Tax Residence

Why Choose Gibraltar?

There are a number of reasons why Gibraltar is regarded as an appropriate centre for the personal and business activities of high net worth individuals and family offices.

  • Gibraltar is a British Overseas Territory and a self-governing and self-financing parliamentary democracy within the European Union (EU).
  • Guaranteed access to UK’s financial services sector
  • Modern legislation
  • Gibraltar is physically part of Europe; it is not an island and is located at the southernmost tip of Spain, allowing easy access to Spain, Portugal and beyond.
  • With a state-of-the art international airport Gibraltar offers flights to and from various UK destinations on a daily basis.
  • It offers a vibrant property market with an excellent choice of high quality housing.
  • Gibraltar provides diverse marina facilities capable of berthing yachts.
  • It is a Mediterranean territory and as such enjoys excellent weather and lifestyle.
  • Its EU membership provides passporting rights in banking, investment services, insurance, insurance mediation and reinsurance across all 30 EU and European Economic Area (EEA) countries and access to a market of 500m people.
  • Gibraltar’s GDP figure for 2017/18 is estimated at £2.17 Billion and the GDP for 2018/19 is forecast at £2.35 Billion and the Government has maintained a budget surplus throughout the recent economic slowdown that has affected much of the developed world.
  • Gibraltar operates a low tax regime including a tax residency scheme for individuals with net assets in excess of £2m (conditions apply) capping the maximum personal income tax at £44,740.
  • No VAT, no capital gains tax, no inheritance tax
  • Its currency is the Gibraltar pound which is at par with UK sterling; Gibraltar is not a Eurozone country.


Income Tax Act 2010: Qualifying (Category 2) Individuals Rules 2004. Available online at Minimum net asset requirement: Applicant must possess net assets to a value of at least £2m


Applied to first £118,000 of taxable income only. Minimum amount of annual tax payable is £37,000, or £3,083.33 for each complete month or part month for which the certificate is in force. Maximum is circa £44,740.00 (or £3,728.33 per month or part month).

Prohibited activities

The individual must undertake not to engage in any trade, business or employment in Gibraltar other than duties incidental to any trade, business or employment based outside Gibraltar. However, this restriction is currently under review and may result in a legislative amendment.

Doing Business in Gibraltar

In the interim, as a general rule, Category 2 individuals are now permitted to invest in or do business in Gibraltar so long as any assessable income is subject to taxation. However, the specifics of the business activities need to be brought to the attention of the Finance Centre Director Prior to application The rules restrict an individual from having been a resident or employed in Gibraltar prior to application for a Category 2 status. Further, he or she must not have been engaged in a trade, business or employment in Gibraltar other than duties incidental to any trade, business or employment based outside Gibraltar.


The spouse or child of a Category 2 individual may elect to benefit from the terms of the same certificate.

Length of stay

There is no specific legal requirement as regards the length of stay in any particular year. However, the Category 2 certificate will not shield any individual from becoming tax residence in a different country.

Property requirement

The individual is required to either purchase or rent an apartment in Gibraltar and have it available for his or her exclusive use throughout the year. The accommodation must be of a certain standard appropriate to sustaining the lifestyle of a wealthy individual.

Property approval application

The applicant is required to submit a ‘Residential Accommodation Approval’ form, available to download below for approval by the Finance Centre Director. At the time of application or within two months of the issue of the certificate, the individual is required to submit a copy of the deed of title or of the rental contract.


The applicant is required to submit two character references from recognised and established professionals (one of which must be from a bank and the other from a law or accountancy firm), a copy of his or her passport, a curriculum vitae and proof of his financial standing. Note: The Finance Centre Director may in individual cases require the applicant to submit further information before determining the application. The applicant is advised to seek professional advice. Application form available for download below. Application fee £1,100 (non-refundable).

Cat 2 Application Form