Thinking about moving to Gibraltar?

Thinking of moving to Gibraltar – you won’t be disappointed. Gibraltar has a fantastic balance between work, rest and play. Moving to Gibraltar requires you and your family to become residents. We can assist you with the many formalities and paperwork that this involves. Contact us to explore what we can do for you. Our experience will benefit you in the following areas:

  • Permits
  • Schooling
  • Health Care
  • Tax
  • Banking
  • Employment

Most people who move to Gibraltar elect to be ordinary tax residents this may be the most tax-efficient option. In broad terms, the Income Tax is 25% progressive, but there are allowances. There is no Capital Gains Tax or Inheritance Tax.

There are other residency options available that we can advise on.

HEPSS Residency

This option best suits our professional clients who are moving to Gibraltar for work reasons. HEPSS is an acronym for “High Executive Possessing Specialist Skills,” a residency type introduced by the Gibraltar Government to attract executives with specialist skills to work and live here.

If successfully granted, the HEPSS resident Tax will have their worldwide income capped at £160,000 under the Gross Income Based System (GIB). This means the maximum income tax payable will be capped at £39,940.

To benefit from a HEPSS residency, there are a few key conditions which must be fulfilled before application, namely:

  • A HEPSS resident must by an executive individual with specialist skills, looking to relocate to Gibraltar. This is normally assessed as relevant skills not already present in Gibraltar which are deemed to be of exceptional economic value to the area. We can discuss the minutiae for further clarification
  • A HEPPS resident must earn more than £160,000
  • A HEPPS resident cannot have been resident in Gibraltar during the three years proceeding application
  • A HEPPS resident must own or rent a qualifying property in Gibraltar, not dissimilar Gibraltar Category 2 residents.

Category 2 Gibraltar Residency

A Category 2, or Cat 2 as it is known locally, the resident can protect their trading, earned or retirement income from the higher rates of taxation applicable in their original country of residence or the countries where the income is declared.

If successfully granted the certificate, a Cat 2 High Net Worth Individual has their tax liability on worldwide income capped at £80,000 income with a minimum tax of £32,000 and a maximum of £37,000. They also benefit from other tax benefits such as no Inheritance Tax or Capital Gains Tax.

There is no latent tax on gifting to family and no annual wealth tax on their assets. There will be no income tax applied to their interest savings and no taxation on dividends arising from companies quoted on the stock exchange. They also benefit from a flat rate of 2.5% if they wish to take a pension drawdown from a recognised Qualifying Recognised Overseas Pension Scheme (QROPS) or Qualifying Non-UK Pension Scheme (QNUPS).

Knightsbridge Incorporations has extensive experience with the application for Category 2 residency and have assisted our clients with both fulfilling the requirements of the application and understanding how far-reaching the benefits can be for their finances and family through ongoing residency planning.

A Category 2 resident does not have a minimum physical residence requirement in Gibraltar.

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