Personal Income Tax
Individuals are taxed under one of two systems, whichever is most advantageous. No tax is payable where assessable income is £11,150 or less.
(i) Gross Income Based System (GIB)
Tax is calculated on gross assessable income*:
First £17,000* 16%
£17,001 to £25,000* 19%
£25,001 to £40,000 25%
£40,001 to £105,000 28%
£105,001 to £500,000 25%
£500,001 to £700,000 18%
* Individuals with gross assessable income not exceeding £25,000 pay at 6% on the first £10,000, 20% on the next £7,000 and the balance at 28%. Deductions are available for medical insurance, pensions and home purchase etc.
(ii) Allowances Based System (ABS)
Tax is calculated on net taxable income (subject to some tapering relief for income below £19,500):
First £4,000 14%
Next £12,000 17%
Over £16,000 39%
Special Tax Status for Individuals
Available for applicants satisfying eligibility criteria. Includes rental or purchase of an approved residential property.
(i) High Net Worth Individuals (Category 2)
Persons with net wealth of £2M+ can apply to pay tax only on their first £80,000 of taxable income, equivalent to an annual liability of approximately £27,000, but subject to a minimum of £22,000.
(ii) High Executive Possessing Specialist Skills status (“HEPSS”)
Relocating executives with relevant skills pay tax only on the first £120,000 of their earned income (maximum tax £29,940). A minimum salary of £100,000 is required.
Stamp Duty on Real Estate
Purchase Price Rate
To £200,000 Nil
to £350,000 2.0% on first £250,000
5.5% on balance
Over £350,000 3.0% on first £350,000
3.5% on balance
No stamp duty is payable by first and second time buyers on the first £260,000 of the purchase cost then 5.5% on next £90,000 and thereafter 3.5%.
Non-resident Landlord Tax
Non-resident landlords who are individuals pay 17% tax on the first £16,000 of net rental income and 39% thereafter. Capital allowances are available.
Company Income Tax
Charged at 10% on income which is ”accrued in or derived from” Gibraltar.
There are no withholding taxes on the payment of dividends. Interest paid between connected companies is taxable where the recipient is a Gibraltar company and the amount is £100,000 or more per annum. Royalty income received by a Gibraltar company is subject to tax at 10%.
As well as a favourable income tax regime, Gibraltar has no taxes on: savings income (dividends and interest); royalties; capital gains; wealth, gifts, estates and inheritance; and has no VAT.
QROPS (UK Pension Transfer)
A tax-free pension commencement lump sum of up to 30%. Income drawdowns taxed at 2.5%.
Notice: This note provides general information on the Gibraltar tax system which may be of interest. It is not intended to be comprehensive and should not be construed as professional advice. Some figures are based on the Budget of 26 June 2017 and are subject to legislative approval.
Information provided by: Almanac Limited, 30/2 Cornwall’s Lane, P.O. Box 1451, Gibraltar
T: +350 200 42250 F: +350 200 42252 E: firstname.lastname@example.org www.almanac.gi