Gibraltar is a self-governing, self-financing British Overseas Territory, that offers both a wonderful climate and a high standard of living that appeals to many HNWIs.
Gibraltar offers a complete range of wealth structuring and tax planning solutions and, in fact, in general, there are no inheritance taxes, capital gains taxes or value added taxes levied in Gibraltar, and no withholding taxes on dividends, interest or royalties.
Gibraltar offers special residency regimes that are specifically designed to attract HNWIs and High Executives Possessing Specialist Skills (HEPSS).
HNWIs
For HNWIs the Key Tax Benefits are:
- gross assessable income is generally capped at £105,000 per annum
- at current rates, maximum annual tax liability is £37,310
- at current rates, minimum annual tax liability is £32,000
- spouse and family income may be included
- Gibraltar does not levy wealth tax, capital gains tax, inheritance tax or gift tax and neither does it levy income tax on many types of investment income.
The benefits of residency can extend to the worldwide income of a spouse or civil partner and of dependent unmarried children up to 18 years or to the end of their higher education.
To become a resident in Gibraltar, an applicant is required to:
- verify that he or she has a minimum net worth of £2 million and is of good character
- either rent or buy appropriate accommodation in Gibraltar for his or her exclusive use.
Eligibility restrictions apply if the applicant has previously been resident or working in Gibraltar within the preceding five years.
Once established, there is no minimum physical presence required to maintain the residency and it is conferred for an indefinite period of time, but it is required to be endorsed every three years.
HEPSS
For HEPSS the Key Tax Benefits are:
- gross assessable income is capped at £160,000 per annum
- at current rates maximum annual tax liability is £39,940
Qualifying individuals are required to satisfy the following conditions:
- the applicant must have specialist skills that are necessary to promote and sustain economic activity of particular value to Gibraltar
- those skills are not available in Gibraltar
- the applicant will occupy a high executive or senior management position
- the applicant will earn more than £160,000 per annum in Gibraltar
- the applicant must have exclusive use of approved HEPSS property. The property may either be bought or rented
- the applicant has not previously been resident or working in Gibraltar within the three years preceding the application
For HEPSS residents with a valid and in force HEPSS certificate on 31 July 2021, earning more than £120,000 but less than £160,000, there are transitional rules, which can apply to 31 July 2023.
