LOW TAX RESIDENCE IN GIBRALTAR

CATEGORY 2 RESIDENCE IN GIBRALTAR

Introduction
By obtaining this form of tax residency in Gibraltar, you can avoid being considered a tax resident in another higher tax jurisdiction. Advice should always be taken from an accountant or tax adviser in your current country of residence.

In essence, in order to be eligible for Category 2 Residence, you must be able to show two things: (1) that you have assets worth in excess of £2 Million (this can include property and shares) and (2) that you have approved residential accommodation in Gibraltar available for your exclusive use.

Proof of Wealth
Bank statements or letters from your bank manager or accountant would be acceptable as proof of your wealth. If you want to use non-monetary assets, then certified copies of title documentation and valuations from an accountant, surveyor or other qualified persons will be required.

Approved Property
You can either buy or rent a high quality property and this must be done within 2 months of Category 2 Status being granted. Prices vary and more information can be given on request.

Taxation
In practice you must pay a minimum of £14,000 a year in tax and you must complete a tax return every year and file this with the local Income Tax Authorities. Your maximum tax liability is around £20,000 in tax per annum and the amount you actually pay will depend on how much money you remit or is accrued by you in Gibraltar. As long as you do not remit more than £25,000 to Gibraltar per annum you will never pay more than £14,000 in tax per annum.

No matter how high your worldwide income is, the above will be the absolute maximum you will pay in tax in Gibraltar.

Time Taken
Normally, the Finance Centre Director replies to applications within a month.

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 Status under the same certificate as the principal person.

CATEGORY 3 RESIDENCE IN GIBRALTAR

Individuals employed in Gibraltar possessing specialist skills not available in Gibraltar may, subject to certain conditions, apply to the Finance Centre Director and obtain a certificate which sets the maximum amount of tax payable at £10,000 irrespective of their income.

CATEGORY 4 RESIDENCE IN GIBRALTAR

In order to meet the growing demand for middle managers in Gibraltar (i.e., those earning less than £50,000 p/a) a new category of residence has been introduced with a lower tax ceiling of £5,000 irrespective of income. The aim is to train local managers and for every such certificate issued a new job must be created for a local Gibraltarian.