Contact Us

+350 20079000 info@hassans.gi

This data will only be used by Hassans for processing your query and for no other purpose. View our privacy policy

Residency and Cat 2 in Gibraltar

Selwyn Figueras
Partner

Part of Gibraltar’s compelling tax environment consists of what is known as the Gibraltar Category 2 tax residency status.  One of the High Net Worth Individual, or HNWI, solutions available in Gibraltar, the  Qualifying (Category 2) Individual Rules 2004 (the Rules) set out the conditions under which applications can be made to obtain a ‘Qualifying Certificate’ under the rules.

The key headlines of the Category 2 residency scheme in Gibraltar are that:

  • Qualifying individuals are liable to tax on worldwide income only on the first £105,000 of ‘assessable income’;
  • This maximum is, however, subject also to the payment of a minimum amount of £32,000 payable in each assessment year, irrespective of a qualifying individual’s income.

Category 2 is only available to individuals not currently resident in Gibraltar and who have not been resident in any of the previous five years of assessment may apply for a Qualifying Certificate.

Applications lie to the Finance Centre Director of Gibraltar and must be accompanied by two references (one of which must be from a bank) and a non-refundable fee of £1,000.  Applicants will usually be informed that the application has been successful within one or two weeks of the application being made. In order to be successful, the Applicant must have, for the exclusive use of himself and his family, approved residential accommodation in Gibraltar. Qualifying property is typically property at the higher end of the property market in Gibraltar, with many residential estates, in effect, automatically qualifying for the purposes of the rules.

Notwithstanding the residential status acquired by an individual who has obtained a Qualifying Certificate, such individual may make use of certain tax structures to assist in the planning of fiscal affairs.  These tax structures are usually only available to non-residents of Gibraltar.  Therefore, the use of a Gibraltar trust, which (under certain conditions) is not subject to taxation, may be available to such individuals.  These possibilities together with the fact that there is no capital gains tax, inheritance tax or estate duty in Gibraltar make the jurisdiction an attractive proposition to individuals able to fulfil the criteria required.

Advantages of Residence in Gibraltar

The Gibraltar proposition for high net worth individuals and their families is a compelling one.  Gibraltar is a constitutionally independent jurisdiction, offering state-of-the-art legal solutions for private clients, solutions offered against the backdrop of a financially robust, and politically stable environment.

“Gibraltar’s appeal as a place for High Net Worth individuals and their families to establish has been anchored on the security and stability of the Gibraltar proposition since the early 1990’s.  With solid and positive economic growth throughout, Gibraltar’s positioning as a financial services centre of excellence and the opportunities for access to the EU, and now the UK, this article will cover a number of the key areas of doing business in Gibraltar that matter to most.” For further details about all these benefits, visit our Gibraltar Residency – Tax benefits page.

Hassans International Law Firm limited – a leader in Private Client solutions in Gibraltar

As a leader in private client legal services in Gibraltar, Hassans benefits from specialist tax, private client, corporate and commercial teams enjoying extensive experience in the establishing of financing and asset holding corporate structures as well as private wealth and estate planning structures. Our clients include some of the world’s largest and most successful quality businesses and notable families. Hassans frequently acts for large multi-nationals in conjunction with global leading law firms and tax advisers in respect of intricate and complex inter-group restructurings. We also pride ourselves in being trusted advisors to notable ultra-high and high net worth families and individuals. We have excellent working relationships with the local authorities. Most of all, we are continually recognised for understanding our clients’ strategy and needs first, combining careful due diligence with world-class legal skills and professional execution, in order to properly serve your specific needs.

More Insights from Selwyn

The progress of medical cannabis in Gibraltar – the context, the story so far and a glimpse of the future

Introduction The issue of the use of cannabis for the treatment of certain medical conditions has developed an increasingly higher profile in the mainstream media in the last few years.  […]

Posted on

Setting up a business in Gibraltar

There’s never been a better time to set up a business in Gibraltar. Gibraltar continues to offer many advantages for entrepreneurs chasing their dream as well as international companies looking […]

Posted on

Gibraltar joining Schengen makes it the Ultimate Residence

On 31st December 2020, the Chief Minister of Gibraltar, Fabian Picardo, announced that a Framework Agreement had been reached between the United Kingdom and Spain in respect of Gibraltar which will […]

Posted on

Latest Insights from Hassans

Musings of a crypto theorist – regulate it, tax it and imitate it

In much of my writings I have always been fascinated by the ‘what if’ and ‘why’. A lot of what I have written is still scattered around the indelible ink […]

Posted on

International Tax Bites Series 2 / Episode 3

In this latest episode of the internationally acclaimed tax podcast series, International Tax Bites, Hassans’ Partner Grahame Jackson and Old Square Chambers’ Harriet Brown look at how to distinguish between […]

Posted on

International Tax Bites Series 2 / Episode 2

International Tax Bites explores concepts and issues in international taxation. In this latest episode the duo, Harriet Brown and Grahame Jackson, go off piste and explore what the greylisting of Malta means, […]

Posted on