Expat taxes in Gibraltar

Posted: June 14th, 2014 GibraltarRock of Gibraltar

Given the importance of the offshore sector to Gibraltar's economy, but with its very limited local labour pool, the government has traditionally offered tax schemes to attract highly-qualified expat workers and high-net-worth individuals to fill senior management roles or to invest in the jurisdiction. The government currently offers two such schemes, outlined below:

Qualifying (Category Two) Individuals are liable to income tax on the first GIP80,000 (GBP80,000) of assessable income only. However, the minimum amount of tax payable by an HNWI in any one year of assessment under this scheme is GIP22,000.

Applicants must have available for their exclusive use approved residential accommodation in Gibraltar. The Government would also be looking to ensure that the individual has sufficient means to maintain himself and his family. The applicant will therefore need to provide certain evidence of wealth, although it is not necessary for the individual to declare his worldwide wealth or earnings. The individual would also need to show that he or she has private medical insurance to cover both him/herself and or his/her family whilst residing in Gibraltar. Additionally, an applicant must not have been resident in Gibraltar in the previous five years.

A new category called the ‘High Executive Possessing Specialist Skills’ (HEPSS) scheme was established for existing Category Three (since abolished) holders who earn more than GBP120,000 per annum and for new applicants who possess skills not available in Gibraltar and, in the Government’s opinion, are of particular economic value to Gibraltar, who will occupy a high executive or senior management position.

Under the HAPSS scheme, tax is payable only on the first GIP120,000 of assessable income under the Gross Income Based System. HEPSS applicants must also satisfy residential accommodation and residency conditions.

Qualifying Categories 3 and 4 were open to expatriate individuals of Exempt or Qualifying Companies and set the tax payable by the individual at GBP15,000, irrespective of their taxable income, but were abolished in 2007.

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