Gibraltar's New Residence Criteria: What the Reform Means for Employers, Applicants and Existing Residents

KEY FACTS

• New residence applications are assessed against published criteria from 17 June 2026
• Existing Gibraltar identity card holders and persons resident before 6 October 2025 are not affected
• Employed applicants need a qualifying salary at the average gross annual earnings, currently £37,500
• Applicants must be aged 55 or under, subject to ministerial discretion
• Application fee £250; annual renewal fee £100
• Benefits extend to the applicant, spouse and children, and do not extend to parents
• Full Gibraltarian status now follows 20 years of residence for new applicants

The Government of Gibraltar has published the criteria that will govern applications for residence in Gibraltar, completing the reform first signalled when new applications were suspended on 6 October 2025. The framework grounds the right to reside in genuine economic contribution, compliance with the legislation that applies to anyone living and working in Gibraltar, and the protection and long-term sustainability of public services, confirming the direction that the October suspension and the Gibraltarian Status and Immigration (Amendment) Bill 2025 had already set.

The reform does not disturb the position of those already settled here. It does not apply to current holders of Gibraltar identity cards, nor to persons who obtained residence before 6 October 2025, who remain subject to the regime applicable on that date with their existing route to Gibraltarian status preserved. Persons who were in Gibraltar before 6 October 2025 without a residence card fall within the new regime, save where there is good reason for discretion to permit an application under the previous rules.

For applicants relying on employment, the central requirement is a contract whose gross annual earnings are at least the average gross annual earnings in Gibraltar, taken from the Employment Survey Report and currently set at £37,500, rounded up to the nearest £500 and updated each year by notice in the first Gazette of the financial year. The employing business must have traded in or from Gibraltar for at least a year, be fully registered and licensed under the Fair Trading Act or the relevant regulatory authority, and have its payments and filings up to date. Applicants must also evidence the rental or purchase of a property for use as their primary residence, where a rental is for a minimum of twelve months and is not a holiday let, and a purchased property is kept available for the applicant's exclusive use and is not let during the permit. A residence permit holder already living on a vessel may continue to do so, while no new applications will be accepted from persons living on vessels. Applicants must be aged 55 or under and must provide an official vetting form from their country of origin.

The accompanying notes give the framework its flexibility. Where a business has traded for less than a year, or where an individual is registering as self-employed for the first time, a deposit is required equivalent to the first year of combined employee and employer social insurance together with the tax payable on the average gross annual earnings at 25 per cent, returnable on cessation of business and subject to a discretion held by the Minister for Business to waive the amount due in defined circumstances. Applicants under 30 may have the salary threshold waived where the employer pays tax and social insurance as if the salary were at the threshold, in each year until the threshold is reached. Anti-avoidance measures will flag downward variations to a contract so that the conditions on which a permit was granted continue to be met, and a parallel mechanism will monitor whether a business keeps its payments and filings current. A permit is renewed annually on confirmation that the conditions are still satisfied, lapses where tax or social insurance payments stop unless the employee can show that deductions were made but not paid over by the employer, and lapses eight weeks after a Notice of Termination of Terms of Engagement is filed unless the Director of Immigration and Home Affairs is satisfied that a new contract is in place.

The benefits attaching to residence are defined deliberately and narrowly. They cover the Group Practice Medical Scheme for the individual, spouse and children, where children are those under 18 or in tertiary education, and they expressly do not extend to the parents of the applicant. Children under 18 are entitled to schooling in Gibraltar, and a scholarship becomes available for a dependent child after ten years of continuous lawful residence with uninterrupted payment of tax and social insurance. Residence does not carry entitlement to Elderly Residential Care, domiciliary care, public and affordable housing, berths in the Small Boats Marina or any other government berthing scheme, or other social benefits, which become available to those who are British citizens and have completed 20 years of residence and thereby qualify for Gibraltarian status. Students of the University of Gibraltar are entitled to the benefits arising from residence for the duration of their studies provided the Group Practice Medical Scheme contribution of £470 per annum is paid, with the same entitlement and contribution extending to a spouse and children under 18. An unmarried partner of a person holding Gibraltarian status may reside where a durable relationship of at least two years is evidenced, and an applicant who wishes a spouse to reside must pay an amount equivalent to the maximum employee social insurance contribution on the spouse's behalf, with an applicant accompanied only by a spouse and children. Residing in Gibraltar without a permit of residence may attract a fine of up to £2,500. The application fee is set at £250 and the renewal fee at £100, and the Government reserves the right to refuse, suspend or revoke a permit where an individual is not of good standing or on grounds of public policy, public health or public security.

These criteria operate alongside the change to the route to permanent settlement. A new applicant who applies for residence after 6 October 2025 becomes entitled to register for Gibraltarian status after contributing to the economy for 20 years, while a person who held a valid Civilian Registration Card or Permit of Residence and was in Gibraltar before that date is required to have been resident for ten years. The timing reflects the wider context in which residence in Gibraltar has become significantly more attractive, with the UK and EU treaty attaching prospective free movement in the Schengen area to Gibraltar residence and introducing a notification role for Spain before permits are issued or renewed. The surge in applications that followed the treaty announcement, and the concern that residence could be acquired without a real and continuing connection to Gibraltar, are the conditions the reform is designed to address.

The reform is consistent with the concern the Government identified in October 2025, that the residence regime was exposed to abuse and required recalibration so that residence reflects sustained economic contribution rather than the prospect of onward mobility. Read against that objective the criteria are coherent and proportionate, and the points at which they will most affect real decisions are the discretionary gateways: the Chief Minister's discretion to admit applicants over 55 whose residence is in Gibraltar's interests, the discretion to permit an application under the previous regime for those present before 6 October 2025 without a card, and the discretion of the Minister for Business over the new-business deposit. Employers recruiting from outside Gibraltar should plan on the salary threshold and on keeping their own registrations, filings and payments current, since the eligibility of a prospective employee now depends on the standing of the employer. Individuals whose circumstances sit close to the age limit, the salary threshold or the transitional cut-off should take advice on the discretionary routes before committing to a move.

Hassans advises employers, families and individuals on residence, work permits, Category 2 and HEPSS status, and on the transitional questions that arise from this reform. To discuss how the new criteria affect a specific application or recruitment plan, contact our Private Client team.

This article is for general information and does not constitute legal advice. It reflects the residence policy as published on 17 June 2026; implementing legislation and guidance may follow and should be checked. For advice on a particular matter, please contact Hassans.

Frequently asked questions

What are the new Gibraltar residence rules in 2026? 

Residence applications are now assessed against published criteria that require a qualifying salary, a genuine local employer, suitable accommodation, an age limit of 55, and vetting. They apply to new applicants and not to existing identity card holders or persons resident before 6 October 2025.

What salary do I need for Gibraltar residency through employment? 

The contract must pay at least the average gross annual earnings in Gibraltar, currently £37,500, updated annually in the Gazette. Applicants under 30 may have this waived where the employer pays tax and social insurance as if the threshold were met.

Does the new policy affect people who already live in Gibraltar? 

No. Holders of Gibraltar identity cards and persons who obtained residence before 6 October 2025 keep their existing position and their route to Gibraltarian status.

Can someone over 55 still obtain residence? 

Yes, at the Chief Minister's discretion where the residence is in Gibraltar's interests. A person over 55 granted residence has no entitlement to Elderly Residential Services until they obtain Gibraltarian status.

How much are the new fees? 

The application fee is £250 and the annual renewal fee is £100. Residing without a permit may attract a fine of up to £2,500.

How long until I can obtain Gibraltarian status? 

Twenty years of residence for new applicants after 6 October 2025, and ten years for those who held a valid card and were in Gibraltar before that date.