TAXATION IN GIBRALTAR

FINANCIAL CENTRE OF EXCELLENCE

Gibraltar, a ‘Financial Centre of Excellence’, has a reputation for being one of the best regulated economies in the world, and was listed in the 2012 Global Financial Centres Index as being in the top five of just 38 countries whose ratings had increased from the previous year. Gibraltar has the fifth highest number of banks per capita in the world, and is ranked second, after the British Virgin Islands, for its per capita concentration of Big Four accounting firm offices.

High standards and robust regulation are at the core of Gibraltar's business practice. Positive reports on implementation of anti-money laundering measures and the transparency of taxpayers’ financial arrangements and transactions have put Gibraltar on the OECD white list of compliant jurisdictions.

Gibraltar is an attractive jurisdiction from a tax perspective. This is principally because of its favourable income tax regime that exists for both individuals and companies, along with special tax regimes that exist for certain types of resident, and the absence of some notable taxes, for example, there is no Capital Gains Tax, Wealth Tax, Inheritance Tax or VAT.

INCOME TAX REGIME

For both individuals and companies the income tax regime generally taxes income which “accrues in or derives from” Gibraltar. This is defined in local law as the location of activities which gives rise to the profits. 

This basis of income taxation coupled with minimal taxation on investment income (for example, dividends from listed companies are not taxable and neither are dividends paid from one company to another nor bank interest), and a 0% tax rate (or full exemption) for approved pension income, makes Gibraltar an attractive fiscal jurisdiction to relocate to. Furthermore, individuals are able to transfer foreign accrued pension rights to approved Gibraltar pension schemes and pay only 2.5% tax on the income deriving there from. This is of particular interest to those individuals looking to retire somewhere warmer.

At a time when governments around the world are increasing personal and indirect taxes to increase revenues, Gibraltar remains committed to providing a low-tax framework.



  • Capped tax liability based on income of £80,000
  • Maximum tax of £27,560 p.a.
  • Minimum tax payable of £22,000 p.a.
  • Spouse and family income may be included
  • No minimum physical Gibraltar presence requirement. However, being a Category 2 resident will not protect an individual from becoming tax resident elsewhere
  • No capital taxation

All information is correct at the time of going to print, our advisers can confirm any recent changes therein.

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