
- No sales taxes
- Maximum £28,360 annual tax for ‘Category 2’ residents
- No minimum presence required
- Good economy and infrastructure
- Warm climate in an excellent EU location
- Vibrant housing market
- Permitted Activities
How do I apply?
Carte Blanche only work with highly reputable and experienced professionals in the field. We can arrange a concierge service to assist and guide you on the complete application process. Our service will include arranging any private jet charter, greeting you at the Airport, scheduling a day of meetings with relevant Government officials, arranging property viewings, school viewings where required, arranging meetings with wealth managers to discuss business transfers and investment etc.