LOW TAX RESIDENCE IN GIBRALTAR
Whilst personal taxation rates in Gibraltar are generally not significantly lower than in many “onshore” jurisdictions, establishing residency in Gibraltar can provide significant fiscal and lifestyle advantages when done as a Category 2 Individual. Brief details of the scheme are set out below and include:-
* Maximum annual tax payable under £26,000.
* Minimum annual tax payable of £20,000 (this is subject to review as a result of litigation last year which puts in doubt that any minimum amount can be due. Please ask us for details).
* No requirement to disclose worldwide income (spouse & family income can be included)
* No minimum physical presence to retain residency.
Under Category 2 rules, you are subject to a cap on your tax liability with income tax payable only on the first £70,000 of taxable income which arises in, or is remitted to, Gibraltar, meaning a maximum annual tax liability of £26,000 or less. Taxable income does not include capital gains, gifts, income from savings though the intention of the scheme is that the Income Tax Office should receive a minimum annual tax payment of approximately £20,000 applicable (on a pro rata temporis basis for the first year of arrival).
For qualifying applicants, residence in Gibraltar may represent an invaluable opportunity to effect sustainable estate planning – often by co-ordination with specialist professionals in the home jurisdiction.
Requirements for eligibility
For you to become a Category 2 resident in Gibraltar, you must:
* have a minimum net worth of £2 million
* have exclusive use of approved property in Gibraltar. (purchased or rented. No minimum period of occupation on the part of the Category II Individual is required)
* not undertake any Gibraltar business activities that compete with local entities
How Governor’s Street Chambers can assist
We can help by liaising with the Finance Centre in order to obtain either a pro forma or a final approval of your Cat 2 Application. We can also assist in the pre-selection of approved accommodation and the preparation of necessary materials in order to demonstrate your eligibility for the Category 2 status. We are ideally positioned to effect introductions to a range of commercial and professional services which you may need, including:-
Estate Agents / Property Managers
Auditors/ Chartered Accountants
Professional Trustees and Company Managers.
Companies specialising in the expatriating of pension funds.