Cat 2 residency
Cat 2 residency in Gibraltar allows approved persons with a net wealth of over £2m to pay tax only on their first £80,000 of taxable income, equivalent to an annual liability of £27,560, but subject to a minimum of £22,000.
To be a Cat 2 resident of Gibraltar, the applicant must:
1. Have a net personal wealth of at least £2m
2. Be of good character and reputation (references will be required).
3. Have residential property available for their exclusive use in Gibraltar (bought or rented for min 12 months) which has been approved by the Gibraltar Finance Centre Director.
4. Not have been resident in the 5 years preceding the year of the application or substantially present in the last 3 years.
5. Have private medical insurance which must also include evacuation and repatriation cover.
The benefits of Cat 2 residency status in Gibraltar are:
1. The maximum tax to pay annually is £27,560.
2. There are no minimum physical presence requirements, affording Cat 2 residents maximum lifestyle freedoms.
3. For family taxation, a spouse and dependents may be included within the main application, streamlining and simplifying family taxation.
4. Cat 2 residents may benefit from additional advantages which are available where wealth is held via a trust.
Cat 2 residents of Gibraltar may establish Gibraltar companies for the purpose of holding investments and / or for trading outside of Gibraltar. It is also possible to:
1. Undertake trade and other commercial activities in Gibraltar (subject to advance approval and payment of tax on profits).
2. Purchase buy-to-let commercial or residential property in Gibraltar.
Please note that the £80,000 income cap does not apply to local trading and rental income.
Our joint venture company, Buckingham Corporate Services Limited (BCS), can assist you with your application for Cat 2 residency status in Gibraltar.
BCS provides a range of services to Cat 2 clients including:
1. Dealing with all aspects of the application and immigration process.
2. Tax planning to maximise the benefits of your Cat 2 status.
How can we help?
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