Provided an application is accepted by the
Finance Centre Director Category 2 residents
could be benefiting from:
Maximum income tax payable £28,360 on
worldwide income
No inheritance tax
No capital gains tax
No VAT
No wealth tax
No tax on savings or dividend income
(from companies quoted on a recognised
Exchange)
A flat rate of 2.5% income tax on QROPS
and QNUPS pensions in drawdown
Once established there is no physical
presence required in Gibraltar although it is a
requirement to purchase or rent an approved
property. Purchase would be the preferred
option as renting might raise questions in
respect of permanency of residence from the
jurisdiction that the applicant was leaving.
It is also important to note that whilst
there are no minima or maxima number of
days required for residency in Gibraltar it
is essential not to fall foul of the residency
rules in another jurisdiction by spending
too little time in Gibraltar and an individual
is considered ordinarily resident in Gibraltar
when they are present in Gibraltar for at least
183 days in the year of assessment or over
300 days in aggregate over three consecutive
years of assessment.
There is a general principle that Category 2
individuals should not obtain employment
or carry on business in competition with an
ordinary taxpayer, whether this is done in
an individual name or through a company.
However the Ministry of Finance is prepared
to make exceptions where it can be proved
that there is exceptional economic benefit for
Gibraltar which warrants a departure from the
general principle.
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Category 2 residency status represents an
extraordinarily attractive proposition and we
understand that the Gibraltar government is
currently looking at options to further broaden
the appeal of Category 2 residency.
Self Sufficiency
For those retired or enjoying a passive
income from investments and savings there
is perhaps an even more interesting and
effective residency option known as “selfsufficiency”. This really is a fantastic option
with no direct tax to pay on passive income,
save for the flat rate of 2.5% on QROPS or
QNUPS pension income.
Corporate Tax Residency
Whilst Gibraltar offers entrepreneurs and
wealthy individuals taking up residency an
opportunity to enjoy a privileged tax regime
exactly the same can be said for companies
and their employees. Gibraltar has introduced
a flat rate of corporate tax of 10% for companies with an equally attractive set of personal
tax rates for its employees.
In the same way that there are compelling
arguments for individuals to relocate to
Gibraltar there are equally powerful reasons
why companies will find Gibraltar an ideal
location to set up or switch their trading base.
Gibraltar is already an established location
for some of the major on line gaming firms
and a plethora of financial services operations
and the Government is encouraging the
building of new office space to keep pace with
increased demand. There is a new international
airport terminal and construction has already
commenced for a Gibraltar World Trade
Centre which will add a significant amount of
office space along with many other building
develop-ments