Individuals wishing to take advantage of living in a Southern Mediterranean location whilst also enjoying a beneficial tax environment may apply to become residents of Gibraltar under the Qualifying (Category 2) Individual Rules 2004 (“the Rules”).
Under the Rules, individuals in possession of a Qualifying Certificate (“Qualifying Individuals”) are liable to income tax on the first £50,000 of assessable income. The minimum income tax liability, irrespective of income, is £14,000 per annum, whereas, at current rates, the maximum liability is approximately £20,000 per annum.
Qualifying Individuals may engage in trade, business or employment that is based outside Gibraltar and may benefit from tax structures, such as Gibraltar Trusts, that are usually only available to non-residents and which, under certain conditions, are not subject to taxation.
Individuals with substantial assets and/or income may, therefore, chose to establish their tax residence in Gibraltar and take advantage of the Rules in their tax and estate planning thereby limiting their tax liability on worldwide income.
It should be noted that there is no minimum residency requirement under the Rules.
The above benefits together with the fact that no capital gains tax, estate duty or inheritance tax is payable in Gibraltar make residence in Gibraltar an attractive proposition for individuals who are able to fulfil the criteria required.
The advantages of obtaining tax residency in Gibraltar are considerable. The close proximity of Andalusia, with its cities steeped in history and culture, together with the availability of the Costa del Sol and Portuguese Algarve, with their internationally renowned leisure activities including several leading golf courses, increase the appeal of Gibraltar as the ideal location for tax-efficient residence.
We can assist you with your application for this status as well as helping you with your search for a suitable property and liaising with estate agents and lawyers on your behalf.
