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Innovative and impartial international tax planning, company, trust and pensions services in Gibraltar for private clients, their businesses and their families.
Gibraltar Category 2 Status
A Guide for High Net Worth Individuals
An increasing number of High Net Worth Individuals (HNWIs) are taking advantage of the fiscal and lifestyle advantages attainable by establishing residency in Gibraltar.
These include a capped tax liability under the Category 2 rules, coupled with the benefits of Gibraltar being an international financial centre, with a mild Mediterranean climate thanks to its position at the southern tip of the Iberian Peninsula.
Key tax benefits*
- Capped tax liability based on £80,000 of taxable income (not applicable to Gibraltar rental income).
- Maximum annual tax payable is £29,880.
- Taxable income does not include, for example, capital gains, gifts or income from savings.
- Minimum annual tax payable of £22,000 (pro rata in years of arrival and departure).
- No requirement to disclose worldwide income.
- Spouse and family income may be included.
- No minimum physical presence requirement in order to retain residency.
- Figures for 2010/2011 tax year
Main requirements
In order to become a Category 2 resident in Gibraltar, you must meet the following conditions:
- have a minimum net wealth of £2 million
- have exclusive use of approved property in Gibraltar. The property must be of a certain standard and appropriate to sustain the lifestyle of you and your family. The property may either be bought or rented. Unlike other jurisdictions, there is no minimum physical presence requirement in order to be tax resident
- conform to the restrictions which apply if you have previously been resident or working in Gibraltar within the preceding five years
- not undertake any business activities that compete with local entities that derive their income from within Gibraltar
Category 2 status is awarded on the decision of the Finance Centre Director.
How we can help
STM Fidecs can assist with all matters relating to the obtaining of Category 2 Residency in Gibraltar and maximising its benefits together with obtaining the Gibraltar Civilian Registration Card and compliance matters.
For further information on the benefits of obtaining Category 2 Residency status in Gibraltar please email us or telephone us on Gibraltar (+350) 200 42686 and ask for a member of the International Tax Team.
