About Gibraltar Citizenship and Residency

There are essentially three types of Gibraltar residency available to British/EU nationals and/or other nationals with permission to reside in Gibraltar. The suitability of each option would very much depend on what you are trying to achieve for your tax-planning purposes.

 

Residence Status

Category 2 Individual Resident

They are typically suited to individuals seeking to extricate themselves from another higher tax jurisdiction, where the tax authorities want to see proof of the individual’s substantial commitment to pay tax in Gibraltar. The applicant has to commit himself to buy or rent (for a minimum period of 1 year), a property of ”prestige” value that has been pre-approved by the Finance Canter as suitable for this type of status applicant (not typically available for purchase by the local tax-payer). The minimum tax contribution in Gibraltar is GBP ₤32,000 per annum (maximum GBP ₤37,310 per annum).

 

Eligible for Category 2 Individual Resident

• Category 2 Individual Resident is available to all non-Gibraltarian individuals who establish a residential address in Gibraltar, have not been ordinarily resident in  Gibraltar during the preceding 5 years, and do not derive any income from Gibraltar sources other than from Gibraltar Tax Exempt Status companies.
• The Government of Gibraltar will normally insist that the address to be established in Gibraltar is rented for a minimum of 12 months or purchased by the individual for his exclusive use during a minimum period of 7 months in a year and that he resides in Gibraltar for a minimum of 30 days in each calendar year (which period need not be consecutive).
• The minimum costs of purchasing an apartment for this purpose will normally range from around ₤300,000 to ₤500,000 for a one-bedroom flat with minimum dimensions of 60m2 and will have to be classified as an approved property for this purpose.

 

Advantages of Category 2 Individual Resident

• Category 2 Individual Resident is obtained by application to the Licensing Authority Gibraltar, and once granted allows the individual to elect the level of taxation that he wishes to pay in Gibraltar while being guaranteed that his total tax bill will not exceed approx. GBP ₤37,310 per annum. The minimum amount of tax payable in Gibraltar under this status is around GBP ₤32,000 per annum with the provision that the tax is only levied on the first GBP ₤60,000 of assessable income. In other words, we can confirm that an applicant’s worldwide tax liabilities will be exclusively held in Gibraltar but capped at a maximum tax bill of GBP ₤37,310 regardless of the amount of worldwide income earnt, and excluding any taxes levied on assets held in foreign jurisdictions (such as rental income).
• Category 2 Individual Resident, therefore, can be particularly useful for those persons who may wish to show a tax authority in another jurisdiction that they are subject to taxation in Gibraltar to persuade them that they should only be expected to pay a nominal amount of tax in their home jurisdiction, at the same time as they keep their taxation level in Gibraltar to an absolute minimum.
• It should be noted, however, that simply because a Category 2 Individual pays tax in Gibraltar, this does not automatically mean that they will not be taxed by one or more other foreign jurisdictions. It would be up to the individual himself to ensure that this does not happen and that his tax affairs are arranged competently to accommodate a minimum tax commitment of between GBP ₤32,000 and GBP ₤37,310 per annum in Gibraltar (assuming that this represents a substantial saving to his tax bill in the country where he is currently tax resident).

 

Annual Responsibilities of the Category 2 Individual

• To be present in person once a year for the renewal of his Gibraltar identity card.
• Submit a statement of accounts in June of each year to the Gibraltar Tax Department testifying the amount of worldwide income earned so that tax at the agreed rate may be properly assessed. There is no requirement for a full set of accounts to be presented, nor for the details contained therein to be audited.

 

Self-Sufficiency Residency

This is not a tax status which means that it does not provide an applicant with a Tax Identification Number. It is therefore typically suited to individuals with relatively high savings or pension arrangements who are not currently tax residents in any particular jurisdiction, but who feel that they need to settle down and show some form of commitment to a particular jurisdiction. At the end of this process, the client obtains a Gibraltar Resident ID Card but does not obtain a health card or any other access to local services unless he volunteers a regular Social Security contribution to the local Tax Authorities. The applicant has to commit himself to buy or rent (for a minimum period of 1 year), a property situated in Gibraltar which does not have to seek prior approval from the Finance Center. No minimum tax contribution.

 

Ordinary Gibraltar Resident 

This status is typically suited to individuals looking to establish a working presence in Gibraltar and to pay tax on their earnings locally either as an employee or as an employer who sets up his own Company to pay taxes at local rates. Minimum tax contribution to be determined based on level of remuneration and commitment to paying Social Security contributions.

 

 

Benefits of Gibraltar Residency

• amazing Mediterranean climate
• eight months a year of beautiful weather
• Gibraltar tipped to be among the ”green list” travel destinations
• great opportunity to invest
• no capital gain
• no inheritance tax
• great healthcare system
• multi-cultural
• great quality of life
• no minimum stay requirement
• option to include family

Gibraltar Residency Requirements And Qualifications

Required documents:

• a passport or ID card for EU citizens
• proof of accommodation
• one photograph
• proof of income, where applicable
• proof of payment of the registration fee
• information about family members
• an application form

 

 

Steps And Timeline

Step 1: Check if you need to apply for a Gibraltarian Visa.

Step 2: Know when is the right time to apply.

Step 3: Figure out what type of Gibraltarian visa you need.

Step 4: Find out where you should lodge your application.

Step 5: Fill in the correct Gibraltarian visa form.

Step 6: Collect the documents required for a Gibraltarian visa.

Step 7: Make a visa appointment.

Step 8: Attend the visa interview.

Step 9: Submit your biometrics.

Step 10: Pay the visa fee.

 

Our Services

Privacy World offers its services to anyone, not only looking to obtain residency and citizenship processes but our experts figure out legal ways to:

• Find the best solution for your needs.
• Identify and deploy a strategy to help you accomplish your goals.
• Activate our network of people in the country where you need help without having you search for the best solution or lawyer. We only work with licensed people in every country whom we carefully vet and pass the guidelines and principles of privacy we stand for.
• Focus on cutting through the red tape and expedite your process.
• Provide proper communication with you about your case.
  …. and above all: Offer you legal strategies to provide additional layers of privacy for your identity, while obtaining your residency or citizenship!

Privacy World can also help you with incorporating your company in Gibraltar, assisting in getting you settled in the country, and coordinating with you so that this experience will be less hassle.

Want Privacy World to handle your case? Have any questions? Contact us!

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