Purchasers

Anyone can buy a property in Gibraltar which is in the open market. EU citizens have the right to live in Gibraltar. Other foreign nationals may enter or live in Gibraltar subject to their visa status and employment status. See our residency page.

The open market in Gibraltar consists of properties where there is no eligibility criteria to purchase the property. Once purchased, the owner may reside in Gibraltar (subject to residency rules), visit the property for short breaks or let the property. All properties on the Chestertons website are in the open market unless stated otherwise.

The local market in Gibraltar consists of properties with an eligibility criteria of a minimum three years of Gibraltar residency before being able to purchase. Chestertons has a dedicated page for these properties.  Click here.

Stamp duty is between 0% and 3.5% of the purchase price of a property. There are special concessions for first and second time buyers. There is also stamp duty on a mortgage which peaks at 0.2% of the loan. See our stamp duty calculator.

On completion.
The purchase price of the property including parking space (where applicable) excluding moveable fixtures and fittings so these should be purchased at an arm’s length price.
On a comparable basis with other countries, costs are low. Expect to pay stamp duty of between 0% and 3.5%, legal fees of between £500 and 0.5% of the purchase price and a few hundred pounds for land registration costs and disbursements.
Once an offer is agreed with a vendor, it is customary to pay the agent a 2% reservation deposit to secure the property. This demonstrates intent to the vendor. Upon receipt by the agent of the 2% the vendor should remove the property from the market and it is usual for the vendor to do this although he is not obliged to do so.
The basis upon which the 2% is held by the agent is agreed between the buyer and the agent. At Chestertons, the 2% is held in a ring-fenced client account and held to the buyer’s order until the earlier of exchange of contracts or completion. This means that the buyer can withdraw at any time until exchange of contracts with the 2% refunded but this also means the vendor can withdraw at any time until exchange of contracts or completion as well. The property is legally secured on the earlier of exchange of contracts. Be wary of estate agents who do not use a client account for your deposit (contrary to the Estate Agents’ Code of Conduct) and who accept a 2% deposit on a non-refundable basis masquerading as an estate agent’s fee. We do not operate this way at Chestertons.
This is negotiated between vendor and purchaser although in almost all cases the purchaser pays 10% of the purchase price (ie an additional 8% assuming the purchaser has already paid a reservation deposit of 2%).
If the vendor does not have a mortgage and the title deeds are readily available and the purchaser does not need a mortgage then the process can be as quick as one or two weeks. In such cases, and if neither party seeks a delay, it is normal to proceed straight to completion without an exchange of contracts. If a mortgage is involved on behalf of the purchaser, the process will more likely be four weeks from agreed offer to completion. If either party wishes to delay for logistical reasons, it is normal to exchange contracts and set a completion date negotiated between both parties.
The vendor may choose to sell furnished or unfurnished. The norm is furnished “with the exception of personal items”. The price quoted is usually furnished, however, this can vary so do check with the selling agent.
It is possible for a non-Gibraltar based bank to mortgage a Gibraltar property. However, this is not usual unless the purchaser has other assets belonging to the purchaser held by the foreign bank.
We can introduce you to our contacts at each of the local banks who deal with mortgages. We do not provide credit advice.
If you need a mortgage then your mortgage lender will arrange a mortgage valuation that you will have to pay for in order to secure a mortgage. A mortgage valuation merely confirms that the property is worth what you are being loaned and will not give details on the condition of the property unless specifically requested and paid for. If you do not need a mortgage then you do not need a survey unless you wish to have one for your own peace of mind.
We recommend organising home and contents insurance shortly before the earlier of exchange of contracts or completion on your property purchase. Insurance policies should begin from the exchange of contract date. On an apartment purchase (as opposed to a house) with a shared buildings insurance policy, your conveyancing lawyer should confirm that the policy provided by the management company is sufficient in which case you may only need contents insurance. We can provide you a contact name at a Gibraltar insurance broker who can assist you if you wish.
Each developer will have their own rules. However, most developers conform to an expected norm. The standard in Gibraltar is that a reservation fee of 2% is paid to the developer to reserve a property. If the purchaser decides not to proceed, the 2% is non-refundable. This is a fundamental difference with the resale market. Exchange of contracts will occur once the developer has sold a certain number of units, and a further 10% will be payable by the purchaser. There are usually two more instalments of around 9% each, one payable at completion of the sub-structure (foundations) and one payable on completion of the super structure (the frame, often called ‘topping out’) with 70% payable on completion. Each development will vary, however, this is the standard pattern.
A purchaser may wish to buy an off-plan resale, ie from the original purchaser not the developer. In this case, the purchaser will pay to the vendor the equivalent of all monies paid by the vendor to the developer to date, plus the vendor’s profit and will then be liable direct to the developer for future payments. Therefore, if the vendor originally purchased at £200,000 and has paid £30,000 thus far and is selling for £225,000, then the purchaser will pay the vendor £30,000 plus £25,000 profit and will be liable for the remaining instalments of £170,000 to the developer.
You must attend the offices of AquaGib (water), Gibelec (electricity) and Gibtel (telecoms) to connect to the main service providers, taking with you your passport or certificate of incorporation (if company), title deeds and bank details. We can undertake this process for you for a small fee.
Yes, and this is common for landlords. We can suggest various companies who can incorporate a company for you. Costs are at the low end of the EU norm.
There are no property holding taxes or wealth tax or capital gains tax in Gibraltar. Landlords must pay income tax on net property rental proceeds (ie after direct costs including interest, service charges and rates). Personal allowances can be used for landlords resident in Gibraltar. Where the landlord is a company, the company will be liable to corporate tax on net rental proceeds which is currently 10%.
All open market properties, which means any on the Chestertons website, may be let out to tenants. Chestertons provides the most comprehensive letting and management service in Gibraltar.
We do not recommend any particular solicitor however we can provide you with a list of solicitors for you to contact.
Once an offer is accepted and the 2% deposit paid, we will prepare a document summarising the property, parties involved, agreed terms and contact details of each party’s nominated conveyancing solicitor to issue to both parties and the solicitors. This starts the legal process of the sale and purchase.

The 3 year residency property market (also known as the local market or restricted market) extends to only those applicants who have been living in Gibraltar for a continuous period of 3 years. This is normally evidenced by a Gibraltar ID card. These properties may only be occupied by the owner and his / her immediate family. These properties may not be rented out to any third party and are therefore unsuitable for buy to let investors. Given these restrictions, these properties trade for lower prices than unrestricted open market properties. Contact us if you have any questions.