With its favourable tax system, vibrant international community, and stunning coastal scenery, Gibraltar offers a seamless blend of British infrastructure and Mediterranean charm.
In this guide, we’ll walk you through everything you need to know about relocating to Gibraltar from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Gibraltar follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you spend more than 183 days in Gibraltar during the tax year and 300 days in the current and previous tax years years.
Providing that you have been non-resident for five tax years, you have accommodation in Gibraltar, you have 2,000,000 in assets and you will not engage in professional activity in Gibraltar, your taxable income will be capped at 118,000. Gibraltar can be a very tax efficient place to live for expats and nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Capped at £118,000.
Applies indefinitely.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Gibraltar, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Gibraltar has two double taxation agreements signed.
