The Strait of Gibraltar links Atlantic and Mediterranean

Transfer of Tax Residence to Gibraltar: Category 2 Individuals, Residency by Investment and Golden Investor Visa

Apply for Category 2 tax status and Gibraltar residence

Description of the Gibraltar Residency by Investment Program

Gibraltar offers residence and a special tax status ("Category 2 tax status") to foreign high net worth individuals who (i) own more than £2,000,000 as evidenced in a bank statement and (ii) own or rent an appropriate flat in Gibraltar and (iii) have not been tax residents in Gibraltar for the last 5 years.

Such individuals receive a Category 2 Certificate (for an indefinite period) and pay a minimum annual tax of £22,000 and a maximum annual tax of £27,560.

Gibraltar is a British overseas territory on the southern tip of the Iberian Peninsula with a population of around 30,000. It is a self-governing and self-financing parliamentary democracy with a growing economy centered on financial services, e-gaming, shipping, and tourism.

Gibraltar's appeal as a tax-efficient residence is increased by its proximity to historic Andalusia, the Spanish Costa del Sol (Marbella, Porto Banús) and Portugal's Algarve coast with their internationally renowned leisure activities including several golf courses.

Naturalization as a British Overseas Territories Citizen (BOTC)

After 5 years of permanent residence in Gibraltar, it is possible to apply for naturalization in Gibraltar (here) if the following conditions are met:

• Certificate of good conduct from the Royal Gibraltar Police
• Rental agreements, property deeds or letters from landlords, preferably throughout the 5-year period (3 years if married to a British Overseas Territories Citizen)
• School reports (if applicable), tax and medical records, that confirm a continuous stay in Gibraltar for 5 years (3 years if married to a British Overseas Territories Citizen)
• Historical record of electricity/water bills obtained from AquaGib for a continuous 5-year period (3 years if married to a British Overseas Territories Citizen)
• Letter of reference from two Gibraltarians aged 25 or over, and on the electoral register (cannot be the applicant's relative, lawyer, or agent)

The Gibraltar passport is a British passport issued to British Citizens and British Overseas Territory Citizens who work or live in Gibraltar.

British passports issued in Gibraltar differ from UK issued ones only in some of the wording but otherwise have the same status (the word "Gibraltar" is added beneath "United Kingdom of Great Britain and Northern Ireland").

What Are the Key Benefits of Living in Gibraltar?

• Gibraltar Airport (GIB) is easy to reach from London Gatwick (EasyJet), London Heathrow and London City (British Airways), in addition to Casablanca and Tangier (Royal Air Maroc). Flights from Gibraltar to the UK take less than 3 hours.
• Gibraltar is a 90 minutes car drive away from Malaga, Sevilla, and Faro
• There is no VAT, no capital gains tax, and no inheritance and gift tax in Gibraltar
• The Gibraltar pound (GIP) is at par with UK sterling - Gibraltar is not a Eurozone country
• Possibility of becoming a UK citizen within 5 years of permanent stay in Gibraltar (3 years if married to a British Overseas Territories Citizen)
• Gibraltar operates a low tax regime including a tax residency scheme for individuals with net assets in excess of £2m capping the maximum personal income tax at £27,560
• Category 2 individuals are since 2004 permitted to do business and invest in Gibraltar, but must notify the specifics of the business activities to the Ministry of Trade and Industry during the application process
• The spouse or child of a Category 2 individual can benefit from the terms of the same Category 2 Certificate
• Cat 2 individuals can benefit from tax-free private wealth structures such as Gibraltar trusts usually available only to non-residents
• Under the Gibraltar residence program, British Overseas Territories (BOT) citizenship is possible after 5 years (no language requirements) which is among the shortest waiting period in comparison to other residency and citizenship programs such as the Australian Investor Visa (here) (Australian citizenship after 5 years), the Austrian Red-White-Red card (here) (EU citizenship after 6 years), the Portuguese Investor Visa (here) (Portuguese citizenship after 6 years), the Greek Investor Visa (here) (citizenship in Greece after 7 years), the Italian Investor Visa (here) (citizenship in Italy after 10 years), the Monaco Investor Visa (here) (citizenship after 10 years), the Spanish Investor Visa (here) (citizenship in Spain after 10 years), and the Swiss Investor Visa (here) (naturalization in Switzerland after 12 years)
  

What Are the Key Downsides of the Gibraltar Golden Visa?

• Tax residency is a complex matter and a Category 2 Individual certificate will not shield its holder from becoming tax resident in a different country
• Property prices are high – fuelled by the strong economy and Gibraltar's attractiveness to tax exiles (here)

What Are the Physical Presence Requirements under Gibraltar's Category 2 Tax Status?

How much Is the Personal Income Tax in Gibraltar?

Corporate Income Tax in Gibraltar

> There is no dividend and capital gains tax in Gibraltar.

How much Is the Real Estate Tax in Gibraltar?

What Are the Conditions to Get the Gibraltar Category 2 Certificate?

As a rule, Gibraltar issues a special tax status to individuals (i) of substantial and sound financial standing (ii) of good character and (iii) such that the issuance of the certificate would not be deleterious to the reputation of Gibraltar.

1) High Net Worth Individuals: The individual must have net assets in excess of £2,000,000 usually evidenced by a bank statement or a written confirmation from the applicant's accountant.

AND

2) Property Requirement: The individual is required to either purchase or rent an apartment in Gibraltar and have it available for his or her exclusive use. It therefore cannot be rented out in any way. In addition, the qualifying accommodation must be of a certain standard appropriate to sustaining the lifestyle of a wealthy individual.

Property Approval Application

The applicant must submit a "Residential Accommodation Approval Form". At the time of application or within two months of the issue of the Category 2 Certificate, the individual must submit a copy of the respective title deed or rental contract.

AND

3) No exclusion by previous residence and activity: During the previous 5 tax years, the individual has not been (i) resident in Gibraltar or (ii) engaged in a trade, business, or employment in Gibraltar.

AND

4) Good character: The individual must provide 2 character references from recognized and established professionals (one of which must be from a bank and the other from a law or accountancy firm), a copy of his or her passport, a curriculum vitae and proof of his financial standing.

> The Ministry of Trade and Industry may in individual cases require to submit further information before approving the application.

What Are the Costs of the Gibraltar Category 2 Certificate?

What is the Procedure and How Long Does it Take to Get the Category 2 Certificate?

Applications for the Cat 2 tax status in Gibraltar are normally approved within 2 weeks.

Which are the necessary steps to get a Category 2 Tax Certificate in Gibraltar?

1. Written application to issue a Category 2 Certificate
2. Submit a copy of the title deed or rental contract of the approved residential accommodation
3. Issuance of Category 2 Certificate for an indefinite period provided the qualifying conditions still apply on each three-year anniversary of the issuance (renewal) of the certificate

> In particular, Category 2 tax residents in Gibraltar must submit, within 30 days immediately preceding the third anniversary of its issuance, or most recent endorsement date, their Category 2 Certificate for regular endorsement.

Which are the necessary steps to get a residence permit in Gibraltar?

Residence in Gibraltar can be obtained after the Category 2 status has been granted. The application is made to the local authorities who will exercise their discretion within the parameters of Gibraltar's Immigration, Asylum and Refugee Act (here) and immigration policy in accordance with instructions from the Governor and in consultation with the Government.

a) European nationals have an automatic right to reside in Gibraltar provided they:

• Will not become a public burden
• Have a place to live sufficient in size to accommodate the applicant and all his family
• Have private a full-risk medical insurance including dependants and covering repatriation

b) Non-EU nationals, for example Ukrainian, Indian, or Chinese citizens, have no automatic right of residence in Gibraltar and their application for a residence permit in Gibraltar is more difficult.

However, the Governor of Gibraltar has discretion to grant a residence permit to non-EU nationals provided:

• The non-EU national is of good character in the opinion of the Governor
• It is in the interests of Gibraltar that such a residence permit should be granted

As a rule, persons who obtained a Category 2 Individual Certificate are entitled to also apply for a residency permit.