The Gibraltar EU-UK Treaty: Opportunities for HNWIs

In the first of a series of articles, Grahame Jackson, Chloe Oppenheimer, Jesse Monteverde, and Alex Ellul of Hassans’ Tax Advisory Team discuss the benefits of Gibraltar for HNWIs 

In an increasingly unstable world, the Gibraltar EU-UK Treaty (“the Treaty”) demonstrates Gibraltar’s enduring security and prosperity. The Treaty gives High Net Worth Individuals (HNWIs) and their families another reason to make the Rock at the edge of Europe their new home.

Whilst other hubs for HNWIs face upheaval, the Treaty brings certainty to Gibraltar by securing a future relationship with the EU and the prosperity of the region. The key benefit is that Gibraltar residents who are in possession of a Gibraltar residence permit will enjoy fluidity of movement at the border with Spain, allowing people to cross freely into the Schengen Area without being subject to the Entry/Exit System (EES). They will also be exempt from the incoming European Travel Information and Authorisation System (ETIAS). If they wish to stay longer, they can spend up to 90 days out of any 180-day period in the Schengen Area visa-free. They will be able to enter the Schengen Area as if they were EU residents, bypassing lengthy queues. 

Competitive residence schemes such as “Category 2 Status” provide an attractive gateway to residency for HNWIs and their families. Hassans has extensive experience and know-how in steering Category 2 applications to completion, and are always on hand to provide assistance with property opportunities, tax returns, and other services required by those with substantial wealth. 

For those who aren’t familiar with Category 2, or “Cat 2” Status, it is an attractive and very popular tax regime that is available to HNWIs, which currently caps the holder’s annual tax liability on their worldwide income to a maximum of £44,740. More information on Cat 2 Status can be found at  Category 2 Status in Gibraltar | Hassans International. 

HNWIs can rely on reputable service providers with which to conduct their financial affairs as Gibraltar is home to several private banking institutions and branches. Banks in Gibraltar range from UK High Street names to gold standard Private Banks. 

Once here, HNWIs can expect a high quality of life and a bustling port town in which to spend their time, with the Treaty already bringing further investment to Gibraltar and the surrounding area. The new, circa €20 million Alcaidesa Marina all-in-one complex, opening just minutes from the border, is a concrete example of this investment. Greater tourist footfall is also likely to stimulate the local hospitality scene, with exciting high-end restaurant projects in the works and global brands already moving to our high street. 

For those wishing to travel further afield, the Treaty opens up the possibility of flights to and from Gibraltar from across the EU for the first time in addition to the existing, regular flights to London, Bristol, and Manchester, which provides HNWIs easy access to Europe.

Many HNWIs and family offices have already based themselves in Gibraltar on these strengths, and the Treaty provides even more reason to do so. The continuity of Gibraltar’s UK-based Common Law framework, the certainty of the Treaty, coupled with our robust regulatory framework and friendly business environment should put Gibraltar at the top of the list for HNWIs looking for a solid Rock to call home in these uncertain times.  

For more information about the Treaty, listen to the latest episode of our podcast series, Keeping It Civil, hosted by the Tax Advisory Team.

You can contact the Tax Advisory Team here

Note: The CAT 2 rules are currently being reviewed by the Government of Gibraltar. We expect new rules over the coming weeks. Watch this space!