Personal Income Tax
Individuals are taxed under one of two systems, whichever is most advantageous. No tax is payable where assessable income is £11,450 or less.
(i) Gross Income Based System (GIB)
Tax is calculated on gross assessable income*:
£17,001 to £25,000*
£25,001 to £40,000
£40,001 to £105,000
*Individuals with gross assessable income not exceeding £25,000 pay at 8% on the first £10,000, 22% on the next £7,000 and the balance at 30%. Deductions are available for medical insurance, pension contributions 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):
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 £118,000 of taxable income, equivalent to an annual liability of approximately £44,740, but subject to a minimum of £37,000. The full year liability must be paid annually on 30 November in the tax year to 30 June.
(ii) High Executive Possessing Specialist Skills status (“HEPSS”)
Relocating executives with relevant skills pay tax only on the first £160,000 of their earned income (maximum tax £43,140).
Stamp Duty on Real Estate
2.0% on first £250,000
5.5% on balance
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 landlords who are individuals pay 19% tax on the first £16,000 of net rental income and 41% thereafter. Capital allowances are available.
Company Income Tax
Charged at 12.5% 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 also taxable.
As well as a favourable income tax regime, Gibraltar has no taxes on:
Savings income (dividends and interest)
Royalties and capital gains.
Wealth, gifts, estates and inheritance
Sales (e.g. VAT)
QROPS (UK Pension Transfer)
A tax-free pension commencement lump sum of up to 30%. Income drawdowns taxed at 2.5%.
Information provided by: Athena Ventures Limited, 30/1 Cornwall’s Lane, P.O. Box 1451, Gibraltar
T: 350 200 42250 Email: email@example.com www.athena.gi